Even as revised jantri rates come into force from Saturday, the Gujarat government announced concessions for the real estate industry, reducing chargeable (paid) FSI and premium for converting agricultural land to non-agricultural (NA) land. Jantri rate refers to government-determined minimum value of property.
The concessions offered by the state government will mean that residential affordable housing (RAH) units will not see a hike in prices, but prices of houses of other categories – R1, R2 TOZ and Tall Buildings – will increase substantially. According to real estate industry estimates, prices of housing units in all categories other than RAH units, are expected to rise by about 20 % after new jantri rates take effect.
The state government, meanwhile, clarified on Thursday that all building plans submitted to respective authorities before the new jantri regime comes into force, will attract both the old jantri as well as old chargeable FSI rules.
Paid FSI has been cut by 50% in all three categories of RAH units. For other residential units – those under R1, R2 and TOZ (transit oriented zones) – the chargeable FSI has been slashed from 40% to 30% of the jantri rate. For tall buildings, the chargeable FSI for builders has been slashed from 50% of the jantri rate to 40% of the jantri rate.
The chargeable premium for converting land from agriculture to agriculture has been slashed from 25% of the jantri rate to 20% of the jantri rate. For converting agricultural land to non-agricultural land, the premium has been slashed from 40% to 30% of the jantri rate. The government also announced that despite doubling of jantri rates, the construction charges will increase by 1.50 times and 1.80 times for office and residential units respectively