Property Cost : The Gujarat government has increased the circle rate of property in the state after many years. This decision has surprised both the real estate market and home buyers. Experts believe that due to this increase, house prices can increase by up to 40 percent.
Although property prices are continuously increasing across the country due to demand, there is one state which has increased the circle rate so much that there is a possibility of a 40 percent increase in property prices here. It has been decided to increase the circle rate of property in this state from 200 percent to 2000 percent. After this decision, the prices of both residential and commercial properties will increase.
In fact, the Gujarat government’s recent decision to drastically increase Jantri (circle) rates has raised concerns among real estate developers and buyers. According to News18, the new rates are going to be implemented from April 1. Due to this, concerns have increased in the real estate market about their potential impact on property prices. Industry experts have warned that real estate prices across the state could increase by as much as 40%.
Increase after many years
For the past several years, there has been no significant revision in the circle rates in Gujarat, which is the government’s benchmark for land valuation. The latest offer has seen a sudden increase of 200% to 2,000%. The decision could impact existing and future real estate projects.
What does the Gujarat market say?
CREDAI Gujarat Vice President Tejas Patel said that the real estate sector of Gujarat was performing well, but this decision has stopped many projects. The real estate market of Gujarat, which has an annual value of about Rs 55,000-60,000 crore. This includes many big companies like Adani, Godrej Properties, Mahindra Lifespace, Arvind Smartspace and Parshavnath. Obviously, the impact of this increase in circle rate will be seen on the projects of these companies as well.
The state government earns a lot of money.
The state government has already collected Rs 16,500 crore through stamp duty and registration fees in the financial year 2024-25. With the proposed circle rate hike, the prices of residential and commercial properties are likely to increase significantly, which may lead to a slowdown in market activity.
Still market demand
Gujarat has traditionally had lower property prices compared to major metropolitan cities in India, making it an attractive market for buyers. However, a sudden 40% price hike could make buying a home a daunting task for many. Experts believe the government may reconsider its decision or gradually increase it to reduce the adverse impact on the sector.
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