Bangalore exodus: Why Mysore is the new hotspot for real estate amid affordability crisis, poor infra
Cost of living is another major draw, with expenses in Mysore estimated to be 10-20% lower than in Bangalore. Thanks to improved connectivity — particularly the Bangalore-Mysore Expressway completed in 2023 — residents can reach any part of the city within 15 minutes.
- Sep 27, 2025,
- Updated Sep 27, 2025 6:05 PM IST
Bangalore, long considered India’s tech and startup hub, is witnessing a growing exodus as residents increasingly seek relief in nearby tier-2 cities like Mysore. According to Sarthak Ahuja, an investment banker who recently shared insights on LinkedIn, the shift is being driven by the twin pressures of skyrocketing property prices and deteriorating urban infrastructure in the metro.
“Traffic in Bangalore has become so unbearable that the city is now ranked the third worst globally for congestion,” Ahuja wrote. “On average, residents spend 134 hours every year stuck in traffic.” But congestion is only one of the push factors. Rising air pollution, water scarcity, and outdated civic infrastructure are making city life increasingly unsustainable. Meanwhile, real estate prices in Bangalore have surged dramatically, making homes unaffordable for many. Apartments in prime areas now command prices that have outpaced wage growth, while rental yields have stagnated in comparison to investment costs.
This has led many residents to explore Mysore, which offers not just respite from urban chaos but also strong investment potential. “In the past year alone, real estate prices in Mysore have risen by over 50%,” Ahuja noted. “Yet properties remain 30-50% cheaper than in Bangalore, and rental yields are higher.” Apartments in popular Mysore neighborhoods like Kuvempu Nagar and Vijayanagar start at Rs 60 lakhs, while premium localities such as Saraswatipuram and Jayalakshmipuram see entry prices around Rs 1 crore.
Cost of living is another major draw, with expenses in Mysore estimated to be 10-20% lower than in Bangalore. Thanks to improved connectivity — particularly the Bangalore-Mysore Expressway completed in 2023 — residents can reach any part of the city within 15 minutes, making the city both livable and accessible. Larger developers have also taken note, snapping up land for long-term projects that are expected to define Mysore’s skyline over the next decade.
“This is not just a Bangalore problem,” Ahuja emphasized. “Metros like Mumbai, Delhi, Gurgaon, and Pune are facing similar pressures. While the last decade saw real estate growth concentrated in these metros, the next decade will likely see tier-2 cities emerging as the primary growth engines.”
Experts say this migration trend is reshaping India’s urban landscape. As metro cities grapple with infrastructure bottlenecks and affordability crises, tier-2 cities like Mysore, Coimbatore, and Pune’s satellite towns are positioned as attractive alternatives for both homeowners and investors looking for higher returns with lower entry costs.
Bangalore, long considered India’s tech and startup hub, is witnessing a growing exodus as residents increasingly seek relief in nearby tier-2 cities like Mysore. According to Sarthak Ahuja, an investment banker who recently shared insights on LinkedIn, the shift is being driven by the twin pressures of skyrocketing property prices and deteriorating urban infrastructure in the metro.
“Traffic in Bangalore has become so unbearable that the city is now ranked the third worst globally for congestion,” Ahuja wrote. “On average, residents spend 134 hours every year stuck in traffic.” But congestion is only one of the push factors. Rising air pollution, water scarcity, and outdated civic infrastructure are making city life increasingly unsustainable. Meanwhile, real estate prices in Bangalore have surged dramatically, making homes unaffordable for many. Apartments in prime areas now command prices that have outpaced wage growth, while rental yields have stagnated in comparison to investment costs.
This has led many residents to explore Mysore, which offers not just respite from urban chaos but also strong investment potential. “In the past year alone, real estate prices in Mysore have risen by over 50%,” Ahuja noted. “Yet properties remain 30-50% cheaper than in Bangalore, and rental yields are higher.” Apartments in popular Mysore neighborhoods like Kuvempu Nagar and Vijayanagar start at Rs 60 lakhs, while premium localities such as Saraswatipuram and Jayalakshmipuram see entry prices around Rs 1 crore.
Cost of living is another major draw, with expenses in Mysore estimated to be 10-20% lower than in Bangalore. Thanks to improved connectivity — particularly the Bangalore-Mysore Expressway completed in 2023 — residents can reach any part of the city within 15 minutes, making the city both livable and accessible. Larger developers have also taken note, snapping up land for long-term projects that are expected to define Mysore’s skyline over the next decade.
“This is not just a Bangalore problem,” Ahuja emphasized. “Metros like Mumbai, Delhi, Gurgaon, and Pune are facing similar pressures. While the last decade saw real estate growth concentrated in these metros, the next decade will likely see tier-2 cities emerging as the primary growth engines.”
Experts say this migration trend is reshaping India’s urban landscape. As metro cities grapple with infrastructure bottlenecks and affordability crises, tier-2 cities like Mysore, Coimbatore, and Pune’s satellite towns are positioned as attractive alternatives for both homeowners and investors looking for higher returns with lower entry costs.