Maharashtra to Hike Ready Reckoner Rate by 10% from April 1
Senior officials and the revenue minister met to discuss the proposed 10% increase in the Ready Reckoner (RR) rate, which could take effect from April 1, 2024. The hike is expected to impact property prices and the real estate sector.
Ready Reckoner RateProperty PricesReal EstateMaharashtra GovernmentStamp DutyReal Estate PuneJan 29, 2025
According to an official who attended the meeting, districts have recommended the hike, which is currently under evaluation by the Maharashtra government.
If approved, the new RR rate will be effective from April 1, marking the start of the 2025-26 financial year.
The RR rate, which is the state government's assessment of property value, is crucial for determining stamp duty and registration charges.
It plays a vital role in property valuation.
Despite opposition from developers, who argue that the increase will make properties more expensive and negatively impact the real estate sector, the cash-strapped government is likely to proceed with the hike.
\
Frequently Asked Questions
What is the Ready Reckoner (RR) rate?
The Ready Reckoner (RR) rate is the state government's assessment of property value, used to determine stamp duty and registration charges. It is crucial for property valuation.
When is the proposed 10% increase in the RR rate expected to take effect?
The proposed 10% increase in the RR rate is expected to take effect from April 1, 2024, at the start of the 2025-26 financial year.
Why is the government considering this increase?
The government is considering the increase to boost state revenue, as stamp duty and registration are the third-highest generators of revenue after GST and sales tax. The government is also in need of funds for various schemes.
What are the potential impacts of the RR rate increase on the real estate sector?
The increase could make properties more expensive, leading to a slowdown in property sales and registrations. It could also result in an accumulation of unsold apartments and negatively impact the real estate market.
Is the proposed GIS mapping for a more realistic RR rate currently feasible?
No, the proposed GIS mapping for a more realistic RR rate is not currently feasible, as it has only been completed for rural parcels and not for urban areas. The work is incomplete and can be implemented only in the next financial year.
Related News Articles
Moody's Warns of Ratings Downgrade for 6 US Banks Due to Commercial Real Estate Exposure
Six US regional banks face potential ratings downgrade due to commercial real estate loan exposure, highlighting asset quality and profitability pressures from high interest rates.
Indian Real Estate Market Sees Strong Demand, Oberoi Realty Records Impressive Q1 FY25 Results
Oberoi Realty Limited has reported a consolidated revenue of Rs 1,441.95 crore for Q1 FY25, solidifying the Indian real estate market's position as a preferred investment avenue.
Jenika Ventures Expands Footprint in South India with New Bengaluru Office
Jenika Ventures, a real estate consultancy firm, has expanded its operations in South India with the opening of a new office in Bengaluru.
Eastern Pune Witnessing Real Estate Surge with Metro Phase 2 Development
Pune's Metro Phase 2 is reshaping the real estate market, particularly in areas like Kharadi, Viman Nagar, and other peripheral regions, as property values soar.
ASK Property Fund Eyes Luxury Housing Market with New Fund
ASK Property Fund, a real estate investment arm of Blackstone-backed ASK Group, has launched its first dedicated luxury housing fund in collaboration with India Sotheby’s International Realty. The fund aims to capitalize on the growing demand for high-end
AP CM N Chandrababu Naidu Pledges Full Support to Real Estate Sector
Andhra Pradesh Chief Minister N Chandrababu Naidu has assured full support to the real estate sector, predicting significant growth in the coming years. He emphasized the importance of proper permissions and sustainable development.