Mysuru emerges as an affordable alternative as Bengaluru buyers feel the heat from AI jitters and soaring prices

With Bengaluru property prices soaring and AI-driven job uncertainties rising, homebuyers are increasingly looking to Mysuru for affordable and livable housing

As property prices surge in Bengaluru, more homebuyers are looking toward Mysuru as a relatively affordable and more liveable alternative, reflecting a broader shift in demand toward Tier-2 cities, real estate experts said.

As Bengaluru prices rise, buyers turn to Mysuru for affordability and livability, signalling a shift to Tier-2 cities, say experts. (Picture for representational purposes) (Pexels )

Amid growing job uncertainty, particularly linked to the rise of AI, enquiries for Mysuru have picked up noticeably. Brokers note an increasing trend of Bengaluru homeowners liquidating assets and redirecting investments to Mysuru, attracted by lower entry costs and the promise of long-term growth.

This comes as the Karnataka state government plans to position Mysuru as the state’s next major technology hub, aiming to ease pressure on Bengaluru’s overstretched infrastructure. In the 2026–27 Budget, Chief Minister Siddaramaiah outlined plans to scale up infrastructure and roll out industry-friendly policies to attract IT and IT-enabled services firms to the city.

“Mysuru is no longer seen just as a spillover residential market. It is increasingly emerging as a potential employment hub, which is boosting its appeal among homebuyers looking beyond Bengaluru,” Manjesh Rao of BlueBrokers said.

Investors eye Mysuru as entry costs remain lower

Real estate brokers say they are increasingly seeing Bengaluru homeowners liquidate assets and redirect investments into Mysuru, drawn by lower entry prices and long-term growth potential.

Rao noted that some clients are already selling properties in prime Bengaluru locations, including Grade A projects in areas like Koramangala, to fund second homes or investments in Mysuru. “We are seeing clients exit premium Bengaluru assets and look at Mysuru as a second-home or investment destination,” he said.

According to Rao, this shift is being driven not just by affordability but also by changing job dynamics. “With the uncertainty around jobs, especially due to AI, there has been a noticeable increase in enquiries for Mysuru,” he said.

He pointed out that property prices in Mysuru remain significantly lower compared to Bengaluru. “Entry prices here are still about 20–30% cheaper, and in many cases, buyers feel they are getting in at a discount compared to Bengaluru valuations,” Rao said.

The presence of established developers is also boosting confidence.

Bengaluru versus Mysuru: Real estate brokers say they are increasingly seeing Bengaluru homeowners liquidate assets and redirect investments into Mysuru, drawn by lower entry prices and long-term growth potential. (HT Graphics)

Rao said, “You can get a 4,000 sq ft property for around ₹2 crore in good areas like Hebbal or Gokulam, something that is almost impossible in Bengaluru at that price point.”

“If this continues, it will naturally help decongest Bengaluru as more people consider alternatives like Mysuru for both living and investment,” he said.

Real estate sector in Mysuru

Traditionally viewed as a ‘pensioners’ paradise,’ Mysuru is now drawing interest from working professionals and second-home buyers, driven by its lower density, cleaner surroundings, and steadily improving infrastructure, real estate brokers said.

Real estate activity is picking up across several key neighbourhoods. Areas such as Kuvempu Nagar, Vijayanagar and Jayalakshmipuram are witnessing rising demand from professionals due to their access to the city’s northern growth corridors. Here, 2BHK apartments are typically priced from around ₹60 lakh and can go beyond ₹1 crore, while rents are estimated at ₹30,000 to ₹45,000.

Meanwhile, more central and culturally significant localities like Gokulam and Lakshmipuram offer relatively more affordable options. In these areas, 2BHK homes are generally available between ₹60 lakh and ₹80 lakh, with monthly rentals usually ranging from ₹15,000 to ₹20,000, real estate brokers said.

Peripheral locations such as Bogadi, Hebbal, and Nanjangud are also seeing increasing traction, particularly among buyers seeking larger homes at lower costs. Property prices in these areas typically range between ₹3,450 and ₹5,400 per sq ft, with 2BHK rents broadly falling in the ₹20,000 to ₹30,000 bracket, according to local market estimates, they said.

They said that established residential neighbourhoods such as Jayalakshmipuram, Agrahara, Saraswathipuram and Vidyaranyapura continue to draw demand because of their central location and well-developed civic infrastructure, which makes them attractive to both end-users and investors.