Tuesday, April 5, 2011

New Jantri (ASR Rates) Updates

Ahmedabad: The state government has clarified its stand on the phenomenal increase in new jantri rates, but the real estate industry is not pleased. The new jantri rate, or government assessment of the value of real estate properties, has increased by up to 400%.
Now, consumers will have to shell out much more for their properties and developers fear this may lead to a slowdown in business. The new rates, implemented from April 1, are more realistic and closer to market rates. Property consultant Hitesh Shah says the increase will have to be borne by consumers.
Sample this: As per old jantri, a minimum stamp duty (6%) was calculated on a 1,000-sqft flat (two bedroom) in Satellite area. As per the old rates, the valuation of the same sized flat was estimated to be anywhere between Rs 4.7 lakh and Rs 7.5 lakh.
As per the new jantri, the price of the same flat is estimated between Rs 18 lakh and Rs 30 lakh. Similarly, the valuation of a 1,000-sqft flat in Vastrapur has gone up from around Rs 7 lakh to anywhere between Rs 23 lakh and Rs 31.75 lakh. Builders believe reducing stamp duty will help the salaried class.
“It is the right time to reduce stamp duty in favour of property buyers, especially salaried class,”

New jantri rates include relief measures: Govt

Gandhinagar: In view of the major hue and cry over a sharp rise of up to 400 per cent in jantri rates, the Gujarat government on Tuesday came up with a clarification, enumerating several categories of real estate properties which have been allowed relief in the new rates. A senior official in the state revenue department said, “A number of relief measures are part of the jantri. But because there was considerable confusion about what was being offered, the government decided to issue a statement clarifying things.”
Thus, properties with unfinished construction and slabless construction will be assessed as having 20 per cent relief in the jantri rate. There will be a 1.2 per cent per annum depreciation on old construction as against 1 per cent per annum prevailing till now. Jantri, also called annual statement of rate (ASR), is the government assessment of the market rate of a real estate property.
Based on these rates, government charges stamp duty. Jantri rate is also used for payments against land acquisition. The long-awaited new rates came into force on April 1, after a gap of five years.
“In case a cellar is used for commercial purpose, its ASR would be 20 per cent less”, said the clarification, issued by government spokespersons Jay Narayan Vyas and Saurabh Patel, adding, “Different rates have been kept for shops with or without frontage, and on the first or second floor, to give the benefits accordingly.”
Then, there are different rates for covered car parking and open car parking in residential and commercial areas.
Further, the residential complexes on the third floor and above will be assessed as having a 10 per cent lower ASR than those from the ground to second floor.
“In cases where residential houses are constructed for the financially backward sections under a government scheme, the stamp duty will be lower. It will be levied on the allocation price of the residence”, the clarification said, adding, “Rates for the properties falling in interior parts and for the properties falling on the main road are different. This will allow people to get benefit in stamp duty accordingly.”

Guj builders say no to property registeration

Ahmedabad: In order to oppose the new jantri rates, over 2000 builders from 22 cities of Gujarat will not go for property registrations till May 5, 2011. A resolution was passed in a meeting jointly organised by Confederation of Real Estate Developers’ Association of India and Gujarat Institute of Housing and Estate Developers (GIHED). Suresh Patel, president of GIHED said builders from major citiesin Gujarat attended the meeting. Patel demanded that the government should withdraw the new jantri rates, which are illogical. Jaxay Shah, president of CREDAI, Gujarat chapter said, “ The hike in jantri would affect 50 lakh farmers, three crore people residing in urban areas and over 4,000 builders."

Area wise Jantri rates:

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