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Surat Diamond Bourse effect: Property prices head northwards

Add comment   |   May 21, 2014    11:39pm   |Contributed by Indian Realty News

SURAT: The prices of properties in Vesu, Dumas, Bhimpore and Piplod are witnessing a sudden boom ever since an announcement was made recently by some diamantaires about their plan to set up operations of Surat Diamond Bourse (SDB) on Dumas Road in the city.

“These areas are experiencing a sudden boom after an announcement was made about setting up of SDB either in Umra or Athwa municipal zone. We are receiving offers to purchase flats at Rs 250 higher for every square foot than the prevailing market rate,” a developer said, adding that property rates have gone up by 20 per cent in anticipation of big boom in future.

“Investors, who had purchased properties three years ago are waiting to reap profits,” said Khushman Diwan, a small-time investor from North-East, who had invested in four flats in Piplod. Diwan expects to make huge profit by selling his four flats. He plans to invest in real estate in the city again.

“There is expectation that some city areas would see speedy development. Land rates have gone up by Rs 10,000 per square yard especially in Dumas in the last 15 days, precisely for this reason. The property rates could go up by at least 25 per cent in the next six months,” said Dilip Avadh, a developer.

Niraj Tomar, in-charge of Jones Lang La Salle (JLL), Gujarat, told Times of India,”There is anticipation and speculation at play here. One needs to be careful for a period at least 18 months. A conclusion on the reason for the boom can be arrived only after that.”

Surat Municipal Corporation (SMC) had issued evacuation notices to flat owners of a multi-storey apartment for it was structurally weak. A resident of that apartment located in Athwalines, went in search of a flat and was quoted Rs 52 lakh for a 1,700 sq feet 3 BHK apartment in Vesu on May 1. When he went to make the deal after 20 days, the price quoted to him was Rs 60 lakh for the same flat.

Source: TOI

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