Ready reckoner rate up across state, homes to cost even more

MUMBAI: Property across Maharashtra is set to get more expensive, as the state government has hiked its ready reckoner (RR) rate by an average of 7% .

RR is a rate guide published by the government annually and determines property rates in different areas.

Stamp duty and registration charges are based on this rate.

The hike not only means homebuyers will pay more stamp duty, but also that project-costs will increase. The real estate sector, already facing a crunch, will be under extra stress, experts said.

Revenue minister Eknath Khadse, however, defended the hike saying, “We were inundated with complaints that sharp hikes in RR rates was causing increases in land rates in cities like Mumbai, Pune and Nashik. Hence, we decided against increasing the rates sharply.” Khadse told the state Assembly the RR rates were only increased by an average of 7% across the state. “Rates for major cities, like Mumbai, will see a 7% rise, while rural areas will see the highest rise of 8%,” he said.

Calling the hike moderate, Khadse said, “The RR was hiked by an average of 14% in 2011, 11% in 2012, 27% in 2013 and 22% in 2014.”

For the RR rates, the city is divided into 750 units. Apart from stamp duty, premiums charged on Floor Space Index (FSI) and other property-related payments are determined by the RR.

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