The Gujarat government’s recent announcement regarding the revision of Jantri rates (government-calculated property rates) has sparked concerns within the real estate sector, with fears of property prices rising by 15 to 25 per cent in Ahmedabad.
Realty experts believe that although the government has opened a 30-day window for public suggestions on the new Jantri rates, the average increase in rates could range from 200 to 400 per cent across Ahmedabad and Gujarat as a whole
Suresh Patel, President of NAREDCO Gujarat, commented, “While we welcome the government’s efforts to create a more scientific Jantri, it appears that the new rates could see an increase of 200 to 400 per cent, including in Ahmedabad.”
He added, “This will place an additional burden of stamp duty and Floor Space Index (FSI) charges—amounting to 30% of the Jantri rates on developers, making properties 15-20 per cent more expensive. Therefore, we urge the government to reduce stamp duty from 4.9% to 2%, and registration charges to a maximum of Rs 10,000.”
Commenting on the development Dhruv Patel, President of CREDAI Ahmedabad GIHED, said, “In response to CREDAI’s persistent efforts, the government has agreed to invite suggestions within 30 days, which will benefit the industry, the public, and citizens at large.”
He continued, “However, we need to carefully review whether all relevant factors have been adequately considered.”
Redevelopment projects to be impacted
Kartik Soni, a city-based developer involved in redevelopment, said, “Many developers are considering holding off or cancelling projects due to the increased burden of FSI and stamp duty. This development will likely force changes in MoUs between developers and housing societies, delaying projects further.”