According to City
Corporation Town Planning Office, over 66 two-storey projects have been
launched since the beginning of the year till July, indicating that the
demand for residential property was good. But June-July have seen a
serious dip in the bookings. The slump is seen due to reluctance of
non-resident Indians, who account for 55%-60% of the demand, to invest
in the city properties.

PMA Razak, president, Mangalore Chapter of the Confederation of Real Estate
Developers’ Associations of India (CREDAI), told TOI that there is a
dip of about 10% in mid and affordable segment category apartments. This
goes up to 25% in the luxury segment. MD Siraj Ahmed Saif of Inland
Infrastructure Developers said that during his recent trip to Dubai,
he saw the investor confidence in Mangalore falling. ‘People in the
Gulf are insecure and they want to secure investments with more returns
than on real estate or residential properties. NRIs investing here are
not seeing much appreciation in their investments. Those who want an
assured and safe returns see bank deposits or other instruments of high
return as a safe bet,” he said.

He said that in Mangalore, if
an investor wants to sell a property, he doesn’t get the premium easily.
While in Bangalore, though the same situation prevails, because of the
vastness of the market, one will get a premium. Saif said that he’s into
various projects in Bangalore and though the market is difficult, he
feels comfortable. “Here where are the people? In the recent past no big
industry with an employment potential has come up, which says it all,”
he said.

Property Infratech India Private Limited, MD, Rohan
Monteiro said that when supply outstrips demand there is bound to be a
problem. “t also depends on the project location. Bellisma project on
Kadri Main Road was sold 90% in a few months after the launch. The same
project would not have attracted even 10% if it was elsewhere,” he
said. Dheeraj Amin of Northern Sky Properties admitted that the
value-for-money properties and locations play an important role in
investment flow. “Properties in convenient locations in mid and
affordable segment have faced no problem, but properties in excess of Rs
4,000 per sq ft have not been attracting customers as much in the past
couple of months,” he said.

Sources said, adding to the woes
is that the property rates in the city range from Rs 4,000 to Rs 4,500
per sq ft and in the outskirts it ranges between Rs 2,700 and Rs 3,500
per sq ft, now being considered prohibitive for a tier II city like
Mangalore. Moreover, some projects have long gestation period and NRIs
do not want their money to be locked up in uncertain environment.