An angry fraternity of developers will meet with Chief Minister Bhupendra Patel today, shaken by the state government’s announcement of a 100% increase in the recently revised Jantri rate. The Jantri rate refers to a quick calculator of land value according to government estimation. The state doubled the Jantri rate throughout Gujarat on Saturday by issuing a General Resolution (GR). On February 5, the new Jantri rates went into effect.
Later, on February 5, the parties involved met to discuss a plan of action to counter the government’s hurried and illogical procedure. They have chosen to address Bhupendra Patel on Monday regarding the issues that the new Jantri rates present for the market and homebuyers. The new rates, according to realtors, will cause market disruptions throughout the state. Gujarat’s real estate market is dominated to a 30% degree by Ahmedabad. In addition, the National Real Estate Development Council (NAREDCO) Gujarat has scheduled a meeting for today to discuss the matter with the administration.
NAREDCO Gujarat Chairman, NK Patel said they have called an urgent meeting to decide the future course of action about the revised Jantri rates as it is a matter of concern for developers and home buyers.
Around 150 to 200 developers also gathered at the CREDAI Ahmedabad – GIHED office in Ahmedabad on February 5 to discuss the issue.
They too plan to meet the CM and give a memorandum seeking time till April end for both industry and home buyers. They want the new Jantri Rates to be implemented from May 1 onwards.
CREDAI Ahmedabad GIHED president, Tejas Joshi said the rise in Jantri Rates is welcome but doing so across the state is not scientific. “There are many areas where the property prices have been stagnant for several years but land prices have shot up. In such cases it is not prudent to have Jantri rates that are steeper than the market price as this will impact home buyers,” said Joshi.
CREDAI Ahmedabad also plans to appeal the decision to not revise Jantri rates for flats and bungalows in certain areas where prices have not moved up. They also said the government should avoid an increase in the property tax for home buyers.
They have also sought that the state activates its land valuation department (town planning valuation department) like Maharashtra did to keep a regular check on the market price of the land in different areas. Later, if the government wants they can revise the prices as per the changes in market price, the developers said.
CREDAI is also seeking a reduction in stamp duty by 50% for home buyers in the affordable housing category so that revised Jantri rates are not burdensome for them.
Developers also want the government to reduce the premium charges on the salable FSI that they can buy for projects as the revised Jantri will make such charges exorbitant.