Surat’s real estate market on upswing after one and half years
Surat real estate market is on upward direction after an 18-month lull, as lots of demands for housing projects are being witnessed at Katargam and Varachh. A famous developer has earlier got very few buyers for flats in his scheme. But now the situation is going to change as the real estate market conditions are improving.
Mr. Velji Sheta, Surat Builders Association (SBA) president, says that the real estate market in the city has started to see an upswing after nearly 18 months. The increased requirement for flats at Katargam and Varachha are primarily responsible for this rise in cost by at least 25 per cent in each unit.
As per the expert a good rainy season in Saurashtra during last year has brought enough money into the market. Another reason is the positive approach regarding the new government to take over in New Delhi in May.
Mr. Sheta, says that at least Rs 6,000 crore will come to Surat from the people in Saurashtra, who are looking to invest their money in properties at Ved Road, Katargam and Varachha.
A developer says that the people of middle class feel a people-friendly government would come at the center. This is motivating them to invest their money in properties. They also have customers who invested their total earnings from agriculture into property.
A property that earlier sold at Rs 2,500 per sq feet at Katargam was currently selling at Rs 3,500 per sq feet. The cost of a flat at Varacha has increased from Rs 2,200 per sq feet to Rs 3,000 per sq feet.
Mr. Labhu Lakhani, a developer, says that the rates of properties have gone north and this has not stopped the people from investing their money in real estate sector. The people from Saurashtra have enough money to purchase property in Surat. They want to have flats in Mumbai but there the price is prohibitive. Surat is distance wise close to Mumbai so they are happy to invest in the city of Diamonds.
The officials of Surat Municipal Corporation’s town planning department informed that at least 25, 000 new flats in 300 new projects are scheduled to come up at Katargam and Varacha in the next 24 months.
Mr. Niraj Tomar, Gujarat in-charge, Jones Lang LaSalle (JLL), says that this is a small phenomenon typical to some markets primarily due to the local factors.
Source: The Times of India
Gujarat, jll, Jones Lang LaSalle, Katargam, Mumbai, Real Estate Sector, Saurashtra, SBA, Surat, Surat Builders Association, Surat Municipal Corporation, Varacha, Velji Sheta
