Mangaluru’s real estate market is becoming one of the top investment spots in coastal Karnataka for 2025–2026.
Prime areas like Kadri, Bejai, Kankanady, and parts of Derebail have seen steady price increases of 8–12% every year over the past three years. In some smaller areas, prices have gone up by 15–20% in the last 24 months. Understanding these reasons helps buyers and investors make smarter choices that will work well in the future.
Here are the real reasons behind the rising property prices in Mangaluru’s best areas.
Table of Contents
Land Scarcity in Established Neighbourhoods
The biggest reason behind the price rise in Mangaluru is the lack of available land in the best areas.Places like Kadri, Bejai, and Kankanady are almost fully developed, with very few large plots left. New land for development is really limited.
This shortage has created a big gap between supply and demand.
Whenever more people want to buy, like families upgrading, professionals moving in, or NRIs returning, prices jump quickly because there are not enough houses available. For example, in Kadri, the average flat rate reached ₹7,050 per square foot in early 2026. That’s a 41% increase over the past five years and a 22.6% rise in the last three years (data from 99acres, February 2026).
Projects like Udbhav Chinmaya, which only has 40 units, benefit greatly from this scarcity.Once all units are sold, there’s no similar low-density property in that exact spot, which makes the resale value go up.
Major Infrastructure Projects
Another big reason for the price rise is the progress of large infrastructure projects.These developments are boosting property values in prime areas:
– The expansion of Mangaluru International Airport, including a new terminal and runway upgrades, which improves connections to Gulf countries and major cities in India.
– The widening of NH-66 and the construction of flyovers in Kottara Chowki, Kuloor, and Surathkal, expected to be finished by mid-2026. This will reduce travel time and ease traffic problems.
– Mangaluru’s Smart City initiatives, which involve investments over ₹2,400 crores, including new bus terminals, a control center, and better city infrastructure.
– The new IT Park in Derebail, worth ₹135 crores, which will attract tech professionals and increase rental demand around Kadri and Bejai.
Properties close to these developments are seeing the fastest price growth. Kadri and Bejai, being in the center, are getting most of the benefits from these projects.
Strong and Steady Demand
Unlike markets where prices rise purely because of speculation, Mangaluru’s price increases are because of real demand from people who need homes:
– Medical and education centers — thousands of students, doctors, and hospital staff need homes near schools and hospitals.
– Growth of the port and industrial sector — steady demand from port workers and related businesses.
– NRIs returning — many NRIs are coming back to Kadri and Bejai because of the coastal lifestyle and emotional connection.
– Local professionals — people working in IT, banking, and other services prefer the peaceful, central locations of Kadri and Bejai.
This consistent demand keeps vacancy rates low and rental income healthy (4–6% in Kadri and Bejai), which helps both increase the value of the property and generate income.
Limited-Unit Projects Appreciate Faster
One of the clearest reasons for price rises in 2025–2026 is that projects with a limited number of units and low density perform better than large high-rise buildings.
Why?
– Fewer units mean higher exclusivity and a higher perceived value.
– They make better use of amenities and have lower management costs.
– They create a strong community feel and higher resident satisfaction.
– Quick sell-out creates artificial scarcity even before the project is finished.
In Mangaluru, low-density gated communities in Kadri and Bejai have shown 12–18% higher price growth than mass high-density projects in the same period (Anarock and local registration data).
Coastal Lifestyle
Many buyers, especially NRIs and returning locals, are willing to pay more for the unique lifestyle that Mangaluru offers — beaches, pleasant weather, temples, greenery, and strong community ties.
This emotional connection is often overlooked but is very real.Kadri stands out here: it has a peaceful atmosphere, is close to the Kadri Manjunatha Temple and Kadri Park, and still has good connectivity.
This “peaceful yet connected” combination creates strong, long-term demand that supports price increases.
Kadri: ₹6,500–₹8,200 per sq ft (3–4 BHK premium flats)
Bejai: ₹5,850–₹8,350 per sq ft
Kankanady: ₹5,500–₹7,500 per sq ft
Derebail: ₹4,800–₹6,500 per sq ft (more affordable entry)
Conclusion
The real reasons for the price increases in Mangaluru’s prime areas are scarcity of land, infrastructure growth, consistent demand, a preference for low-density projects, and the strong emotional appeal of coastal living.
These factors are working together in 2025–2026 to create one of the best investment opportunities on the west coast.
Udbhav Chinmaya in Kadri is a perfect example of all these factors: only 40 exclusive units, a prime yet peaceful location, modern amenities, Vaastu-compliant design, and strong price growth potential in one of the most sought-after neighborhoods in Mangaluru.
With very few units left in the pre-launch phase, the chance to own in this high-potential area is quickly disappearing.
Ready to find out more about smart property investment in Mangaluru?
Enquire about Udbhav Chinmaya today for full RERA details, the latest floor plans, pricing (starting at ₹1.48 Crore*), and a 360° virtual tour.
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