The Impact of Surat’s Economic Region Growth Plan 2035 on Property Demand Today

1. Infrastructure and Connectivity Enhancements
The SUDA Development Plan 2035 prioritizes infrastructure, with projects like the Surat Metro Rail (expected completion by 2027) and the Surat connecting Highway improving access to prime and suburban areas. The Surat’s industrial corridor and enhanced railway connectivity are drawing businesses and residents, increasing demand for commercial and residential properties in areas like Vesu, Bhatar, and Adajan Gam. The Surat Diamond Bourse, operational since 2023, has attracted global businesses, spurring demand for Grade A office spaces and mixed-use complexes.

2. Growth of IT and ITES Sectors
Surat’s IT sector is thriving, with initiatives like the Microsoft CityNext program, partnered with companies like TCS and Wipro, positioning the city as a smart IT hub. The influx of tech firms has heightened demand for modern office spaces equipped with high-speed internet and smart building systems. This has led to a surge in Grade A commercial properties, with developers like SNS Developers creating state-of-the-art complexes to meet these needs. Co-working spaces are also gaining traction, driven by hybrid work models, further boosting commercial property demand.

3. Diversified Economic Growth
The Economic Master Plan 2035 emphasizes nine growth drivers, including textiles, diamonds, chemicals, tourism, and agro-processing, all contributing to property demand. The textile and diamond industries, which employ over 40% of Surat’s workforce, are driving demand for industrial and commercial spaces in hubs like Hazira. Tourism projects, such as beach hotels and the Parsi Irani Zoroastrian Experience Centre, are increasing demand for retail and hospitality properties. This diversified growth ensures a balanced surge in commercial, residential, and industrial real estate.

4. Residential Demand and Population Growth
The SER’s population of 1.5 crore and its contribution of 25% to Gujarat’s GDP are fueling residential demand, particularly in affordable and growing areas like Bhatar(+6.84% YoY price growth at ₹4,762/SqFt) and Adajan Gam. The influx of IT professionals and workers in other sectors, coupled with infrastructure improvements, is driving demand for housing near commercial hubs. Mixed-use developments combining residential, office, and retail spaces are becoming popular to cater to this growing population.

Investment Surge: Surat’s commercial real estate market saw investments of ₹1844 crore in 2021-22, reflecting a 24% rise in new commercial project registrations, driven by the plan’s economic vision and RERA compliance. Foreign direct investment (FDI) is also increasing due to market transparency.

Rising Rental and Occupancy Rates:Prime areas like Vesu (₹5,641/SqFt) and VIP Road are witnessing high occupancy and rental growth due to demand from IT and other sectors, while suburban areas like Bhatha are gaining traction for cost-effective spaces.

Mixed-Use Developments: The demand for integrated spaces combining office, retail, and residential components is rising, driven by professionals migrating to Surat for job opportunities.

Sustainability Focus: With the 2035 plan emphasizing sustainable urban growth, developers are adopting green building practices, such as energy- efficient designs and renewable energy sources, to meet market expectations.

High Returns on Investment: Commercial and residential properties in areas like Vesu and Bhatha offer strong rental yields and capital appreciation, driven by infrastructure projects and economic growth.

Emerging Localities:Suburban areas like Bhatha, Ambanagar, and Athwa are becoming hotspots for development due to lower costs and upcoming infrastructure like the Surat Metro.

RERA Compliance: Adherence to Real Estate Regulatory Authority (RERA) norms ensures transparency, boosting investor confidence in Surat’s market.