HomeLatestProposed Jantri Rate Hike of Up to 900% Alarms Gujarat Real Estate

Proposed Jantri Rate Hike of Up to 900% Alarms Gujarat Real Estate

The Gujarat real estate sector is on edge following the state government’s proposal for a steep increase in jantri rates, with hikes ranging from 50% to 1,000%, reaching up to 2,030% in some cases compared to pre-April 2023 rates. Developers and farmers alike have voiced concerns over the potential impact of this unprecedented increase on land deals, project feasibility, and housing affordability. These draft rates, introduced just months after a 100% hike in April 2023, threaten to stall growth in the already sluggish sector.

For developing areas like Godhavi, Tragad, and Shela, jantri rates for open plots are set to rise by 965%, 700%, and 621%, respectively. Industry experts, including Dhruv Patel, president of CREDAI Ahmedabad, warn that the inflated rates will drive up stamp duties and FSI (Floor Space Index) costs, making new projects financially unviable. Patel stated, “The steep hikes will deter both buyers and sellers. Farmers will struggle to sell their land, and developers may shelve projects due to unfeasible costs.”

Industry stakeholders fear that the proposed changes could bring the sector to a standstill. Taral Shah, MD of a real estate firm, highlighted that in several cases, jantri rates have surpassed actual land values, creating an imbalance. “The uncertainty around these rates has frozen land deals in many areas. Combined with the housing sector’s sluggish demand, this hike may exacerbate challenges for developers and homebuyers alike,” Shah added.

From a sustainability perspective, such rate hikes could discourage balanced urban development. Developers may shy away from projects in emerging regions, limiting affordable housing options and exacerbating urban sprawl. Civic engagement through consultations with stakeholders is critical to align policy with economic realities and ensure a sustainable real estate ecosystem.

RELATED ARTICLES
- Advertisment -spot_img

Most Popular

Recent Comments

HOMES THAT THINK, SAVE AND HEAL CHARTING INDIA’S SMART LIVING REVOLUTION

HOMES THAT THINK, SAVE AND HEAL CHARTING INDIA’S SMART LIVING REVOLUTION

0
Smart homes are no longer a futuristic concept — they are reshaping how India lives today. Driven by innovation, sustainability, and changing lifestyles, a...

NRI Debates Investing 1 Cr in Properties

0
An NRI planning to return to India faces a classic dilemma—whether to invest ₹1 crore in Bangalore real estate now or wait until he’s...

Hyderabad Logs ₹4,000 Cr in May Property Deals

0
Hyderabad’s residential real estate market recorded transaction values exceeding ₹4,000 crore in May 2025, marking its first rise this year. Spurred by robust demand...
MUMBAI A MARKET LIKE NO OTHER

MUMBAI A MARKET LIKE NO OTHER

0
Mumbai’s real estate market is a marvel — and a paradox. It stands among the world’s most expensive cities to own property, yet it...
Adani Cement Partners with CREDAI to Promote Green Building Practices

Adani Cement Partners with CREDAI to Promote Green Building Practices

0
India's construction landscape, the Confederation of Real Estate Developers’ Associations of India (CREDAI) has entered into a strategic partnership with Adani Cement. This collaboration...