Ever since I moved to Surat, one of my fundamental queries has been - whether the principles of Real Estate Economics applies to this city. Why Not? is a general reaction to those from Metro cities. The reality, however, is quite surprising and to understand that we have to go deeper into the forces that drive real estate supply and demand in Surat.
The Supply that is being created in all major asset classes - residential, commercial & industrial - is primarily being done to support the investment objectives to utilize the humongous cash-overflow from the textile & diamond businesses. So the Demand is primarily from those who want to park their extra funds and not from the consumers of the real estate that is being created.
In such a scenario the general principles of economics would not work as the Supply & Demand do not have a direct correlation.
So I am using the term ECONOMIX to describe such a scenario. This is the first blog of this series so do stay tuned in as I explore and unravel this MIX.
