The Hindu Business Line : Changing Mangalore landscape

As you drive along the national highways leading to Mangalore city, you see a lot of construction activity. At some places you witness work on flyovers and highway widening, elsewhere you see residential and commercial projects coming up.

If you are in the city after a gap of several years then the chances of getting a glimpse of old houses with the traditional ‘Mangalore tiles’ are bleak, most of them have made way for commercial and modern residential projects.

This is just the beginning for the taluk of 300 sq.km and a population of around six lakh .

“You will find a different Mangalore in three to four years time,” says Mr P.M.A. Razak, President, Kanara Builders’ Association, as he looks at the city’s landscape from his office in the busy Karangalpady area.

He attributes the boom in the retail sector to the huge investments anticipated in various projects, including petrochemicals and information technology, and to the vital infrastructure available in the region.

While IT major Infosys is already present in Mangalore, several others are slowly establishing their presence. Many more companies are planning a foray into Mangalore. Mangalore SEZ Ltd, which has acquired around 1,700 acres of land for a petrochemical project, wants to make it a multi-product SEZ in future.

“However, all these are in drawing board stage. These projects will take another two to four years for completion. That is why I think the real-estate boom has begun now in Mangalore,” he says.

Most of the commercial and residential projects are coming up in northern, north-eastern and eastern parts of the taluk, apart from Mangalore city. Arabian Sea adjoins the western part of Mangalore. Many educational institutions are favouring southern and south-eastern parts of the taluk. A few years ago it was the local developers and NRIs from Mangalore who invested in the real-estate sector here. Today, some of the biggest names in the sector are also moving in.

PRIME spots

Some of the hottest areas in the city are Falnir, Bejai and Kadri for residential projects, and Hampankatta, Balmatta, M.G. Road and K.S. Rao Road for commercial projects.

Mr Razak says that a cent ( 436 sq.ft) of land on Hampankatta, Balmatta and M.G. Road areas, quoted at Rs 4-5 lakh five years ago, now fetches Rs 20-30 lakh. The trend is similar with land in Bejai in the range of Rs 7-10 lakh (Rs 1-2 lakh five years ago) , Falnir and Kadri Rs 10-15 lakh (Rs 2-3 lakh).

Mr Ramesh Kumar, Proprietor, Janata Construction Company, says the average price of flats ranges from Rs 3,000 to Rs 4,000 per sq.ft, and flats are preferred over individual houses. Even old flats in certain locations command good price now.

MALLS

At present, Mangalore has around five lakh sq.ft of mall space. In the next three years it could be 25 lakh sq.ft, says Mr Razak. Two malls have already begun operations in Mangalore. At least, four more are in different stages of construction.

Mr Razak, Chairman and Managing Director of Plama Developers Ltd, says that his Plama Mall at Bikarnakatta in Mangalore will be the largest mall in the region with 15 lakh sq.ft of built-up area.

SEZ

The Government of India has approved seven SEZs totalling 3,000 acres in and around Mangalore. Among them, five have indicated that they will set up IT/ITES SEZs in Mangalore.

Mr Naren K., Managing Director of the Mangalore-based I-Point Consulting Services Pvt Ltd, says that Mangalore has enough built-up capacity in the IT sector. “What we need is investment in this capacity,” he adds.

Mr B. Abdul Salam, Chief Executive Officer of B.A. Tech Park (one of the approved ITES SEZs) at Thumbay near Mangalore, says that his company has started negotiating with some of the infrastructure development companies to tie up as co-developers.

TOWNSHIPS

Eyeing the growth prospects of the city, various developers from the city and from outside have planned several projects in and around Mangalore. A local developer is planning to develop a township on 200 acres of land at Kannur on the outskirts of the city. Some more townships are planned at Kulai, Mary Hill and Bondel areas around Mangalore and near the airport.

HOSPITALITY

A lot of hospitality projects are also on the cards in Mangalore. Mr Razak says that in three-four years’ time a handful of star-category hotels will be present in the city. Mr Ramesh Kumar says the increase in the floating population in the coming years would create the need for more hotel rooms.

Mr K.N. Prabhu, President, Kanara Chamber of Commerce and Industry (KCCI), feels there is scope for developing properties for beach, pilgrim and educational tourism also.

GROWTH CORRIDORS

Going by the present trend in the real-estate sector in Mangalore, players in the sector feel that stretches such as Nantoor to Ganjimath, Mangalore to airport, Panambur to Surathkal, and Pumpwell to Mudipu areas would emerge as the future growth corridors of Mangalore.

In such a situation, stresses Mr Razak, there should be a proper planning for the development of the city. It needs a good plan for the next 25 years, he adds.

More Stories on : Real Estate & Construction | Urban Development | Karnataka

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