the pain for developers and consumers is only set to increase,” says Sunil Mantri, president, National Real Estate Development Council. In 2008-2009, these charges accounted for about 10% of the cost of an apartment, Mantri said.
Developers also say, that now, since property tax is calculated on RR rates, the increase will pinch the existing occupiers as well, with higher tax outgo.
In Mumbai, over the last six years the RR rates have almost doubled. Mumbai city is divided into 737 development pockets or value zones. The RR rates have been increased by less than 20% in 711, or 96% of zones, while the remaining 26 areas have seen an increase of close to 20% in these rates.
Like last year, up-market locations in south and central Mumbai Worli, Prabhadevi, Mahalaxmi, Parel and Eplphinstone saw the highest increase in RR rates.