The Government of Karnataka wants to ease the pressure on Bengaluru’s infrastructure and is asking investors and industry to expand into other Tier-2 cities in the state. We give you the lowdown on the top cities that are worthy alternatives to good old Bengaluru and key government projects that will promote growth.

1 Mysuru

The former royal kingdom is fast gaining favour among NRI and local investors, as well as homebuyers from out of state. Prices for apartments in Mysuru start at Rs 4,000 per square foot and have been giving investors returns of 12% over the last 2 years. Consultants say Mysuru can become to Bengaluru, what Pune is to Mumbai and all thanks to Bengaluru’s high commercial leasing activity. Top micro-markets include KRS road, Siddhartha layout and JP Nagar, apart from homes on the Bangalore-Mysore Highway.

Things to watch out for:
Electronic System Design Common Facilitation Center coming up soon

2 Mangaluru

It’s been a hotspot for tourists, but Mangaluru is gaining popularity as an industrial hub. The city is well connected by road, rail and air with two central railway stations as well as an international airport. IT players present here include Infosys and Mphasis. You can buy homes here starting at Rs 3800 a square foot, but don’t expect huge returns as the city has only been giving 5% annualised returns over the past couple of years. Key micro-markets in include Kulai, Thokottu and Mannagudda.

Things to watch out for:
Part of 100 Smart Cities List
Government planning to setup an IT SEZ, Marine Biotech Park and General Engineering SEZ.

3 Hubli-Dharwad

The twin cities of Hubli – Dharwad have good road, rail and air connectivity with connectivity to Bengaluru, Mumbai and Pune. Dharwad will also house Karnataka’s first IIT and is a growing startup hub. Popular micro-marikets in Hubli-Dharwad include Vidya Nagar and Gokul Road. While you can buy projects starting at Rs 10 lakhs, this area is still largely dominated by plots and plotted development.

Things to watch out for:
Part of 100 Smart Cities List
Aryabhatta Park in Hubli
Auto Cluster and Agri-Biotech park coming up in Dharwad

4 Belagavi

Belgaum, also known as Belagavi shares borders with both Maharashtra and Goa and is famous both as a trading hub and for its auto-parts manufacturing industries. It is also a hub for aerospace, with a 300 acre SEZ for aerospace components manufacturing. Belagavi is also home to Karnataka’s famous Viswesvaraya Technological University . Popular micro-markets include Nanwadi, Tilakwadi and Ganeshpur. You have the option of investing in both apartments and plotted developments here.

Things to watch out for:
Part of 100 Smart Cities List
Aerospace, Auto Cluster,Machine tools and heavy Engineering Investment Opportunities being planned in the city

5 Davanagere

Lying 264 kilometres away from Bengaluru, Davanagere is today known as a growing agricultural and industrial hub. International food conglomerate Cargill recently inaugurated a Rs 630 crore corn milling plant here. You are largely limited to plots and plotted development in the city and popular micro-markets include Nittuvali, Mandipet, Kuvempu Nagar and Hadadi Road.

Things to watch out for:
Part of 100 Smart Cities List
Nodal Point in the Bengaluru-Mumbai Industrial Corridor

Lakshmi Sivadas, Reporter, NDTV