No change in Maharashtra Ready Reckoner Rate 2023: Why Mumbai homebuyers should be happy

Maharashtra Ready Reckoner Rate 2023: The Maharashtra Government has decided not to change the ready reckoner (RR) rates for FY 2023-24.

Maharashtra Ready Reckoner Rates 2023-2024
Maharashtra Ready Reckoner Rates 2023-2024 have not been changed. Representational image

Maharashtra Ready Reckoner Rate 2023: The Maharashtra Government has decided not to change the ready reckoner (RR) rates for FY 2023-24. The decision will benefit homebuyers across the state including cities like Mumbai where property prices have shot up in the last few years. Experts say that home buyers will not see any increase in property prices due to ready reckoner rates for a year.

“This is a positive step taken by the government which will help improve market sentiments and was the need of the hour with property prices on an upswing. Also, we hope the government can actually reduce the ready reckoner rates which will bring the cost of homes down and will be a big benefit to the home buyer,” said Sandeep Runwal, President, NAREDCO, Maharashtra.

According to Kaushal Agarwal, Chairman of Guardians Real Estate Advisory, the Maharashtra government’s decision to call off the RR rate hike could have far-reaching effects on the state’s real estate market.

Also Read: How property prices in MMR changed between 2015 and 2022

“This decision not only provides developers and property buyers with a sigh of relief but also contributes to the property market’s stability and affordability. The government has signalled its commitment to supporting the growth of the real estate industry, which is one of the key drivers of economic activity in the state, by maintaining the RR rates unchanged. Furthermore, this move is expected to boost consumer confidence and improve property market sentiment, encouraging more investments and transactions, said Agarwal.

What is the Ready Reckoner rate?

The Ready Reckoner Rates play an important role in determining the stamp duty and registration charges that need to be paid by the buyer while purchasing a property. The RR rate is basically the minimum value considered for paying the stamp duty to the state government or capital gains tax to the Central Government.

RR rates are determined based on various factors such as 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.

“Home buyers will have much to cheer about given that property prices will not go up as for now. This move will improve market sentiments which were presently low, given rising property prices. Now, we can expect more and more home buyers to come forward and buy their home before any further increase in property rates,” said Pritam Chivukula, Co-founder & Director, of Tridhaatu Realty and Treasurer, CREDAI MCHI.

Also Read: From Dubai, Singapore to Mumbai, how many sqft of prime property you can buy in Rs 50 lakh

Record revenue collection in Mumbai

The Mumbai city areas under BMC jurisdiction witnessed sales registration of 12,421 units in March 2023, contributing over Rs 1,143 crore to the state revenues. Of the total properties registered, 84% were residential while 16% were non-residential properties. With a revenue collection of Rs 1,143 crore in March 2023, Mumbai registered its highest revenue collection since April 2022, according to a report by Knight Frank India.

The report says that in March 2023, apartments measuring 500 square feet (sqft) to 1,000 sqft continued to be purchasers’ preference, accounting for 48% of all apartments. Apartments with less than 500 sqft. saw a marginal decline in market share from 35% in January 2023 to 34% in March 2023.

Also, homebuyers’ buying patterns on housing shifted in March, with homes worth Rs 2.5 crore and below accounting for 82% of registered properties compared to 87% in February 2023, and Rs 2.5 crore above accounting for 17% of all registered houses compared to 14% in February 2023.

Get live Share Market updates and latest India News and business news on Financial Express. Download Financial Express App for latest business news.

First published on: 01-04-2023 at 11:59 IST