Surat Realty Market Sees Upward Trend
Surat has been emerging as one of the top tier-II real estate markets in India for the past couple of years. This is the second major city in Gujarat to make an entry into the list of emerging real estate markets across the country especially in the residential real estate segment. The city has witnessed an average of at least 10-12% increase in prices year on year in the last couple of years.
Surat shows positive trend
According to a Residex released by the National Housing Bank (NHB), property values have been constantly increasing across Surat. Investors are already witnessing profits within a year. Commercial rentals too have been steadily increasing.
There are several key drivers for this rapid growth. These include expanding IT sector as well as the retail and local industries that are continuously improving the job opportunities in the city. These rising job opportunities have increased immigration which have created demand in the residential real estate sector. Improving infrastructure, connectivity and affordable housing are other key drivers for high demand in the real estate sector. Highways such as NH-8 run through the city which connect it to other cities such as Delhi, Vadodara, Ahmedabad and Mumbai.
The Surat-Navsari Industrial Area (SNIA) on the Delhi Mumbai Industrial Corridor (DMIC) is an important economic driver for the city’s real estate as it will cascade real estate developments such as luxury apartments, integrated townships, commercial establishments and shopping malls in the city. The upcoming BRTS on University Road is also expected to be a big time money spinner for the city’s residential real estate.
Surat witnesses hike in property value
The city has witnessed good hike in property values in several locations. Some of the key localities in Surat that have seen a good hike in property values include Vesu, Adajan, Hazira Road, Piplod and Green City. The areas witnessed an average increase of at least 50-55% in the last three years. Last year saw a price hike of 12-22% in property values. The approximate property price of an apartment in Surat is between Rs. 2,500-4,000 per sq. ft.
An affordable pricing of properties coupled with good infrastructure growth as well as connectivity has led to Surat becoming a fast growing tier-II city in India.
