Jantri price revision in Gujarat: boon or bane?
Gujarat Government doubles ‘jantri’ rates for immovable properties after 12 years – The Economic Times.
Recently, the Gujarat government issued a notification stating the hike in the annual statement of rates (ASR) after 12 years. It is implied on all immovable properties from 5th February 2023 to give the due market value to properties. This decision has been taken after reviewing the sale deeds of the past 3 years. For detailed information on what Jantri rates are and what factors affect the Jantri rate, keep reading.
What is the Jantri Rate?
Jantri price is revised by the revenue department after undergoing multiple factors. Jantri price is the minimum property rate beyond which one cannot register a property under government records. The price has a direct relationship with the stamp duty and registration charges that have to be paid at the time of buying a property. The factors that affect the Jantri rate are the structure type of the property, infra around the property and nearby locality. Let’s have a detailed look.
What are the factors affecting the Jantri price?
There are multiple factors that affect the rates, but here we will have a look at the factors that are considered by the government while deciding the Jantri price.
1. Market Value
The market value of the property is very necessary, and it has a direct relationship with the asking price.
2. Property Surroundings
If the surroundings have high-class amenities like good commutation, shopping complexes, hospitals, schools, parks and more then there are higher possibilities that the jantri price would be more. Posh areas always attract high jantri prices.
3. Usage of the property
The jantri price also depends on the usage of the property, for example, if it is used for residential or commercial purposes.
The decision to increase Jantri price was taken for rapid industrialisation, economic development, and urban-rural upgradation. If the Jantri rate was Rs 100 per square metre, then it will be Rs 200 per square metre on today’s date.
Jantri rate affects the affordable housing segment
According to many developers, the inflation in jantri prices is directly affecting the affordable housing segment. There are possibilities of the market collapsing due to the insufficiency of affordable homes being AFFORDABLE. Hence dreams of many commoners may go at the toss. Commoners are going to be affected the most by the rule as their income tax liabilities will double and their purchasing power may be restrained.
Two sides to the coin
There is this side where developers are not at all satisfied with the inflated price, while the other side is the realtors, according to whom it is a welcome step. The only loophole with the decision is that it is applicable across Gujarat. High Jantri prices in certain parts of Gujarat are appreciated and understood, while in other parts where the cities have affordable homes, they are going to suffer.
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