1. In Surat the real estate deals still has 20-50% cash component. Thus there are zero incidents of people going default for any kind of property loans.
2. The price of property in Surat is still way lower than most of the developing cities of India in spite of Surat having higher GDP and increasing number of migrants then those cities.
3. There are great number of NRI’s who belong to Surat or nearby villages. These people have also started keeping a home in Surat which they can use when they are visiting Surat for holidays, family functions and other reasons.
4. Being a commercial hub the commercial properties have always been a safe bet
5. For residential properties the ratio of real user and investors is too low compared to other cities of India, while in commercial properties it’s even lesser
6. Big brands of real estate have not penetrated in Surat yet due to a bigger portion of cash component in land transactions and other reasons; thus only local players which are comparatively smaller with lesser number of towers only prevail in the market. Thus there isn’t too much over supply.
7. A big market for week end home or farm house prevails in Surat as there is a huge pool of rich people who will opt for these second homes.
8. The people of Surat has always been enterprising and thus old industries keep on flourishing and new industries keep on developing which increases the skilled and un skilled people from different parts of the country.
9. Surat is the only City in India with practically zero un-employment. In fact it’s always in short of work forces in various industries.
10. Lately the Airport has started picking up with new flights and thus many new investments will continue to come to Surat
11. Finally Surat belongs to the State of Gujarat which has the most development oriented chief minister in whole of India.
Other Facts of Surat which makes Surat prospective for Real Estate Investment
*The average annual household income is Rs 4,57,000 – the highest in the country.
* Surat has around 10,000 diamond cutting and polishing units which have a total daily turnover of over US$ 10 million. 1.5 million people employed in this industry.
* 1 million people are employed in the textile based industries of which 80% are from outside Surat.
* From 2001 to 2011, in 10 years, the population of the city has gone up by 20 lakh or 71%. There are 20 lac migrants from Uttar Pradesh, Rajasthan, Bihar, Madhya Pradesh, Orissa, Maharashtra and even the southern state.
* GDP of Surat is around 11-12% since last 7 years
Visit http://en.wikipedia.org/wiki/Surat for some other information about Surat.
No matter how hot you find a property; you should still go by business fundamentals. Research hard! After all it’s your hard earned money and you should get the best from it.
Please share your views on the positive and negative sides of Surat real estate markets below.