The ongoing discord surrounding the annual increase in market guideline rates has persisted for over 16 years. Once again, the Confederation of Real Estate Developers’ Associations of India (CREDAI) has voiced its objection to the state’s method of raising these guidelines. Despite warnings from the Supreme Court, the state has opted to accept the district-level proposals for increasing market price guidelines, with the revised rates set to take effect from April 1, 2025. Notably, the construction and provision rates for the year 2024-25 remain unchanged.
Manoj Singh ‘Mic,’ President of CREDAI Bhopal, expressed strong disapproval of this approach, stating that their opposition is not solely based on the increase in guideline rates but on the flawed, non-scientific, and impractical process behind it.
Singh pointed out that the recent Supreme Court order clearly indicates that circle rates should be determined through a scientific, transparent, and expert-driven process that truly reflects the real market prices. He highlighted three significant concerns:
- Lack of Transparency: The method of determining the increase lacks transparency, with no public records available showing the rationale behind the districts’ proposals for raising rates.
- Burden of Provisioning: The ongoing reliance on the value addition structure will continue to impose an unexpected burden on stakeholders.
- Stagnant Investment and Demand: The guideline rate hikes do not align with actual market investment or demand, and they risk stifling growth, jeopardizing large-scale initiatives like “Housing for All.”
In response, CREDAI has reiterated its appeal to the state government, urging them to:
Review the rates through an Independent Specialist Committee.
Make year-wise, transparent data accessible to the public.
Postpone any increase until a more scientific and transparent process is implemented.
Singh further emphasized the need for the state to take a lesson from progressive states like Gujarat, Maharashtra, and Telangana, which prioritize stability, increased investment, and policy transparency. He argued that continuously increasing rates might not generate sustainable long-term revenue, but instead create market instability.
As this debate continues, CREDAI calls for a more structured and data-driven approach to guide the future of real estate in the state.
