Maharashtra Government Maintains Ready Reckoner Rates for 2026-27 Amid Real Estate Slowdown

Citing the geopolitical situation amid the US-Iran war and the slowdown in the real estate sector, the Maharashtra government has decided to keep the ready reckoner rates unchanged in the state for 2026-27. The Maharashtra government last year had announced an average increase of 3.89% in ready reckoner rates for the financial year 2025-26, following a two-year gap.

Prior to last year, the ready reckoner rate was increased in 2022-23, during which an average hike of 4.81 per cent was announced. In 2020-2021, a meagre 1.74 per cent hike was announced due to the pandemic.

For the year 2026-27, since rates have been kept stable across all locations throughout the entire state, the common citizen's pocket will not face any additional financial strain, the Maharashtra Revenue Ministry said in a statement on March 31.

Considering the global situation and the current slowdown in the construction sector, real estate developer associations, such as CREDAI, have requested the state government to keep these rates stable. After duly considering the inputs, as well as relevant suggestions, objections, and requests, the government has maintained the rate-hike percentage at 'nil' to boost the construction sector. Market values have been determined taking into account the ground realities regarding properties, Chandrashekhar Bawankule said on March 31.

Ready reckoner rates (RR rates) are the minimum rates based on which the government can charge registration fees and stamp duty on a property transaction. They are also used to calculate capital gains for income tax. RR rates are linked to all premiums, charges, and floor space index (FSI) rates payable by real estate developers to municipal corporations. The rates are released at the beginning of the financial year in Maharashtra.

The RR rate, also known as the ‘circle rate’ or ‘guidance value’ in several parts of the country, is the minimum per sq ft rate of a property or land fixed by the state government. The RR rate is deemed the minimum market rate. But if one sells their house or land at a lower rate than the RR rate, the buyer’s stamp duty and other charges are linked to the RR rate. If it is sold for a higher rate than RR rates, the stamp duty is linked to the higher rate, also known as the market rate.

Real estate developers in the Mumbai market warned of a price rise if the ready reckoner rates are increased. According to real estate developers, a rise in ready reckoner (RR) rates, alongside escalating construction costs driven by global geopolitical tensions, is likely to exert dual pressure on property prices in Maharashtra, making homes more expensive for buyers.

However, real estate developers have welcomed the decision of the Maharashtra government to keep the ready reckoner rates unchanged. At a time when global uncertainties, from geopolitical tensions to supply chain disruptions, are influencing capital flows and investor sentiment, stability in policy becomes a critical enabler for sustained growth. From an industry perspective, the real estate sector has demonstrated resilience, but remains sensitive to cost escalations, said Niranjan Hiranandani, Chairman, NAREDCO National.

RR rates directly impact transaction values, stamp duty, and overall affordability; hence, maintaining the status quo provides much-needed confidence to both homebuyers and developers. It ensures that demand momentum, particularly in the mid-income and affordable segments, is not disrupted, Hiranandani said.

According to data shared by the Maharashtra government on March 31, its stamp duty collections fell short of the target of around ₹65,000 crore for 2026-27. As of March 31, the Maharashtra government had collected around 95 per cent (over ₹60,000 crore) of its estimated target.