Steep increase in Jantri rates, rising costs of construction materials and economic meltdown after collapse of financial institutions in the US have impacted real estate in central and south Gujarat districts.
Developers Prakramsinh Jadeja and Pravin Patel admit to having fewer number of queries for buying as well as selling of both residential as well as commercial properties.
The fact is evident from the conspicuous absence of advertisments on attractive offers by property developers in the print media here, which is relatively high during the current festive season.
Several property dealers attribute this slump to the steep hike in Jantri rates announced by the Narendra Modi-led BJP government in the state in the past 12 months.
Jantri is the amount levied by the Gujarat government based on property assessment at the time of purchase.
The stock market crash too has greatly reduced earnings of several individuals, including housewife Jyotsna Vaidya, who had made short-term investments hoping to buy a home from the profits earned.
Two corporate houses, who were planning to construct malls in posh Alkapuri and Padra Road areas in Vadodara, have shelved their plans.
Prices of land in and Vadodara too have shot up tremendously due to increase in Jantri rates.
A property selling at about Rs 15-20 lakh (Rs 1.5 to Rs 2 million) per bigha earlier now costs Rs 60 lakh (Rs 6 million) per bigha, an architect said.
Many hope for a revival in the industry after the setting up of the Nano plant at Sanand and a Rs 6,000 crore (Rs 60 billion) biotechnology park at Savli.