The Maharashtra state government has agreed not to increase the ready reckoner rates in the state for the fiscal year 2023–2024, which will come as a significant relief to homebuyers and real estate developers.
The RR rate serves as a reference point for real estate transactions in a particular area and is used to compute taxes and stamp duty fees. These rates also influence the development fees and other premiums that builders must pay to civic organisations.
The real estate sector applauds the Maharashtra government’s wise decision to continue using the ready reckoner rate in 2023–2024.
According to Niranjan Hiranandani, MD of the Hiranandani Group, “The move will undoubtedly be positive for the sentiment of purchasers and ease the builder under price inflation, particularly those creating affordable housing.”
As per Hitesh Thakkar, vice president of the NAREDCO (National Real Estate Development Council) Maharashtra, “This action relieves homebuyers of the burden of the increase in stamp duty, and it is anticipated that this will boost the current sales pace. The mandatory payments that must be made by the developers and ultimately raise the price of the flat for homebuyers would also remain the same.”
The government raised the ready reckoner rates by an average of 8.8% for properties in Maharashtra last year, following a break of four years.
The rates in metropolitan Mumbai had climbed by 2.32%, while the average increase for houses was 9.48% in the Thane Municipal boundaries.
In Mumbai, the government had furthermore imposed a 1% metro levy on stamp duty, raising the price of purchasing real estate in the city. In Mumbai, along with the metro cess, the applicable stamp duty rates are 6%, while they are 7% in other areas of the state.
