Diamond Industry Slowdown Impacts Surat's Real Estate Sector

Surat, May 23 (KNN) Surat's real estate sector is experiencing a downturn, closely tied to the ongoing slump in the city's diamond industry. 

The number of new construction project approvals by the Surat Municipal Corporation (SMC) decreased from 724 in 2022–23 to 553 in 2024–25, indicating reduced investor confidence. 

The city's economy, heavily reliant on cut and polished diamonds (CPD), has seen a significant decline. Exports of CPD dropped by 16.75 per cent, from USD 15.96 billion in 2023–24 to $13.29 billion in 2024–25. 

Imports of rough diamonds also fell by 24.27 per cent in value and 16.2 per cent in volume during the same period. Lab-grown diamond exports declined by 9.64 per cent, highlighting the industry's overall downturn. 

Despite an increase in earnings from paid Floor Space Index (FSI) — rising from Rs 629 crore in 2022–23 to Rs 1,109 crore in 2024–25 — the real estate market remains sluggish. 

Industry experts note a significant drop in inquiries and demand, particularly in the apartment segment. 

While the textile industry provides some support, the diamond sector's health is crucial for real estate growth in Surat. 

Jasmat Vidiya, chairman of CREDAI Gujarat, emphasised the need for quicker civic approvals and targeted strategies to revive the market. 

He stated, "There is a slowdown due to several factors, and the diamond industry is passing through a rough patch. The drop in business is directly affecting the real estate sector in the city." 

As Surat navigates these economic challenges, stakeholders are calling for collaborative efforts to stabilise both the diamond and real estate sectors.

(KNN Bureau)