By laksh5382 
days after Gujarat Government proposes revision in “Jantri” rates – Benchmark land rates Decision by Government – real estate Developers associated with CREDAI on Tuesday said the new rates will increase the prices of new housing projects in Gujarat by 30-40 per cent. “Our preliminary analysis shows that the Gujarat government has increased jantri rates by an average of between 200-2,000 per cent. CREDAI-Ahmedabad Chairman Dhruv Patel on Tuesday said the hike does not seem scientific or logical and such a sudden hike will adversely impact the ongoing projects and will lead to 30-40 per cent price increase in new projects.
Jantri rates in Gujarat are ready reckoner rates decided by the state government and are applicable on any property bought or sold in the state. The government sets rates based on periodic assessments of property values, market conditions and other factors.
“The proposed increase is higher in rural areas and lower in urban areas. If prices of houses and other real estate suddenly increase by 40 per cent, how will people buy them,” he said. On November 20, the Gujarat government placed the draft of the “Annual Statement of Rates 2024”, commonly known as Jantri, in the public domain and invited suggestions and objections. The last date for feedback on draft rates is December 20.
Pointing out how the Gujarat government has already doubled jantri rates in March 2023, Patel said, “We are not against the government increasing the rates. But this cannot happen suddenly. Just 18 months ago the government had increased the rates. Any future increase should be in phases.” CREDAI members said the proposed hike in rates will impact ongoing projects as customers will have to pay higher rates of stamp duty. Real-estate developers also said that Projects under redevelopment in urban areas like Ahmedabad would also be “unviable”.
Seeking more time from the state government, Patel said, “Until there is any clarity from the state government on the new jantri rates, real estate projects will remain stalled.”