Indians are always known worldwide for their smart choices when it comes to investment. And the real estate market has always been a top choice of many of the smartest investors because of increasing prices, security of investment and awesome returns on investment. And as we put an eye on the western shore of India, especially Gujarat we come across a few cities which are attracting high investments from the government as well as private players. Cities like Ahmedabad, Vadodara, Rajkot and Surat.

But of all these options available there is one city which has out-shined any investment options, and that city is Surat. And here we are going to give you five reasons. Yes, not one or two but a total of five reasons. Hence proving why Surat is one of the best or hottest real estate investment choices of the smart today.

1. Surat is a city with high standards of living – Surat, known as the Diamond capital of the world, is one of the fastest growing cities now just in India but in the whole World. And also, an average Surti earns almost double annually compared to an average Indian. Conferred with the “Best Urban City of India Award”, Surat is also one of the top Cleanest cities in India in Swachch Sarvekshan Surveys.
2. Surat – The Manchester of the East – It is well known as the second largest commercial centre in Gujarat and enjoys the eighth position in the largest cities of India. Well Known for diamond processing and synthetic textile industries, WSJ (Wall Street Journal) once wrote that as per their research world 80% of diamonds are processed in Surat alone.
3. A Gem of Future – Whether it be the ambitious project of bullet train or DMIC (Delhi – Mumbai Industrial Corridor) or Diamond Bourse, Surat is always in the good books of the central governments. Every ambitious government project, whether be of state or centre, always finds Surat as one of the biggest benefactors of the same. Now, even Surat’s Airport has become an International Airport and has increased air connectivity to various major airports of the world.
4. Demographically rich City – Surat enjoys rich demography as you can witness any caste, creed or religion living happily or working in the city. FYI, Surat enjoys almost 0% unemployment. Yes, it’s almost 0.18% only. This means that more skilled, more laborious and more sharp people exist in the city.
5. Surat has it all – Surat has all the necessary natural resources, labour and government backing, which are self-sufficient to invest. Its world-class infrastructure and small-scale industries, especially the textile industry, have made Surat one of the most preferred destinations for investing. Though several global investors have already invested in Surat, a lot more industries in Surat have tremendous potential which needs to be explored.
6. Surat lies close to Mumbai which is a boon for traders and businessmen and boasts of top-class infrastructure and governmental support. Additionally, Surat is set to witness several path-breaking infrastructural & business developments over the next few years which will lead to a huge appreciation in the values of investments made now.

Surat still has affordable property prices in comparison to several big cities in the country despite a steady rise in capital values owing to skyrocketing development.

Real estate is one of the most attractive avenues for investment. However, it is important to understand the market dynamics and choose the right property to ensure that your investment brings the expected return.

A popular investment asset, real estate, has witnessed tremendous growth in the last decade. This is the reason why Indians continue to find themselves attracted to the sector despite the complex nature of property investments. Experts advise that creating wealth through real estate investment requires a careful analysis of the market, options, preferred locations, and the merits and demerits associated with each. Selecting a property that is best suited to your needs is of vital importance for making a profit in the realty market.

Some key factors that need to be considered before choosing a property for investment are:

Purpose of investment

Before embarking on the search for a suitable property, an investor needs to ascertain his purpose for investment. Does he want regular rental income or is he more interested in capital gains? Price appreciation is the preferred route for long-term investors with greater risk appetite who tend to focus on developing locations as opposed to those looking for rental income who prefer areas with easy access to basic amenities.

Henceforth, projects like Homeland City comes with some unique proposition of Rent Guarantee, where they guarantee you of rent for your property, right from the day you get a possession from the builder.

Location

Location is the most critical factor to consider while investing in real estate. Harish Vishnani, Director, Homeland City, comments, “Areas enjoying sound infrastructure, such as those located near airports, prime-locations or markets, etc. will always yield higher rentals and price appreciation.” Those looking for rental investments should focus on areas already having good connectivity and social infrastructure, while long-term investors are better off exploring emerging corridors and city peripheries likely to get infrastructure boost in the near future.

Property segment

Investors also need to figure out which segment is the right fit for them based on their risk appetite, budget, and overall investment portfolio. Residential, office space, industrial, and retail properties each have their own pros and cons, which must be carefully analysed.

Property type

Further, investors would also have to choose between under-construction and completed projects as well as new and resale properties. Mr. Harish Vishnani shares that ready units come with benefits such as zero risk of delays, immediate rental yield, savings on service tax and Value Added Tax (VAT) which can amount to savings of up to six percent in most Indian states. On the other hand, under-construction properties can be purchased at lower rates and enjoy tax benefits, and the investor can bear huge returns in future when prices are appreciated, which definitely happens.

Property price

Buying at the right price is an intrinsic part of investing in real estate in order to achieve attractive capital returns. Investors need to find a property that meets all their needs and still remains within their means. Experts point out that while the most affordable locations are likely to witness delayed development, areas that are already expensive have the lowest scope for future price appreciation.

Developer

Picking a wrong developer can be as catastrophic as choosing the wrong location, assert experts. Thus, buyers must carry out adequate research about the developer to ascertain their credibility and track record. With the Real Estate (Regulation and Development) Act in motion, developers now have greater compliance requisites which will weed out fly-by-night and fraudulent operators. The enhanced transparency in the market is expected to make it easier for buyers to shortlist the best developers and projects.

Use this checklist when taking a decision or planning to take a decision of investing in real estate and you’ll be well on you way to a successful outcome that not only meets, but may very well exceed, expectations.