Wednesday, April 6, 2011

New Jantri Effect...Postpone New Projects

New jantri rates have pushed real estate developers in Gujarat to postpone or even drop new projects fearing multiple complexities in central as well as local body taxes. Realtors say projects in the hospitality and healthcare sector may be affected.
The hiked jantri rates may create a problem for half-sealed land deals, said President of Gujarat Institute of Housing & Estate Developers (GIHED). “If a developer has purchased a piece of land from a farmer, he was supposed to register the deal as per the old jantri. But with the new jantri, valuation of his property has increased 3 to 4 times,” . It means such deals may be cancelled in bulk and it would result in delay of new projects, he said. Realtor  has proposed three projects under the new slum policy at Vasna, Khokhara and Ambawadi area. According to Brahmbhatt, the new jantri has put a question mark on viability of the proposed residential projects.
Looking at various hurdles developers are expected to encounter for the development of slums, jantri rates should be much lower than adjoining areas, said Vijay Shah, former chairman of Confederation of Real Estate Developers’ Association of India, Gujarat chapter.
Flats in various township projects surrounding Ahmedabad would become dearer by at least 15 per cent, said real estate developer . He said the developers will have to shell out more to buy extra FSI and ultimately they would pass it on to end-users.

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