Most people cannot afford to invest in properties of tier I cities such as Delhi, Mumbai and Bangalore because of the high prices of property. Migrants to these cities often look for avenues to invest back in their homeland which is why property prices in Patna, Varanasi, Meerut, Ahmedabad, Surat etc. are on the rise. These tier II cities are fast coming up as centres of commerce because both the central and the state government are taking an initiative in their development. A lot of them such as Kochi, Varanasi etc. are being developed into smart cities, replete with IT and manufacturing hubs and metro railway connectivity. Expats are mostly interested in investment in these areas.
Till some time ago, Surat was a sleepy town of Gujarat but off late, the city has turned into a hub of sorts for diamond and textile merchants. Almost 92 percent of the diamonds in the world are cut in Surat and there are many cotton mills located in the city. It is one of the fastest growing tier II cities and its real estate has shown a steady increase in property prices. A lot of new age residential housing property in Surat are being developed that would cater to a wide budget range. Location-wise, a lot of areas have seen an increase in property prices. None of Surat’s micro markets have witnessed a drop and prices and some markets have even gone on to witness a rise of 10 to 12 percent, despite a sluggish economy. The growth figures of Surat have been rising steadily every year. In the past few years, residential prices in Surat have doubled almost and rents for commercial properties have gone up by more than forty percent. Investors have managed to realize their profits within 8 to 10 months of making the investment. The expansion of the retail, IT and indigenous tertiary and secondary industries hascreated excess job opportunities in Surat which is driving up real estate in the city. The affordability of land and availability of large land parcels along with the demand has fuelled up builders to develop residential communities in this area as well. Infrastructure in Surat is improving every year and with the availability of manpower, the real estate sector of Surat is being fuelled.
Another reason which is fuelling up development of property in Surat is the SNIA or SuratNavasari Industrial Area which has been proposed. This industrial area shall be developed by the DMIC or Delhi Mumbai Industrial Corridor. The development of industries will lead to not only commercial and retail development but also that of housing in the form of luxury flats, integrated townships, commercial towers and shopping malls. These real estate developments have also contributed to the increase in the price of property in Surat. Localities such as Hazira Road, Piplod, Adajan, Green City Light and Piplod have been the most transacted residential neighbourhoods in the past few years. The increase in price of these properties has been to the tune of 20 percent almost. The fact that luxury flats can be bought in this area for affordable prices has also brought in investors and buyers. Capital values in these areas are currently around Rs 4000 for a square foot.
The commercial sector of Surat is also growing and several companies have decided to shift base to Surat from Mumbai or Ahmedabad because of lower operational costs, good connectivity and availability of man power. The SMC or Surat Municipal Corporation has also taken good measures for the improvement of the transport link of the city along with civic amenities. Surat is one of the fastest growing cities within the Tier II bracket. Most NRIs have expressed interest in investing in properties in Surat.
The steady increase in prices of residential properties indicates healthy market. Larger numbers of properties were sold in the central districts of Surat because a large number of the local populace around the Fort area abandoned it for South West and West Zone. This has led to a rapid rise in property in Surat prices as these areas are being converted into commercial ones. With the real estate market of Mumbai and its peripheral areas becoming saturated, the only other area which can take on developed in located on the western corridor. The growth of Surat is guaranteed as a lot of black money from the textile and diamond industry is pumped into real estate for legalization. Even at a time when Ahmedabad is showing slowed down growth, Surat is developing at a rapid pace.
The growth of tier II cities such as Surat is what the government wants too as it would ease the pressure on larger cities and also prevent the large numbers of migration that take place every year. Surat is opening up to foreign brands for clothing and food and a number of malls are coming up in the area. Builders too are taking an interest in the property market of Surat and therefore providing flats which are replete with amenities. Some of the best builders are taking up projects in Surat and they are offering high quality amenities also such as swimming pools, indoor games rooms, landscaped gardens, cricket and football grounds etc. The affordable price of luxury in the city is attracting buyers to it. Real estate conferences held in the United States have also had buyers participate who were interested in Surat. A large population of NRIs are Gujaratis and they are interested in investing in their “soil”.
Property prices in Surat are expected to increase in the coming years too as commerce and trade expands. The infrastructure building works such as widening of roads, laying of sewerage pipes etc. are continuing in the city which are giving builders confidence about the real estate market. To buy property in Surat, you can go online on real estate websites and look up the property listings. Alongside listings, you can also participate in discussion forums and live chats to know more about these kinds of properties.
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| Property in Surat |
Another reason which is fuelling up development of property in Surat is the SNIA or SuratNavasari Industrial Area which has been proposed. This industrial area shall be developed by the DMIC or Delhi Mumbai Industrial Corridor. The development of industries will lead to not only commercial and retail development but also that of housing in the form of luxury flats, integrated townships, commercial towers and shopping malls. These real estate developments have also contributed to the increase in the price of property in Surat. Localities such as Hazira Road, Piplod, Adajan, Green City Light and Piplod have been the most transacted residential neighbourhoods in the past few years. The increase in price of these properties has been to the tune of 20 percent almost. The fact that luxury flats can be bought in this area for affordable prices has also brought in investors and buyers. Capital values in these areas are currently around Rs 4000 for a square foot.
The commercial sector of Surat is also growing and several companies have decided to shift base to Surat from Mumbai or Ahmedabad because of lower operational costs, good connectivity and availability of man power. The SMC or Surat Municipal Corporation has also taken good measures for the improvement of the transport link of the city along with civic amenities. Surat is one of the fastest growing cities within the Tier II bracket. Most NRIs have expressed interest in investing in properties in Surat.
The steady increase in prices of residential properties indicates healthy market. Larger numbers of properties were sold in the central districts of Surat because a large number of the local populace around the Fort area abandoned it for South West and West Zone. This has led to a rapid rise in property in Surat prices as these areas are being converted into commercial ones. With the real estate market of Mumbai and its peripheral areas becoming saturated, the only other area which can take on developed in located on the western corridor. The growth of Surat is guaranteed as a lot of black money from the textile and diamond industry is pumped into real estate for legalization. Even at a time when Ahmedabad is showing slowed down growth, Surat is developing at a rapid pace.
The growth of tier II cities such as Surat is what the government wants too as it would ease the pressure on larger cities and also prevent the large numbers of migration that take place every year. Surat is opening up to foreign brands for clothing and food and a number of malls are coming up in the area. Builders too are taking an interest in the property market of Surat and therefore providing flats which are replete with amenities. Some of the best builders are taking up projects in Surat and they are offering high quality amenities also such as swimming pools, indoor games rooms, landscaped gardens, cricket and football grounds etc. The affordable price of luxury in the city is attracting buyers to it. Real estate conferences held in the United States have also had buyers participate who were interested in Surat. A large population of NRIs are Gujaratis and they are interested in investing in their “soil”.
Property prices in Surat are expected to increase in the coming years too as commerce and trade expands. The infrastructure building works such as widening of roads, laying of sewerage pipes etc. are continuing in the city which are giving builders confidence about the real estate market. To buy property in Surat, you can go online on real estate websites and look up the property listings. Alongside listings, you can also participate in discussion forums and live chats to know more about these kinds of properties.
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