The Gujarat government plans to revise jantri rates for property transactions but will first release proposed rates for public feedback to avoid past controversies. In 2023, a sudden doubling of jantri rates caused significant unrest in the real estate sector. This time, the government aims for a smoother process by allowing stakeholders to share suggestions and objections. Using a scientific approach, they have analysed past transaction rates to align jantri values with current market conditions. Real estate developers are optimistic about the changes, expecting the new rates to address previous anomalies and be more reflective of market prices.
The Gujarat government plans to change jantri tariffs for properties across the state, but before making any final pronouncements, it intends to solicit public feedback to prevent previous issues. In 2023, the government quadrupled jantri rates, causing great anger in the real estate sector and delaying the new rates' implementation. To avoid a recurrence of this problem, the revenue department has decided to release city- and area-specific jantri rates in advance, allowing stakeholders to make ideas and complaints before final decisions are made.
A senior government official indicated that the new approach aims to be more scientific. To ensure that jantri rates are more closely matched with market values, detailed surveys and analyses of previous transaction rates have been done. The source stated that in 2011, the administration faced criticism since comments were solicited only after the tariffs were revealed. This time, however, the Gujarat government is taking a proactive approach, making the planned prices public and soliciting feedback. This measure is designed to avoid the outcry observed in prior updates and ensure a more efficient procedure.
Last week, the real estate sector was abuzz with speculation about the impending revision. The Confederation of Real Estate Developers' Associations of India (CREDAI) welcomed the government's decision, stating that the sector expects the new rates to better reflect the market prices in different areas. An office-bearer from CREDAI expressed optimism that the government's scientific approach would address discrepancies in jantri rates, such as the previous practice of applying identical rates to plots on both wide and narrow roads.
The office-bearer added that the inclusion of a public feedback mechanism would help resolve potential issues in the new rates before they are finalised. By involving stakeholders in the decision-making process, the government hopes to remove the anomalies that have caused problems in the past and ensure that the new rates are fair and transparent.
Jantri rates, which are used by the government to value land and houses, are important in computing stamp duty and registration costs for real estate transactions. These rates have long been a source of contention in Gujarat's real estate sector, as they have a direct impact on property costs and, as a result, the market's overall health. The sector has long advocated for jantri rates to be more closely connected with real market values, rather than arbitrary or out of current evaluations.
The government's decision to take a more transparent and inclusive approach by soliciting public feedback is an important step toward addressing these concerns. With the participation of real estate developers, investors, and other stakeholders, the updated jantri rates are intended to be more appropriate for current market conditions. This will not only make property transactions more efficient, but it may also benefit the industry by reducing anomalies that have long been a cause of frustration.
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