Karnataka’s coastal city of Mangaluru is rapidly emerging as a preferred destination for IT firms and professionals, positioning itself as a viable alternative to Bengaluru amid rising costs and infrastructure challenges.
From coastal city to ‘Silicon Beach’
Often referred to as India’s “Silicon Beach,” Mangaluru is witnessing a surge in technology investments and talent migration. The shift is being driven by a combination of lower living costs, government incentives, and improving infrastructure.
Investment banker Sarthak Ahuja highlighted that the city’s growth is being fuelled by Global Capability Centres (GCCs) and R&D units set up by multinational firms such as Bose Corporation.
Bengaluru’s challenges push shift
For decades, Bengaluru has been India’s technology capital. However, increasing traffic congestion, water shortages, and soaring real estate prices are prompting companies and professionals to explore alternatives.
With key IT corridors nearing saturation, concerns around quality of life and commute times are influencing relocation decisions.
Growth backed by talent and incentives
Mangaluru’s IT workforce is expected to grow from around 20,000 to nearly 2,00,000 in the next eight years. The city’s IT revenues have already jumped from ₹3,200 crore to nearly ₹5,000 crore in just two years.
The region produces nearly 10,000 engineering graduates annually across 25 colleges, strengthening its reputation as a dependable talent hub.
Government support has played a crucial role, with incentives including rent reimbursements, electricity duty waivers, R&D subsidies, and telecom cost reductions encouraging companies to set up operations.
Lower cost of living attracts professionals
Cost advantages are a major draw. Housing in Mangaluru is significantly more affordable, with 2BHK apartments ranging between ₹50 lakh and ₹1 crore. Monthly family expenses are estimated at ₹80,000–₹90,000, compared to ₹1.3 lakh or more in Bengaluru.
Office rentals are also around 30% lower than in major metro cities, making it attractive for businesses and startups.
Better quality of life and mobility
Described as a “15-minute city,” Mangaluru offers shorter commute times, less congestion, and improved road conditions. Its coastal setting and proximity to the Western Ghats further enhance its appeal.
Lower employee attrition rates and improved work-life balance are also contributing to its growing popularity.
Reverse migration gains momentum
The city is witnessing a reversal of the long-standing migration trend, with professionals returning to work closer to home. Companies like Infosys have expanded their presence, while several firms have crossed the 1,000-employee mark.
This shift signals renewed confidence in the region’s economic potential and long-term sustainability.
A new chapter in India’s tech growth
While Bengaluru continues to dominate in scale and global visibility, Mangaluru is carving a niche with efficiency, affordability, and livability.
As India’s technology ecosystem decentralises, Mangaluru’s rise reflects a broader transformation—where quality of life and sustainable growth are becoming just as important as scale.