Home buying in Gujarat may be tough, CREDAI expresses displeasure over circle rate hike

Owning a home is a big dream for the middle class, but the Gujarat government's plan to hike Jandri Tariff i.e. Circle Tariff by 200 to 2000 percent has now made this dream difficult. This problem has become a matter of concern not only to the common man but also to the builders. Builders feel that if the price of houses goes up, the number of customers will also decrease. That is why CREDAI i.e. Confederation of Real Estate Developers Association of India has expressed its objection against this proposal of the government. Credai Chairman Dhruv Patel refused to accept the hike in circle fares. He says that this sudden increase after 12 years will cause huge loss to the builders. CREDAI urged the government to reconsider the decision. CREDAI has criticized the government's decision to raise tariffs so much without a hearing. Builders believe that the hike could stall development work in the state and generally raise house prices by 30 to 40 percent. CREDAI has made this request to the government, asking the government to give time till 31 March 2025 to the applicants to register their objections. He says the project will have a direct impact on home buyers. Its economic burden will increase especially on the middle class. Even earlier, there were talks between the builders and the government regarding public charges, but this time the situation has become more complicated. Risk of downturn in real estate sector: Due to such a huge increase in Jandri prices, buyers may shy away from buying houses, which will add to the slowdown in the real estate sector, builders say. It is clear that if the utility charges increase by 30-40 per cent, it will have a direct impact on the pocket of the customers, due to which it is believed that development works in the state may also come to a standstill. Do you know what Jantri ratio is in simple language? It is called Annual Report of Jandri Rates. It is the minimum rate levied by the state government on the property that has changed ownership. In simple language, when one buys a new property, one has to register it at the same fee fixed by the state government. This rate varies in different cities. Not only this, but its rates are increased or decreased by many factors including property type, location and its size. Prices also vary across residential, commercial and institutional properties.