Surat property market sees a down turn
After Ahmedabad, Rajkot and other cities of Gujarat, it’s the Surat that is witnessing the price drop finally. In the industry the downturn has been witnessed since last 6 months but still due to very high holding capacity of the builders and the investors the prices had not gone down in Surat.
Mr. Seth an investor who had kept the flat for sale in the Palanpore canal area in Adajan informed us that he was not able to sell the flat even at the booking rate and now after 14 months from the booking date he is ready to sell the flat at just Rs. 100 plus. This is quite unheard in the Surat real estate where by in such duration you used to get a hike of at least 30-40%.
The same is the case with Vesu, Althan. You can feel the pain from the body language of the people sitting in the booking offices. Gone are the days when people made Rs. 200-500/ Sq feet in 2-3 months by just paying the token money and transferring the diaries.
Because of the constructed properties not getting sold, there is a pressure on the land rates in TP area too. TP 9 and TP 10 at Adajan had seen the final plot land price at 35 thousand / vaar. The same is today available at 28 thousand – 30 thousand and if the payment is within 30 days one can get it well under that.
Note: Don’t go by total number of dastavej done in Surat compared to last year. It is surely more, but you need to consider the number of new projects starting compared to 1 year back.
The outside city plotting which were selling like hot cakes has seen a big pause. The price of plots has been not moved since last 2 years. A very esteemed project in Palsana started its booking at 6500/Vaar before 18 months. Even today all the near by weekend plots are of same price. It’s better to book a flat rather than to invest in such long distance plots. We inform our viewers to not go by big banner ads. Have a ride on Umbhrat road, there are so many almost scrap projects.
One of the main reasons of this downturn is the over production of properties. Since ages real estate was always hot cake. But people didn’t realize that previously the number of new projects where extremely limited while since last 3-4 years every tom and dick has come up with small and big projects. There are few projects with 40 plus buildings and many other with 20 plus buildings. And they are struggling to sell it.
This is finally good news for Surat real users. A discount of Rs 200-300 might be a handsome save for the real user.
Word of Caution:
You might be given fancy rates when you meet the builder and it has been witnessed that the same project might be given at 25% lesser price to other users. Thus bargain hard or consult a proper real estate agent who is aware with the ins and out of the area.
Do check the resale price by investors, you might most likely get a lot better deal there.