Land and plots show highest appreciation in jaipur

Prices of properties in Jaipur have gone up owing to the recent announce of increase in DLC rates (District Lease Committee) from 15 % to 30 %. This is almost a 100 jump in prices and this has affected the real estate sector in the region. Residential plots in Jaipur will cost you much more than it used to earlier. Prices have shot up by 100 percent and this will have an impact on demand and sale of property in top cities in Rajasthan like Jaipur.

This increase in prices will only be observed in the metro areas for now. However the official implementation of these is yet to occur. This move by the state government is welcomed by the builders but other investors and home buyers are having a tough time investing with such a sudden hike in prices. Residential apartments in Jaipur have also become expensive as the property prices have gone up. The market that has a good stand point now is the resale property market. Today one can demand high price for the property as compared to earlier. New properties and resale of them will reap good benefits if the absorption rate improves in the market.

The demand and absorption in the market can only be seen once the new rates are implemented for a few months. After the few quarters real estate experts will be able to make analysis on how and when this will have an impact on the real estate sector in Rajasthan.

Experts also suggest that the worst affected sector with such a price hike is the affordable housing sector and the lower income group. With the increase in prices of residential apartments in Jaipur and surrounding suburban areas, it will only make it difficult to create affordable housing projects there. The middle income group and the higher income group will be very marginally effected by this price rise, as their disposable income will only go up over the years as the economy becomes stronger. Gopal Das Gupta of the Rajasthan Builders' Association said to media that, "The state government should increase the DLC rates in the state after a survey. The DLC rates are determined after seeing the highest rate of property sold in the area. There are many areas where land prices are less than the DLC rates.

The market is already facing a downturn and commercials properties are purchased as buyers have to pay three times more for registry. After further increase in DLC rates, buying of commercial properties will be discouraged and people will misuse residential structures for commercial activities." Vinay Joshi, a developer from the city said to the media that, "At present, the property prices are already high in the city and out of reach of the common people.

The state government should have waited before increasing the prices." This decision has faced protest from legislators in the city and also to add that the metro construction and the loss of property in important areas of the city has been a burning issue for many.

This decision has come at the time when PM Narendra Modi promised affordable housing for every Indian by 2022. Let’s see how far the Rajasthan government remains in sync with the center’s policies.

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