Infrastructure Drives Real Estate in Surat

When the entire nation is struggling with low sales volume, a city that seems unaffected by the slump is the glittering city of Surat. Also known as Suryapur, Surat was ranked fourth among the fastest developing cities in the world by a global survey conducted by the City Mayors Foundation. Located at a distance of 306 km from the state capital of Gandhinagar, the pace at which Surat is developing is nothing short of remarkable. The city records persistent housing demand from both the end-users and investors. This is also reflected in the capital appreciation, which is a key determinant of returns in the real estate domain. “The property values for residential property in Surat records an average appreciation of 10-15 per cent on a y-o-y basis. Due to this, every year the number of new launches are also increasing,” informs Jitendra, a city-based broker, Property Factory. With buyers interests inclined towards 3BHK units, the ticket size ranging from Rs 30-40 lakh is most preferred in the city, clearly indicating the affordability aspect. So, what has helped the city score positive on the real estate graph? Well, Surat’s real estate market has multiple growth drivers at play. It all started in 1970s, when Surat-based diamond cutters began exporting stones to the US for the first time. As the city got popular for diamond cutting, soon textile and corporate industries started setting up their base here. And then Surat also jumped to the IT/ITes bandwagon. These industries have not only enhanced the job scenario in Surat, but has also fueled the housing demand. Infrastructure upgrades On the infrastructural front, Surat is way ahead of other cities. Recently, Surat Municipal Corporation (SMC) approved 680 construction plans, which is double than the total approvals of last three years. Several other infrastructure initiatives also deserve a mention here. The Tertiary Water Treatment Plant, first of its kind in India, was thrown open to the residents on February 14 of this year. This, in addition to solving the water woes, has also helped the city to efficiently use and reuse water. The city is not far behind in using technology. Surat also boasts of computerised water distribution system and drainage system along with the sewage treatment plant, which transforms waste into energy. Apart from these, Surat also scores positive on social and civic amenities. Good educational institutions, healthcare centres, banks, restaurants, everything is available.

Have you ever heard of free public transportation in India? Well, commuting in Surat via Bus Rapid Transit System (BRTS) is free of cost. That’s not all. Safety is another aspect that has been given utmost importance by the city planners. With a mammoth budget of Rs 175 crore, CCTV project was implemented. Already functional in certain areas of the city, soon it will be implemented in other areas as well. Another key economic driver is the proposed Surat Navasari Industrial Area (SNIA), which will be developed along the Delhi Mumbai Industrial Corridor (DMIC). These will have developments such as integrated townships, luxury apartments, shopping malls, and commercial towers. Once completed, this will further increase the property values in the city. Property values “Localities such as Adajan, Vesu, Dummas Road and Piplod were the most transacted residential localities in past 8-12 months. These areas recorded a significant rise of 15-22 per cent during this period,” says Jitendra. In addition, properties on the main road commands higher value, however as one inch towards the interior, values depreciate, adds Jitender. As far as BHK configuration is concerned, 3BHK units are most preferred, closely followed by 2BHK units. Residential house of 1,200-2,200 sq. ft. are available within Rs 2,300-3,600 per sq. ft. Thus, a 1,200 sq-ft house, for instance, is available at about Rs 27 lakh. As per the plots, the values range between Rs 5-10 lakh for 80-100 sq. yd. plot. By 2020, Surat is projected to be the largest city in Gujarat. As political stability is a great motivator for investors, sales are likely to accelerate even more after the general elections. Truly, Surat is growing by leaps and bounds. Thus, with pro-active government coupled with realistic property values, the city is all set to give a tough competition to the many metro cities! Thus, investments in the current scenario are expected to fetch good returns in the times to come! Source: CommonFloor.com For Latest Updates on Real Estate Updates, Property News and Cities Infrastructure Developments Visit: http://www.commonfloor.com/guide

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