The city of rich culture and thoughtful city planning, Mysuru, is fast cementing its name as a commercial real estate hub in Karnataka. The city has long been considered a tourist place and learning centre, yet we are now also seeing the emergence of demand and supply for modern office spaces, shopping malls, and work centres. The infrastructure development project, which includes the Mysuru-Bengaluru expressway, Metro feasibility studies, and industrial corridors development, is creating investor confidence in 2025.
The affordable land rates, high rental rates and low competition, as compared to Bengaluru, are making Mysuru a destination for businesses that are looking for a cost-effective yet strategic location. New commercial developments are being driven by the IT, education, hospitality and retail sectors. As an investor and developer, one should be very aware of the current trends, where the hotspots are and where they can be potentially expanded to provide an informed choice. Hence, let’s explore the top commercial real estate trends in Mysuru and make informed and strategic decisions in this rapidly evolving market.
Dominating Commercial Real Estate Trends in Mysuru 2025
Rise of Grade-A Office Spaces
Mysuru is experiencing an increase in demand for modern Grade-A office spaces, driven by the expansion of IT, consulting, and startup sectors. Companies and educational institutions are moving out of Bengaluru or establishing their regional offices here because of the affordable rents and strategic location. Among the major development projects, Hebbal Road, Nazarbad, and Vijayanagar are undergoing new residential and commercial developments with modern infrastructure, versatile designs, and green buildings. Office spaces are emerging as the top commercial real estate option in 2025, as investors can expect higher rental yields and long-term value appreciation.
Retail and High-Street Projects
There is growing retail demand for both mall spaces and high street shops, as the urban population of the city and the amount of disposable income are growing. The developers are targeting high-street shopping on major arterial roads and contemporary shopping malls within Vijayanagar and Chamundi Hills.
These are mixed-use projects consisting of F & B outlets, branded stores and entertainment centres which bring steady footfall. Retail real estate in Mysuru provides investors with a 10-12 per cent rental rate, which is attractive as a short-term and commercial investment.
Co-Working Spaces are Gaining Popularity
New trends such as the emergence of start-ups, freelancers and SMEs have generated a high demand for co-working and shared office spaces. Both national and local players are entering Mysuru, offering flexible, tech-based, and plug-and-play office solutions. Maximum demand is being experienced in areas surrounding educational institutions and IT hubs, including Nazarbad and Vijayanagar. The co-working spaces provide the investor with consistency in the rental returns and attract companies in search of scalable offices.
Growth of Industries and Warehousing
The industrial belt of Mysuru, such as Hebbal, Hootagalli and Mysuru Industrial Area, is experiencing an increase in demand for warehouses and logistics hubs. This trend is being influenced by the growth of e-commerce, manufacturing and FMCG companies. The developers are investing in Grade-A, technology-driven warehouses that are equipped with automated smart storage facilities. The investors will be able to have a long-term lease with high rental rates, the advantage of the Mysuru location being close to Bengaluru and the Mysuru-Bengaluru highway lanes.
Central on Sustainable and Green Buildings
The issue of sustainability is increasingly becoming important in the commercial market of Mysuru. Commercial contractors in Mysuru are embracing environmentally friendly buildings that are LEED certified, have rainwater harvesting, solar powered and use energy-efficient materials. Green buildings lure the high-quality tenants in the IT, education, and corporate sectors. Green and smart office projects are also becoming attractive to investors and tenants due to the sustainability of the construction practices that increase the property value, long-term cost savings, and compliance with environmental sustainability policies.
Appearance of Mixed-Use Developments
Combined office, retail, and hospitality projects are developing in Mysuru. These developments offer diversified sources of income, minimise the risk of vacancy and appeal to a broad tenant base. Such projects are finding good adoption in places such as Vijayanagar and Chamundi Hills. Diversified investments have the added benefit of providing a consistent stream of rental income and a long-term increase in capital value, so mixed-use developments will make a more popular investment choice in commercial real estate investment in 2025.
Best Location for Commercial Investment in Mysuru
The commercial development in Mysuru is concentrated in a few places where business is active, and there is good infrastructure and strategic connectivity. These are the best areas to invest in commercially in 2025:
- Vijayanagar- Vijayanagar is one of the most rapidly developing commercial areas of the city, where you can find modern office buildings, shopping malls, and co-working facilities. Good access to the city centre and residential facilities means a high rental rate and a steady rise in capital.
- Nazarbad- Nazarbad is home to learning institutions and IT offices and, therefore, draws corporate and start-ups. The upcoming business infrastructure of the area, excellent roads, and proximity to major highways are some of the factors that make it an attractive investment destination.
- Hebbal Road – Hebbal Road is a commercial and industrial area featuring offices, warehouses, and logistics centres. It is located strategically close to industrial areas and the Mysore-Bengaluru highway, which increases the leasing demand and property value in the long term. The area’s development is in line with Mysuru’s broader industrial growth, making it a key area for commercial investments.
- Chamundi Hills – A heritage premium area in the form of a mixed-use development, featuring retail and office space. The picturesque environment and tourist sites attract significant foot traffic, making them suitable for high-end commercial investments and boutique retail projects. The area’s development is part of Mysuru’s broader strategy to integrate tourism with urban development.
- Ashokapuram – The new central business area of Ashokapuram is an opportunity since it is close to residential and educational centres. It is apt to invest in office and retail space due to the availability of affordable commercial plots and increasing demand by SMEs. The area’s development is supported by Mysuru’s urban planning initiatives, aiming to decentralise commercial activities and promote balanced urban growth.
- Mysuru Industrial Area- The key industrial hub in the city is receiving warehouses, manufacturing plants and corporate offices. Logistics and FMCG are among the sectors with strong demand, which guarantees stable rental income and future development.
Conclusion
The commercial real estate market in Mysuru in 2025 is expected to experience solid growth due to favourable infrastructure, low property rates, and increasing demand in office, retail, co-working, and industrial hubs. Vijayanagar, Nazarbad, Hebbal Road, Chamundi Hills, and Mysuru Industrial Area are considered prime locations where investors can achieve long-term capital gains and secure rental income.
Seeking a construction company to design and build a commercial space? Brick & Bolt is a leading commercial construction company offering top-notch commercial construction services in Mysuru. Whether it is building offices, retail spaces, co-working centres, mixed-use complexes or extension office studios, we have a team of experts who can build an impressive commercial space for your business. Our turnkey solutions, end-to-end project management, updated designs, and on-time delivery guarantee efficient completion of projects without compromising on quality.
FAQs
What are the best commercial real estate places to invest in Mysuru in 2025?
Some of the hotspots include Vijayanagar, Nazarbad, Hebbal Road, Chamundi Hills, Ashokapuram, and the Mysuru industrial area, due to their connectivity and increasing demand.
What is the average commercial rental in Mysuru?
Grade-A offices and retail properties typically offer a rental yield of 8-12%, influenced by location, facilities, and the type of project.
Are co-working spaces profitable in Mysuru?
Yes, start-ups, SMEs, and flexible work culture are driving the rapid growth of co-working spaces.
Why choose Brick & Bolt for commercial construction in Mysuru?
Brick & Bolt offers turnkey commercial construction solutions, offering quality designs, transparent pricing, timely project delivery, modern building technologies, and comprehensive end-to-end project management. These factors make it the ideal choice for commercial construction in Mysuru.
Apoorva H P Achar