The state revenue department of Maharashtra recently hiked the ready reckoner rates, by an average rate of 5.86% across the state.
In Mumbai, the ready reckoner rates have been increased by 3.95%, as opposed to 7% last year, while in Pune the rate has increased by 8.5% against 11% last year. Ready reckoner rates are the minimum rate at which the sale or transfer of a plot, built-up house, apartment, or a commercial property, can be registered. These rates form the basis for calculation of stamp duty and registration charges for a property.
Impact of increase in ready reckoner rates in Maharashtra
The rational for increasing ready reckoner rates is to reduce the gap between the ‘going market rate’ at which transactions are happening and the government-prescribed minimum value for registration of properties. Demonetisation has adversely affected the real estate markets, especially the residential sector, in Maharashtra.
The increase in ready reckoner rates will further increase the cost of buying, marginally. However, sales are unlikely to be impacted further, as the market is primarily driven by end-users and sale transactions have already reduced to their lowest level in the past couple of months. Thus, we do not expect much impact on market sentiment.