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?
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.