Jaipur Development Authority Reduced Reserve Price Of Land By 25-40%
Taking note of the prolonged slump in the real estate market, the Jaipur Development Authority (JDA) officially reduced the reserve price of uninhabited land in its region by 25-40% in U2 and U3 areas as well as less populated areas of U1.
The proposal received the nod at the JDA’s meeting, chaired by urban development and housing (UDH) minister, on Wednesday. JDA had issued the order for the same earlier.
At the meeting, a decision was also taken to reduce the reserve price of three upcoming housing schemes by Rs 2,000 per sq m. These are housing schemes coming up in Abhinav Vihar, Surya Vihar and Uday Nagar Vistar. The rates have been revised as there were only a few applicants for the scheme, despite several attempts, said a JDA official.
JDA has not touched the reserve prices of land in existing developed colonies, the rates of vacant and less populated land in U1, U2 and U3 areas have been slashed.
The revised prices will bring down land rates heavily in zones 9, 10, 11, 12, 13 and 14. JDA has reduced rates from Rs 14,000/12000 per sq m to Rs 10,000 in the U1 area of Zone 9. Similarly, in the U2 area of Zone 9, it has reduced the reserve price from Rs 10,000 to Rs 8,000.
This is for the first time in a decade that the reserve price for JDA land is being reduced in Jaipur. In 2015, the JDA had hiked the land reserve prices in several areas by six times even when the real estate sector was witnessing a slump.
A member of CREDAI said, in the last few years, the JDA had increased the reserve price by nine times in the city. They had requested the state government to rationalise the price for both commercial and residential properties as this would send a positive message to buyers. However, the JDA should have considered all city areas while revising the reserve prices.
After this revision, plots/flats in the outer colonies of Jaipur will become affordable. Industry experts and government officials believe that the rate cut will lead to price correction and boost the sluggish market as more homebuyers will be keen to invest in property.
The move is also expected to benefit the real estate developers in the city. At the time of land conversion, approval of layout plan, the JDA had imposed fees as per the reserve price. The revision of rates will bring the project cost down.
Source Link- https://timesofindia.indiatimes.com/.