Bengaluru, India’s famed Silicon Valley, is facing an exodus. Fed up with the city’s severe congestion and skyrocketing cost of living, residents are increasingly looking for relief in nearby Tier-2 cities, with Mysore emerging as the top destination.
According to investment banker Sarthak Ahuja, who recently shared his insights on LinkedIn, the twin pressures of unaffordable housing and collapsing urban infrastructure are forcing the shift.
Bengaluru’s Broken Infrastructure
The daily grind in Bengaluru has become nearly unbearable. Ahuja notes the city is now ranked the third worst globally for traffic congestion, with residents wasting an average of 134 hours every year stuck in jams.
But traffic is only part of the problem. Rising air pollution, critical water scarcity, and outdated civic infrastructure are making life unsustainable for many. Furthermore, the housing market has become unattainable:
- Skyrocketing Prices: Real estate prices have surged dramatically, outpacing wage growth.
- Affordability Crisis: Homes in prime areas are now unaffordable for many working professionals.
Mysore: The Affordable Alternative with High Returns
This pain point for Bengaluru is a massive opportunity for Mysore. The city offers residents not just a 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. Crucially, even after this sharp rise, properties in Mysore remain 30–50% cheaper than in Bengaluru, and they offer higher rental yields.
- Affordable Housing: Apartments in popular Mysore areas like Kuvempu Nagar and Vijayanagar start at around ₹60 lakhs.
- Lower Cost of Living: Overall expenses in Mysore are estimated to be 10–20% lower than in Bengaluru.
- Seamless Connectivity: The new Bengaluru-Mysore Expressway (completed in 2023) means residents can quickly access the city, making Mysore both livable and highly accessible.
Larger developers have already noticed the trend, rapidly acquiring land for major long-term projects, signaling confidence in Mysore’s future growth.
Reshaping India’s Urban Landscape
Ahuja warns that this isn’t isolated to Bengaluru. “Metros like Mumbai, Delhi, Gurgaon, and Pune are facing similar pressures,” he emphasized. He predicts a major shift: while the last decade saw real estate growth concentrated in metros, the next decade will likely see Tier-2 cities emerge as the primary growth engines.
This migration is actively reshaping India’s urban landscape. As large cities struggle with infrastructure bottlenecks and affordability crises, well-connected Tier-2 cities like Mysore, Coimbatore, and Pune’s satellite towns are positioned as highly attractive alternatives for both families seeking a better lifestyle and investors looking for higher returns with lower entry costs.