If you are planning to buy a property in rapidly developing urban areas, it is the right time to make your move. Gujarat Government had announced 100% increase in Jantri Rates in February 2023. However, due to strong resistance, the revision came into effect only in April 2023. Before this, Jantri Rates were last revised way back in 2011.Now, according to a report in Divya Bhaskar, the Gujarat Government is preparing to roll out another significant increase in Jantri Rates, especially for urban and highly developing areas. The new rates, expected to take effect as soon as August 2024, could see property prices rise by 100% to 200% in these areas.

Why Another Increase?

It has hardly been a year since a revision of 100% in Jantri Rates came into force. So, you may ask,what is the need for this another round of hefty increase? Well, as per the report, Revenue
Department of the Gujarat Government observed that even 100% rate revision was not effective,since it was introduced after a long duration of 12 years. Specifically, in urban areas and rapidly developing real estate clusters, market rates far exceed current Jantri Rates. On the other hand, in rural and less developed areas, the revised rate has had little impact, since the market prices have remained lower. There was an instability in the real estate market. It was necessary to create an equilibrium between Jantri Rates and market rates. So, the Revenue Department, in collaboration with Collector Office, employed their teams and conducted a scientific survey in order to stabilize the real estate market. New Jantri Rates derived based on this scientific survey indicate that properties can get costlier by 2.5 to 4 times in posh areas of cities like Ahmedabad. At the same time, in rural areas, where there’s lack of development, there will be a reduction of Jantri Rates. The report states that realty stakeholders have already been consulted regarding the new revision in rates. Now before we jump into details of areas where Jantri Rates are expected to change, let’s understand why it’s important to maintain congruity between market prices and Jantri Rates of properties:

Fair Taxation

Ensures the government collects appropriate revenue

Avoids excessive financial burden on buyers

Transparency and Reduced Black Money

Aligning rates reduces underreporting of transaction values

Promotes a healthier and more transparent real estate market

Accurate Property Valuations

Helps buyers, sellers, and financial institutions make informed decisions

Facilitates smoother transactions and better access to financing

Investor Confidence

Reflects a stable and predictable regulatory environment

Attracts both domestic and foreign investments

Where Jantri Rates are expected to rise?

Posh areas of metros

Developing areas included in Urban Authority, near metros

Municipal Corporations anticipating large real estate investments

Upcoming Municipal Corporations, Smart Cities, Industrial Zones, SEZs

Where Jantri Rates are expected to reduce?

Older areas with limited development potential within Municipa Corporations

Salt lands near seashores with limited development scope

Salt producing areas

Remote rural areas

Where Jantri Rates are expected to remain unchanged

Affordable Housing Zones

Agricultural lands

Areas where Jantri Rates and market rates are already congruent

The upcoming revision of Jantri Rates presents a critical window for prospective buyers. With rates set to increase significantly in rapidly developing and posh urban areas, purchasing property now can save you a substantial amount of money. Don't miss this opportunity to invest before prices surge. If you are planning to buy a premium property in prime location of Ahmedabad, The Emberlynn Group has attractive options for you. Don’t wait, take advantage of the current rates.