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YUGEN REALTY, SURAT
When it comes to the economic development of the country, metro cities like Mumbai, Delhi, Bengaluru were seen as the biggest growth engines of India for years. But now emerging cities like Surat are writing a new picture of India’s development.
According to People Research on India’s Consumer Economy (PRICE) and Tata Sons’ ‘The Many Urban Indias’ report, Surat has today joined the most powerful emerging consumer markets in India.
After the top-6 metro cities like Delhi, Mumbai, Bengaluru, Chennai, Hyderabad and Kolkata, Surat has become the largest consumer market in the country.
According to the report, Surat’s consumer market has reached a level of approximately 30 billion dollars i.e., about ₹2.58 lakh crore.
The special thing is that Surat is ahead of Bengaluru in terms of average household consumption, while Surat has left behind big cities like Kolkata, Chennai and Hyderabad in terms of average household income.
Surat’s true strength : Lower lifestyle expenses with high income (low cost of living)
The biggest feature of Surat’s development is that income is increasing here, but the cost of living is still under control compared to metro cities.
In cities like Mumbai, Bengaluru and Gurugram, the cost of buying a house, rent, EMI, school fees and daily expenses are very high. In many areas, the price of even a normal flat reaches ₹1 crore to ₹5 crore and the annual fee of good schools is in lakhs.
Due to this, despite high income in metro cities, a large amount of family money is spent on necessary expenses and savings for alternative purchases or investments remain low.
On the other hand, the diamond, textile, manufacturing and business-based economy in Surat has increased the income of the people, while the cost of living is relatively low, so the people of Surat have more money available for spending and investment.
This is the reason why segments like cars, premium mobiles, ACs, washing machines, home appliances, branded clothes, fashion and jewellery are witnessing continuous growth in Surat.
Now it is time to divert this purchasing power towards real estate
This growth seen in consumer markets is now a big and auspicious sign for the real estate market of Surat.
Due to increasing income and saving capacity, the consumer of Surat now wants to not only buy a house but also get a better lifestyle.
Today’s buyer is now giving importance not only to four walls but also to location, design, space, amenities, club life, security, green area and smart living.
This changing mindset can further strengthen the demand for premium and luxury real estate in Surat in the coming times.
Time to change the perception that Surat is only a ‘labour city’
There has long been a belief in the real estate sector that Surat is mainly a labour and working class-based city and the spending capacity of consumers here for premium projects is limited compared to metro cities.
But this report by PRICE and Tata Sons challenges this old belief.
Surat today is not just a manufacturing city but has become a rich consumer market with spending capacity.
If Suratis can spend on premium cars, jewellery, lifestyle products and branded items, then they also have the capacity to invest in good quality real estate.
This report gives an important message for developers that Surat is no longer just an affordable housing market. A new consumer class is emerging here who is ready to spend for a premium living experience. Now, it remains to be seen whether developers and the real estate industry can take advantage of this emerging opportunity? If proactive efforts are made, this opportunity can definitely be taken advantage of.
Surat’s Consumer Power in Figures
- Consumer Market : $30 Billion (Approximately ₹2.58 Lakh Crore)
- After Top-6 Metros : Largest Emerging Consumer Market in India
- Average Household Consumption : More than Bengaluru
- Average Household Income : More than Kolkata, Chennai and Hyderabad
- Main Growth Engine : Diamond Industry, Textiles and Entrepreneurship
- Main Consumer Segment : Fast Growing Middle and Upper Income Class
Surat’s Affluent Class Grows Rapidly in 10 Years
According to the report, the share of households with annual income of ₹6 Lakh to ₹36 Lakh in Surat has increased from 29% to 53% in the last 10 years and is likely to reach 60% by 2030-31.
While the share of upper income class households with annual income of more than ₹36 Lakh has increased from 3% to 12%. This indicates that Surat will have a stronger financial class of home buyers in the coming years.
Where will the next boom in Surat come from?
Due to increasing purchasing power, Surat is likely to witness growth in the following sectors in the coming time :
- Branded Retail
- Premium Commercial Space
- Jewellery
- Premium Fashion
- Automobiles
- AC and Home Appliances
- Premium Housing
- Luxury Apartments
- Smart Home Products
Time for a new opportunity for Surat real estate
India’s upcoming economic growth is no longer limited to metro cities. A report by PRICE and Tata Sons shows that emerging cities like Surat are now becoming new growth centers due to strong income, savings and purchasing power.
Surat’s growing economic potential sends an important message to the real estate industry that now it is time to see the city not just as an affordable or price-based market but as a value, quality and lifestyle-based market.
In the coming times, Surat’s consumer will give more importance to the design, construction quality, amenities, community living, green space, technology and the complete living experience of the project instead of just the number of square feet they get.
This change is a big opportunity for Surat’s developers. If future projects are planned keeping in mind the expectations of the growing middle- and upper-income class, Surat can create a new identity for itself not only as a consumer powerhouse but also as a leading premium real estate destination in the country.
Just as Surat has established a global identity in the diamond and textile industries, it now has the potential to write a new chapter in quality and lifestyle-based real estate development.
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Disclaimer : This information has been collected through secondary research and Yugen Realty Newspaper is not responsible for any errors in the same.
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