Maharashtra’s real estate developers and buyers can breathe easy as the state government has decided to not raise the ready reckoner (RR) rates in the state for 2023-24. This means that buyers will not see any jump in prices anytime soon.
Ready Reckoner Rates in Mumbai are the minimum rates at which properties are valued by the state government, and they are used to calculate the stamp duty and registration charges for property transactions.
Any hike in RR would be catastrophic for the demand, especially in the affordable sector, given a high-interest rate regime and low demand in most categories. Demand in most housing categories except the luxury segment has stalled off late.
Some news reports earlier claimed that the state government was planning to hike the RR, causing panic among real estate industry leaders in the western state. Representatives of industry bodies in Maharashtra were planning to meet government officials, including Maharashtra chief minister Eknath Shinde, to discuss the matter. It is not clear whether the meeting.
Ready Reckoner Rates refer to the minimum rate at which the properties (land and buildings) within a particular area are valued by the state government for the calculation of stamp duty and registration charges. The rates are updated and published by the state government annually, usually in the month of January.
The Ready Reckoner Rates are determined based on various factors such as the location, infrastructure, amenities, and demand for the area. The rates vary from one area to another, and within an area, they may differ for different types of properties, such as residential, commercial, and industrial
The Ready Reckoner Rates play a crucial role in determining the stamp duty and registration charges that need to be paid by the buyer while purchasing a property. The stamp duty is calculated as a percentage of the property’s value, as per the Ready Reckoner Rates. Hence, the higher the Ready Reckoner Rate, the higher the stamp duty and registration charges will be.
