Coastal realty faces shortage of 3BHK apt

Mangaluru: Coastal real estate stakeholders are flagging a widening gap between what homebuyers are seeking and what developers are delivering, with the sharpest shortfall emerging in 3BHK apartments priced at Rs 1 crore or below, even as parts of the 2BHK and premium segments show signs of oversupply.DB Mehta, president-elect of CREDAI Karnataka, said buyers’ preferences have decisively shifted towards larger homes after the pandemic, but new launches have not matched that change. “Most acute mismatch is in the sub-Rs 1 crore 3BHK category, where demand remains strong but inventory is limited. Similar squeeze is visible in the 2BHK segment, where demand is concentrated below Rs 65 lakh, but supply in that price band is thin,” he said.Despite these shortages, Mehta said the market is simultaneously carrying excess inventory in 2BHK configurations overall, indicating that much of the available stock is priced above what most buyers are willing to pay. The result, he said, is a market where headline supply appears adequate, but the product mix is misaligned with prevailing budgets, leading to slower movement in certain projects and faster absorption in narrow set of price points.Mehta also pointed to the premium apartment segment, which saw strong traction over the last four years in the Rs 1.5 crore to Rs 4 crore range, driven largely by high-net-worth Individuals and non-resident Indians (NRIs). He said that segment is expected to cool in 2026 as supply has risen faster than absorption, increasing the likelihood of longer selling cycles and sharper competition among projects.Rents for standard 2BHK and 3BHK units have risen by about 15% in 2026, he added, and attributed the increase to shortage in commonly sought configurations and limited availability in preferred localities.Stakeholders highlighted sharp micro-market differences across the city. Supply remains limited in Falnir, Attavar, Valencia, Jeppu and Mannagudda, while Kadri, Bejai and Urwa are seeing oversupply, reinforcing concerns that both location choices and unit mixes are out of sync with buyer preferences.Vinod Pinto, president of CREDAI Mangaluru, said apartment prices within city limits are rising due to land scarcity and higher raw material costs, pushing homes out of reach for many. “Land availability is constrained in the core city, while many buyers are reluctant to move to the outskirts where land is cheaper. Developers are also unable to plan large projects outside Mangaluru City Corporation limits because basic infrastructure like drainage is inadequate. If the govt improves drainage, water supply and connectivity, buyers are willing to shift outward,” Pinto said.