Finally Surat property market sees a down turn.

Surat property market sees a down turn

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.

  1. project A says:

    If you considering to buy a property or investment in property, Surat is the best option. Coming are the days Surat is going to transform into metropoliton on par with Mumbai. Number of entertainment and industrial projects have been lined up in and around Surat.

  2. BHARAT SHAH says:

    really a good news. i don’t understand the quotes of new flats in new developing area of pal compared to 10-15 yrs. old but good located, good condition flats on nearby anand mahal road area, calculated on basis of prevailing land cost of the area and prevailing construction cost of respective construction cost factored by the depreciation for old flat. old flats of anand mahal road , are at discount of 20-30% on its intrinsic cost, and new flats of pal area, are at @10% premium on its intrinsic cost. as i observed during last two-three years, pal flats’ cost are almost doubled, whereas on anand mahal road they are stagnant,whereas they were almost equal before 2-3 yrs. what does it show? your comments please. (i think, road side land cost on starting of anand mahal area is even today more or equal to land cost of prime location of pal area.)

  3. Jig says:

    Hello Mr Bharat,
    I think you are the one on JagoInvestor too. So i was confused between Equity & Real Estate. Now what should be decision while we are seeing this downturn.( though little).

  4. Nikhil Balar says:

    None of the buisness in india paying of nobody have enough liquidity and now every body is hoding property to get profit ,where si buyer?All want to sell if they get profit,so possibility is cool down property up to 50%,so now time is over and you must wait to cool and than take opportunity will be better,

  5. P.Giri says:

    As i am going to buy a flat in Vesu,Surat area,Can someone suggest me what is the reasonable rate as per to days valuation? Is this proper time to buy or should i wait ?

    • MEHUL says:


  6. Jariwala says:

    is olpad an nice place for 5 to 10 years investment ?????// plots ???

  7. ak says:

    is barbodhan an nice place for long term 5 years investment in Residential plots ???

  8. anita says:

    i want to buy a flat in vesu (surat). but i want to buy it through EMI. so that i can complete the entire amount within 3 years so, kindly guide me any constuction company who will help me

    • Shain says:

      choose location 50 to 100 mt from road. Vesu will be having crowded and noisy road in short run. for EMI always best to compare the bank vs builder(you may end up pay more if you want to pay in installment, for ready to move property.) You may choose under construction site, aiming to complete in two years. In this case you may get good deal. I am based at mumbai and invested in a few project in Surat. Its comparatively wise choice in terms of city.

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