The impact of new proposed TP (Town Planning Scheme) on the Outer Ring Road

Surat Outer Ring Road Proposed Plan

Surat Outer Ring Road Proposed Plan

Firstly if you think that this is a Hot News, then you are wrong. People in the industry know this since more than 2-3 years now that something like this is in planning phase.

So what will happen with this?

The current farm land price falling in 500 meters will increase?
Answer: Wrong

The price has already increased in last 2 years. Of course the appraisal is going to be there all the time, but the real hike has been already taken by those smart and informed investors.

The price per Vingha in this new TP land is no less than 1.5 Crore INR as of today all around Surat.

So you can consider that price per Vaar is around Rs. 5280 / Vaar. That looks attractive because some parts of Pal, Vesu, might be around 60,000 to 1.2 Lac / Vaar.

But then we have to consider that when the TP comes, Suda will take away at least 40% of that land (that’s the main reason Suda going for the T.P, so that they don’t have to buy the land from farmers for making the outer ring road)

After the deduction of say 40% the price becomes Rs. 8790 / Vaar.

For the sake of better understanding we put a row house plotting in this land. So now the builder has to leave some land for roads, COP and other miscellaneous stuff. So you again cut out 40% more from the land. Thus the price of a plot in a residential society will be 14650 / Vaar.

Also when the land gets converted to NA from agricultural land there some fees to be paid to the Government. So roughly speaking let’s say you get the land at 15,000 / Vaar.

This is the cost to the builder. Then there will be project costs, marketing costs and profit margins added to the cost. So this plot will be generally available for sale in 2 phases.

1. Early investors at say 21,500 / Vaar
2. walk-in customers it will be 23,000 / Vaar.

Does that price for Surat outskirts look attractive where there SMC water, drainage and proper roads  will be in place in a time frame of around 3 years?

Note: Vaar is same as Yards and 1 Vingha is 2844 Yards

I request all the builders, agents, investors and individuals to post your personal views below, as the above views are just of one person and the writer might have limited vision too on this.

  1. roids says:

    may be you need to check today’s newspapers’ articles. FSI upto 4.0 will be allowed. so even though cost is higher for end user, there will be city charm sure to be seen soon. for example hot area would be from Magadalla to Sachin route highway. will be similar to Ahmedabad’s Sarkhej highway !

    • Vimesh says:

      Why Sachin Magdalla and not Magdalla Jahangirpura. Sachin will be a super highway with all the heavy vehicles passing in huge density, where by people would avoid to go for residence, mainly due to their child safety. My personal view though

  2. jig says:

    How about if one can buy raw house in outskirt nearby new proposed NH6 ring road, kharvasa area.
    Came across good project called Vedant city, Is it advisable to invest with 22 lac of raw house?

  3. ak says:

    this not faire

  4. Jariwala says:

    Land at olpad state highay a good invetment in future????
    vant to knov price of land in var near olpad n dandi road

  5. markand says:

    This is not true. Land prices in TP area of outer ring road are not less than 3 crores per vingha and this will go up even further when the road is completed

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