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The Gujarat government is reportedly considering another increase in jantri rates later this year. Jantri rates are used to determine the value of land and properties for taxation purposes. The government had already doubled the jantri rates effective from April 15, but they are now said to be looking to harmonize the rates with the market price of land in different areas. This is expected to have the biggest impact on outgrowth areas of cities, where land prices have skyrocketed but jantri rates are still low.
A top source in the state government explained that survey work of these value zones is expected to take a few months, after which some value zones could witness a manifold increase in jantri post-Diwali. Teams may also be sent to Mumbai to study the dynamic jantri price pattern being implemented in the metro city.
Jantri is categorized into three types - agricultural, industrial, and other - and some newly developing areas in Ahmedabad are currently charged agricultural jantri rates. Once these are evaluated as value zones, the jantri will see a huge spurt as the land price of these areas is considered.
While this exercise will result in increased income for the state government in the form of stamp duty on properties that are registered, it will also mean that real estate buyers will have to pay higher amounts of stamp duty and registration fees. The government's earlier decision to double the jantri rates had already faced resentment from various quarters, mainly from the real estate sector, and implementation of the new rates was deferred from February 5 to April 15.
It is expected that the probable rise in jantri rates will have the biggest impact on outgrowth areas of cities, where land prices have skyrocketed and jantri rates are much lower. Real estate buyers will have to cough up higher amounts of stamp duty and registration fees, but the increased income for the state government will be in the form of stamp duty on properties that are registered.
In recent years, there has been a significant increase in property prices in Gujarat, particularly in cities such as Ahmedabad and Surat. This has led to a surge in demand for residential and commercial properties, driving up land prices in outgrowth areas of cities. The government's decision to increase jantri rates comes after a decade of the same rates being in place, reflecting the increasing value of properties and land in Gujarat.
Despite the potential negative impact on the real estate sector, the government's move to increase jantri rates could also help to bring greater transparency to the property market in Gujarat. By harmonizing jantri rates with market prices, the government could reduce the likelihood of undervaluation and underreporting of property transactions, which have been a concern in the state in the past.
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