Just a decade ago, motorists on the Bangalore-Mysore State Highway were hard put to find a decent hotel to stop by for a cup of coffee or a quick bite. Today, they are spoilt for choice with over a dozen restaurants besides innumerable dhabas.
This apart, noted coffee chains have also sprung up, offering fresh brews round the clock. If the mushrooming eateries are a result of the rapid rise in traffic, the demand for land has pushed up prices for property along the highway.
Improved connectivity
Not only has the cost of agriculture land increased manifold in the last decade, the highway has pushed up real estate value in the towns en route thanks to improved connectivity.
“The cost for an acre near Mandya town was around Rs. 10,000 to Rs. 20,000 a decade ago (before the widening of the highway). However, it now ranges between Rs. 15 lakh and Rs. 20 lakh, and even Rs. 40 lakh, in certain areas,” Mallesh, a resident of Mandya, told The Hindu . Land in the nearby villages is dearer now, he added.
Incidentally, this boom along the highway coincided with the real estate boom of 2003-2008, after which prices dropped sharply following the economic slowdown. During the boom, land was still pricier.
Pressure on farmers
According to Karnataka Rajya Raitha Sangha leader K. Narasaraju, many farmers sold their land as prices started appreciating and returns from agriculture were far from satisfactory. “There are also several instances of farmers who have sold their land for development along the highway ending up impoverished,” he said. “When they don't get [proper] price for their produce and labour becomes a problem, they are left with little choice. Farmers are also under pressure to sell their land when the real estate prices appreciate,” he said. Land prices are more than Rs. 40 lakh an acre near Gejjalgere and other places where industrial development is taking place. Though the demand has come down in the last one-and-a-half years due to the slowdown, transactions continue to take place, Mr. Narasaraju said.
Lease or rent
Many hotel and industrial units prefer leasing or renting the premises. “Real estate prices are very high. If a highway hotel is established on land ownership basis, it would cost around Rs. 3 crore, while renting it could cost only a third and we can set up three hotels,” said K.N. Vasudeva Adiga, who owns Adigas Restaurant at Maddur.
