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.
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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.
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