Distressed investors offer rent free shops to textile traders

  • | Wednesday | 7th November, 2018

I have decided to offer my shops rent free for one year to attract customers. Hence, investors have started giving shops rent free to attract traders.” Realtors and investors have devised a new way to attract buyers, mainly from the textile industry.Market sources said there are 160 textile markets having more than 70,000 textile shops on Ring Road and Salabatpura. The main textile market hub is located on Ring Road and a new textile market area is developing in Puna and Parvat Patia areas. Surat: There is a silver lining in the otherwise gloomy textile industry that is reeling under slowdown.Real estate developers and investors in the newly constructed textile markets at Puna and Vesu are offering shops to textile traders rent-free for one year.

Surat: There is a silver lining in the otherwise gloomy textile industry that is reeling under slowdown.Real estate developers and investors in the newly constructed textile markets at Puna and Vesu are offering shops to textile traders rent-free for one year. Even the traders wanting to purchase shops are being offered good discounts, one year free maintenance, no brokerage and parking facilities.After Goods and Services Tax, sale and rental of shops in Puna, Parvat Patia, Vesu and Saroli have gone down due to recession in the textile market. Realtors and investors have devised a new way to attract buyers, mainly from the textile industry.Market sources said there are 160 textile markets having more than 70,000 textile shops on Ring Road and Salabatpura. Saroli, Puna and Parvat Patia have more than 45,000 shops in more than 70 textile markets developed in the last four years to attract textile traders from Ring Road.Rajendra Bhanushali, an investor, who owns more than 10 shops in one of the textile markets at Puna, said, “There is a major slump in real estate market as well as textile industry. I had purchased the shops to earn fixed monthly rental income, but my shops are lying vacant. I have decided to offer my shops rent free for one year to attract customers. I will let out the shops to traders without taking any charges, including maintenance. After one year, they will have to pay the rent prevailing in the market.”At one of the markets at Parvat Patia, a realtor is offering shops rent free for two months and buyers will get another shop free for same duration. After two months, the buyer will have to pay rent or if he wishes to purchase there will be a flat 15 per cent discount on the market value of the shop.“We are struggling to sell and let out our shops for the last one year. The main textile market hub is located on Ring Road and a new textile market area is developing in Puna and Parvat Patia areas. Since there is recession in the textile sector, we are not getting any buyer. Hence, we are running such schemes to attract buyers,” said Rajesh Patel, a realtor.Federation of Surat Textile Traders Association (FOSTTA) secretary Champalal Bothra told TOI, “The rent in textile markets on Ring Road ranges between Rs25,000 and Rs50,000. The new markets in Saroli, Puna and Parvat Patia are offering shops on rent for Rs7,000 to Rs15,000. Despite this, traders are not going there. Hence, investors have started giving shops rent free to attract traders.”

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