SDB Impact – Property Prices Rise in Major Areas of Surat
Recently some diamond merchants have made an announcement of their plan to establish Surat Diamond Bourse (SDB). Its effect led to hike in property prices in Dumas Road, Vesu, Piplod and Bhimpore. Dumas Road is witnessing sudden boom because SDB has been planned over there.
The SDB is announced to set up either in Athwa or Umra municipal zones. Hence these places are witnessing a sudden rise. According to a developer, they are getting offers to buy flats by paying Rs. 250 per sq. ft. higher than the last market price. With the expectation of big boom, the property prices have grown up by 20%. Aakash Group is one such developer in Surat which is offering luxurious projects at reasonable prices.
According to a short-term investor Khushman Diwan from North East, investors who bought their properties around 3 years ago, are awaiting to enjoy these benefits. He had also acquired 4 flats in Piplod. He is also expecting for a huge profit with the sale of his flats. In Surat, he will again invest in property.
It is expected that some major areas of the city will see fastest development. Especially in Dumas region, the prices of land have grown up by whopping Rs. 10000 per sq. yard over the past 15 days, especially due to this announcement. According to a real estate developer, the rates of property can grow up by 25% over the next six months.
Niraj Tomar from Jones Lang La Salle (JLL) Gujarat added that there are speculations and and expectations playing great role. For over 18 months, one has to be careful. On this reason, one can reach the conclusion just after it.
SMC or Surat Municipal Corporation had already issued notices for evacuation to the owners of flat and multi-storey apartments for it. It is found that they were structurally weak. In that apartment, a resident went to visit the flat of 1700 sq. ft. on May 1 which was quoted as 3 BHK for Rs. 52 Lakh in Vesu. Just after 20 days, the quoted price was increased by Rs. 60 Lakh for same unit when he went for the deal.