It is a big dream for middle class people to buy their own house, but the Gujarat government’s proposal to increase the Jantri rate i.e. circle rates by 200 to 2000 percent has now made this dream difficult. This problem has become a matter of concern not only for the common people but also for the builders.
Builders believe that if house prices increase, it is obvious that the number of customers will also decrease. That is why CREDAI i.e. Confederation of Real Estate Developers Association of India has expressed its objection against this proposal of the government.
Builders may also suffer huge losses
CREDAI Chairman Dhruv Patel has refused to accept the proposed increase in circle rates. He says that such a sudden increase after 12 years will cause huge losses to the builders. CREDAI has urged the government to reconsider this decision. CREDAI has criticized the government’s decision to increase the rates so much without investigation. Builders believe that this increase may put a halt to development work in the state and house prices may generally increase by 30 to 40 percent.
CREDAI made this demand from the government
Along with this, CREDAI has demanded from the government that applicants should be given time till March 31, 2025 to register their objections. He says that this proposal will have a direct impact on home buyers. Its economic burden will increase especially on the middle class. Even before this, there had been talks between builders and the government regarding public rates, however this time the situation has become even more complicated.
Danger of recession in real estate sector
Builders say that due to such a huge increase in Jantri rates, customers may shy away from buying houses, which will increase the risk of recession in the real estate sector. It is clear that if utility rates increase by 30-40 percent, it will have a direct impact on the pockets of customers, due to which it is believed that the development work of the state may even come to a halt.
Know in simple language what is Jantri rate?
Jantri is called Annual Statement of Rates. This is the minimum rate that the state government charges on property whose ownership changes. If you understand in simple language, when a person buys a new property, he has to register it at the same rate which is fixed by the state government. This rate varies in different cities. Not only this, its rates increase or decrease due to many factors including the type of property, location and its size. Rates also vary in case of residential, commercial and institutional properties.