Jantri Rate Hike on Gujarat's Real Estate Sector

The rising demand for real estate properties in Gujarat has convinced the government to take decisions on changing the Jantri rates. The real estate sector in Gujarat is growing, with prominent developers bringing in quality options for residents of the state and across India. 

It has been 12 years since the Jantri rates were changed. The Gujarat government has decided to hike Jantri rates by 100% due to high demands. It is for the larger interest of people, as they would get the correct market value for their immovable properties, and the state can excel towards more development in the real estate sector. 

In this article, let's discuss how increasing Jantri rates will help boost the real estate sector. Alongside that, we shall also explore all the other government strategies to boost the real estate sector in the state.

What are Jantri Rates?

As per the specified rules by the Gujarat government, Jantri rates are the lowest rates of properties and lands in Gujarat, below which one cannot register or buy a property or land. Jantri rate is calculated based on the property type (residential or commercial), infrastructure, property age, market value and location. You can calculate Jantri rates online for a specific land or property by visiting the official website of the Gujarat government.

Use a Jantri calculator to enter the parameters and determine the minimum rates for registering property or land. 

Strategies by the Government for Growth of the Real Estate Sector

Gujarat has experienced rapid economic recovery post-COVID-19 pandemic. It is now a preferred destination for all forms of domestic and global investments, which has increased the demand in the real estate sector. There are various strategies that the government has introduced to help the real estate sector meet the rising needs of the state and also contribute to its development. 

Increase in Jantri Rates after 11 Years

The idea of hiking the Jantri rates by 100% is a master stroke by the state government to ensure that the development pace doesn't slow down in Gujarat. Apart from that, people, especially the farmers, would get a reasonable price for selling their lands and properties. The government will collect more revenue through registration and stamp duty charges, which will be used to meet the rising demands of real estate. It was a sudden announcement by Chief Minister of Gujarat, Bhupendra Patel, on 4th February 2023, which instructed the authorities to put it in effect from 5th February 2023. But due to some evident scenarios, it has now been postponed to 15th April 2023.
 
After 11 years, this hike is meant to improve the state's economy and the real estate sector. The increased Jantri rates are aligned with the properties' current market value, which will greatly help the compliant taxpayers and salaried-class individuals. The sellers will benefit from indexation cost on the increased purchase value if they want to buy another property. As a result, people can reduce capital gain and minimise their tax liability. 

Other Real Estate Growth Strategies of the Gujarat Government

Apart from the hike in Jantri rates, there have been many strategies by the government towards the real estate sector. The strategies include:

1. Building Connectivity

In April 2022, the state budget released by Gujarat was to improve the connectivity of the state. It increased the demand for real estate properties across various parts of the state. 

2. Six Town Planning Schemes

In January 2022, the government of Gujarat finalised and announced a total of six town planning schemes. These schemes consist of the following:

• Two final & 2 preliminary schemes, under AUDA of Ahmedabad
• One final & 1 preliminary scheme, under SMC (Surat Municipal Corporation)
• One draft scheme under VUDA (Vadodara Urban Development Authority)

The required TDRs (Transferable Development Rights) have already been assigned for the rehabilitation of the slums, public housing redevelopment and heritage conservation. 

3. Infrastructure Improvements Boosting Real Estate

There have been some state developments directly related to the growth of the real estate sector in Gujarat. Some of these developments are as follows:

1. Delhi-Mumbai Industrial Corridor (DMIC)
2. Gandhinagar-Ahmedabad Metro Linking
3. Bus Rapid Transportation System (BRTS) for cities–Ahmedabad, Rajkot, Vadodara and Surat. 
4. Dahej Petrochemical and Petroleum Investment Region (PCPIR)

4. Budget Extended for Metrolite and Metrorail Services in the State

A dedicated budget was extended in 2022, introducing Metrolite and Metrorail services. It was for the municipalities to seek infrastructural developments in cities such as Surat, Rajkot, Ahmedabad and others under the Smart City scheme. 

Now, you have a brief idea of how effective Jantri rates will be for the real estate sector. Apart from that, several strategies were part of the state's overall plan to boost the real estate industry of Gujarat. Meanwhile, if you are looking for opportunities for property investment in India, then Adani Realty is here with many options readily available for you to consider.