Surat Municipality Approves 680 New Real Estate Plans This Year
Despite the effect of recession in the aspect of real estate development in Surat, the builders were still unstoppable in developing new projects. The number of new projects has been increased as compared to the approval plans on last year. This financial year, the municipal corporation has approved around 680 residential plans with around double of approvals around 3 years ago. The Town Planning (TP) of Surat Municipal Corporation (SMC) had issued approval to 278 construction plans in financial year 2010-11. Around 472 plans were approved in 2011-12 and total 677 plans were approved in the year 2012-13. Now around 680 new plans have been approved in 2013-14 till March 2014. By the end of this financial year, this figure is expected to cross around 700 plans.
In fact, the process of development of new area is going up at rapid rate in Rander, Varacha and Athwa regions. This way, developers have been motivated to develop more and more residential complexes in such areas, according to TP officials. Surat is a fastest growing city and has seen the effects of recession, but as an opportunity. Over the past two years, SMC has approved 124 and 119 construction plans in Rander area and approved around 147 and 132 plans in Varacha and around 198 and 202 plans in Athwa region.
On the other side, the National Housing Bank (NHB) has released the latest residential index (Residex) of property prices according to which property prices are enjoying upside trend. During the quarter of October-December, various Tier-2 and Tier-3 cities have witnessed growth as metropolitan markets in same levels. When compared to last quarter, Nagpur has witnessed huge growth of 8% of property prices, after Guwahati at 7.4%, Ahmadabad at 3.1%, Pune at 7.3% and Surat at 6.2%. Other remarkable areas are state capitals like Bhubaneswar at 4.7%, Patna at 6%, Bhopal, Dehradun and Raipur at 1.4%.
The higher level of economic activities is the major growth-driving factor in these cities. The competition of industries is witnessing increased cost of real estate in metros. Because of the growth in Tier I cities, both Tier II and Tier III cities are enjoying the benefits with affordable and sizeable land, talent pool and varied real estate options.