Maharashtra Government Considers 10% Hike in Ready Reckoner Rates; Real Estate Sector Expresses Concerns
The Maharashtra government is considering a 10% increase in the Ready Reckoner (RR) rates, the benchmark for property valuation, potentially taking effect from April 2024. The move aims to boost state revenue but has raised concerns among real estate stak
MaharashtraReal EstateReady ReckonerProperty ValuationStamp DutyReal Estate MaharashtraJan 29, 2025
This revision, which could take effect from April 1, is a result of discussions between the finance and revenue departments.
The primary aim of this increase is to boost the state's revenue through higher stamp duty collections.
However, the real estate sector has expressed significant concerns about the potential impact on affordability and market dynamics.
Dr.
Niranjan Hiranandani, Chairman of NAREDCO, highlighted the long-standing disparity between RR rates and market rates.
“Market rates are highly dynamic and fluctuate based on demand, location, and economic conditions, which RR rates often fail to capture fully.
The increase in ready reckoner rates will elevate costs for both developers and homebuyers, particularly in an already competitive market.
While the revision will certainly increase stamp duty revenues for the government, it could further disincentivize the development of affordable housing.
A balanced approach is necessary to ensure sustainable growth in the real estate sector,” he stated.
NAREDCO Maharashtra President Prashant Sharma echoed similar concerns, emphasizing the need for a gradual and well-considered revision.
“The anticipated upward revision of RR rates after three years could have significant consequences on the real estate sector, which is a key driver of Maharashtra’s economy.
An increase in RR rates will directly impact transaction costs, including stamp duty and registration charges, which might discourage property purchases and affect housing affordability,” Sharma explained.
Sharma further urged the government to adopt a collaborative approach with industry stakeholders to ensure that any increase reflects ground realities such as market demand, regional price variations, and ongoing infrastructure development.
“We recommend that any hike in RR rates be complemented by measures such as reduced stamp duty rates or incentivized housing policies to sustain momentum in the sector and support homebuyers,” he added.
Amit Jain, CMD of Arkade Developers Limited, noted that the proposed 10% hike in RR rates could potentially increase Maharashtra’s stamp duty revenue to ₹75,000 crores by March 2026.
“While this move is expected to boost state revenue, it will also raise stamp duty costs, affecting affordability.
The disparity between RR rates and market rates persists due to different valuation methods.
While RR rates are revised annually, market prices fluctuate daily based on demand and supply.
The upcoming hike aims to bridge this gap and align valuations with market trends,” Jain stated.
Developers are also bracing for increased financial burdens.
Rohan Khatau, Director of CCI Projects, pointed out that rising RR rates will lead to higher costs for developers through increased premiums, stamp duty, and taxation.
“While the market has been witnessing steady momentum, this adjustment may lead to a short-term recalibration of pricing strategies.
Developers must now prioritize cost efficiency and explore innovative financial models to sustain demand,” he said.
The expected revision in ready reckoner rates underscores the state’s efforts to align property valuations with prevailing market conditions while boosting its revenue base.
However, industry experts caution that without a measured approach, the increase could dampen affordability and market sentiment.
As discussions continue, all eyes are on the government’s final decision and whether it will strike a balance between fiscal interests and the real estate sector’s sustainability.
NAREDCO, the leading real estate association in Maharashtra, represents a wide range of stakeholders in the real estate industry, including developers, builders, and property investors.
The organization is committed to promoting sustainable and inclusive growth in the real estate sector by collaborating with the government and other stakeholders to address regulatory and market challenges.
Arkade Developers Limited, a prominent real estate company in Maharashtra, has been actively involved in various residential and commercial projects across the state.
The company is known for its commitment to quality and innovation, striving to deliver value to its customers and contribute to the overall growth of the real estate market.
Frequently Asked Questions
What is the Ready Reckoner rate?
The Ready Reckoner (RR) rate is the benchmark for property valuation set by the government, used to determine stamp duty and other transaction costs for property transactions.
Why is the Maharashtra government considering a 10% hike in RR rates?
The government aims to boost its revenue through increased stamp duty collections by aligning property valuations more closely with market conditions.
What are the concerns raised by the real estate sector about the RR rate hike?
Real estate stakeholders are concerned that the increase could affect housing affordability, discourage property purchases, and impact the overall market dynamics.
How often are the RR rates revised?
RR rates are typically revised annually, but the proposed 10% hike is the first significant increase in three years.
What measures do industry experts recommend to mitigate the impact of the RR rate hike?
Experts recommend a gradual revision, reduced stamp duty rates, and incentivized housing policies to support homebuyers and sustain momentum in the real estate sector.
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