Surat, the business town of Gujarat, has a thriving real estate market with all modern infrastructure and access to standard facilities like schools and hospitals. It is also a port town that attracts serious business to the city.
The price of residential projects in Surat is increasing exponentially at the moment. If you wish to purchase a residential property in Surat, read the details below.
Top Reasons to Invest in Surat Real Estate
Surat is a business magnet in India and thus is developing rapidly. The points mentioned below are why you should invest in Surat’s residential properties.
Surat is known for its diamond polishing industry. Almost 80% of diamonds in the world are polished in Surat. This particular industry generates employment and business in this city, creating a demand for residential housing facilities.
Surat has built sectors for the petrochemical, textile, automobile, and many more industries.. Therefore, it generates demand for residential properties to accommodate the vast population of industrial professionals who settle in this city from different parts of the country.
Buses, railways, and a crowded airport provide excellent transportation to Surat. Moreover, it is soon to start a metro network with two-line networks spread across the city. Hence, it is the right time to invest in this area.
Residential Real Estate Investment Opportunities in Surat
The best areas for real estate investment in Surat are listed below.
The region is ideally situated with good access to other sections of the city and is adjacent to the lovely Tapi River and the rest of Gujarat. It is well-developed, has access to all amenities, and is a demanding place in Surat. Vesu has access to clean drinking water due to its proximity to the river. It is also close to NH-6 and state highway SH-168.
Trains and roads provide excellent access to this area. . It is in the western part of Surat with access to NH-6, which connects it to Kolkata and Nagpur. It is a thriving residential hub with several popular projects awaiting completion. Adajan is just 8 km away from the Surat Railway Station and about 13 km from Surat Airport.
Read Also: Guide for Kolkata Residential Real Estate Investment
Things to Consider Before Buying a Residential Property in Surat
Before buying a residential property in Surat, you should consider the following factors to ensure a safe investment.
A location with good connectivity and a transport network is more in demand for real estate investments. Therefore, it will fetch higher value in the future. Moreover, living in an area with easy transportation makes daily commutes easy and hassle-free. Hence, invest in a property with good connectivity.
While buying a residential property, choose a builder with good experience and popularity. Projects under established builders have better construction quality and get better future returns. It also ensures an excellent after-purchase experience.
Select a location carefully after checking all advantages of an area. Location with high demand offers you the security of investment. The value of such areas always appreciates fast and gives good returns.
The Real Estate Regulatory Authority (RERA) is a real estate governing body formed under the Real Estate (Regulation and Development) Authority Act of 2016. This act mandated all states to develop a RERA body to look after the interest of real estate investors and all related practices.
Before investing your capital in a residential property, verify the details of the property and its developer from the official website of RERA Gujarat, as all property developers and real estate brokers should register and document their activities under RERA.
If you purchase a residential property in Surat, you should choose a neighbourhood with good safety measures and surveillance assistance. Everyone wants their home to be safe. Thus, as an investor, you should choose a location with standard safety measures.
Your residential property should be close to essential facilities like schools, clinics, markets, malls, etc. It is crucial as it improves the residents’ quality of life..
Stamp Duty in Surat, Gujarat
Stamp duty charges in Surat are an accumulated base rate value and a surcharge which is the same for both males and females.
|Gender||Stamp Duty Charges|
|Male||4.9% (Base rate – 3.5% + Surcharge – 1.4%)|
|Female||4.9% (Base rate – 3.5% + Surcharge – 1.4%)|
Registration Charges in Surat, Gujarat
The following are the property registration charges in Surat.
|Male||1% of property value|
|Female||0% of property value|
Surat Residential Real Estate Outlook
As Surat is a massive industrial hub with significant action in the diamond industry, it has constantly developed faster than several other cities. The metro railway project, Mumbai-Ahmedabad bullet train and Chennai-Surat Highway are all upcoming realities of Surat.
These projects and the growing demand for residential properties will positively boost the real estate industry in Surat in the upcoming years.
Residential Real Estate vs Other Asset Classes
All the different asset classes have their own set of pros and cons. To understand all the aspects, refer to the comparison given below.
Residential Real Estate vs Gold
Gold investments are long-term financial instruments that offer moderate returns to investors with comparatively moderate risk. On the other hand, residential real estate offers higher returns. However, the initial cost of real estate investment is much higher than gold investments.
Residential Real Estate vs Commercial Real estate
Residential real estate is a stable investment with high returns in the long run. Commercial real estate generates high returns but can be highly risky . The tenant verification process and leasing agreements with commercial businesses can get confusing and tricky.
Discover More: Guide for Surat Commercial Real Estate Investment
Residential Real Estate vs Stocks & Equity Mutual Funds
Stocks and equity mutual funds offer the best returns compared to all other assets. However, they are incredibly volatile and depend highly on the market fluctuations. On the other hand, residential real estate investment is comparatively less risky and offers high returns in the long run. Therefore, they are sustainable investment options to grow your capital.
Residential Real Estate vs Bonds
Bonds investment offer moderate returns and possess moderate risks as well. On the other hand, real estate offers much higher returns than bonds, but has extreme liquidity issues. Furthermore, bonds are substantially less expensive than real estate.
If you want to purchase low-risk bonds that offer stable returns, refer to the list of bonds on our website. Choose from a range of top-rated bonds and start your investment journey today.
Below is a comparative table of various assets that considers returns, liquidity, risk, volatility, and ticket size for your convenience.
|Parameters||Residential Real Estate||Gold||Commercial Real Estate||Stocks & Equity Mutual Funds||Bonds|
Steps to Invest in Residential Real Estate in Surat
If you wish to buy a residential property in Surat, follow the steps below:
Step 1: Fix a budget for investment and do a market survey.
Step 2: Based on your requirements, shortlist a few properties.
Step 3: Visit the shortlisted sites and assess their aspects, such as infrastructure, amenities, connectivity, etc.
Step 4: Conduct a background check of the properties to verify all the details and documents.
Step 5: After finalising a property, arrange all its paperwork, such as the sale deed, agreement, building plan, etc.
Step 6: Pay for the property. Make sure to complete the stamp duty and registration formalities.
Read More: Guide for Pune Residential Real Estate Investment
Surat is one of Gujarat’s best areas for real estate investment. Due to its vast diamond cutting and polishing industry, it is in popular demand for business. Moreover, living in this city gives exposure to fast development and modern infrastructure. Therefore, if you plan to invest your capital in real estate, Surat is a good investment option in the residential sector.
Frequently Asked Questions (FAQs)
Is Adajan a posh area in Surat?
Adajan is a luxurious residential area in Surat with over 200 residential projects that offer modern amenities and high-value properties. Fresh water and a steady power supply are among the necessities that went into its development.
Which is the best area to live in Surat?
ONGC Nagar Phase 1 is one of the best areas to live in Surat. It is a planned project that offers all the modern amenities to its residents and improved connectivity to the city’s major locations.
Is Surat an IT hub?
Surat is a developing tech hub and ranks among the top cities in India with a startup ecosystem. The recent penetration of several IT giants in the city has made it a thriving IT hub.
Is Surat a Smart City?
The central government has declared Surat among the list of 20 smart cities in India under the Smart City Mission. Several active projects are in the pipeline to establish Surat as one of the most developed smart cities.