u/Intelligent_Pound_79

Considering this as an investment..

Have seen a few projects by Prestige, Adarsh, Vaishnavi, Sunadhura, Total Environment, etc

Is there an advantage of one over other?

Since these are all plotted - isn't the end product going to be similar?

What are your thoughts?

Background

Have been investing and trading in real estate for 5-6 years. I currently hold land in Udupi, so I have some familiarity with the Udupi market. Currently, evaluating investing in a few 1 or 2 BHKs in Manipal specifically targeting student demand.

Why Manipal is interesting to me

• Rental yields are meaningfully higher than any Indian metro I've looked at
• Manipal University is expanding seats every year, which to me signals a structural demand-supply gap for quality modern housing
• Most existing student accommodation is dated PG-style stock, a well-designed apartment could command a real premium

What concerns me

• New supply is entering the market; projects like Grasslands Lakeside with 600-700 units, but these appear to be family/multipurpose housing rather than student-focused. Does incoming supply of the wrong product type actually affect appreciation and resale, or is it largely irrelevant to the student segment?
• Liquidity is my biggest worry. Who is the resale buyer in a market like Manipal?

My specific questions

1. Appreciation: Is 9-12% YoY realistic over a 2-3 year post-possession hold, or is rental yield the only real return on offer here?
2. Liquidity: How hard is it to exit a 1/2 BHK in Manipal? Is there an active resale market?
3. Demand signal: Is university seat expansion a reliable enough thesis, or should I be stress-testing risks like competing hostels, university-built housing, or the shift toward online education?
4. Supply: Does large incoming supply - even if it's not student-targeted - still put a ceiling on yields and prices?

Specifically looking for inputs from people who've invested in Manipal or other Indian university towns - not a general metro vs Tier-2 debate.

I'm a 30y old looking for investment options in Manipal, possibly with good rental potential.
Are there any suggested projects?
Looking for a total investment size of INR 1.5-2 Cr.