Mumbai: Even as the Maharashtra government decided to maintain a status quo on the ready reckoner (RR) rates for FY 2024-25, thereby reducing the revenue collection from stamp duty and registrations, some real estate players saw a different reason behind this move.
They called the move ‘politically motivated’ in view of the general elections. They said it has been done to maintain a hold on the vote base, as also indirectly influence those who have been criticising the government policies.
The RR rate is the minimum valuation set by the state government for properties in a particular area. It serves as a benchmark to calculate various taxes, charges, and fees related to property transactions, including stamp duty and registration fees.
“The state government gave a big relief during the pandemic. To recover from that, it was expected to increase the rates. The state government revised the rates in 2022-23, but kept it unchanged in 2023-24. This time too the rates remain unchanged. However, the rates are bound to increase after the government is formed at the Centre,” a reputed developer said, not wishing to be named.
Stating that a hike of minimum 7% in the RR rate is must after the formation of government, the developer said that if not RR then the government will definitely increase the stamp duty by 1%. “After all, the government needs money for the ongoing and the upcoming projects. Though a 1% hike in stamp duty may not generate as much funds as RR rates, it is useful to run the government machinery,” the developer added.
Co-founder of real estate marketplace PropFina, Nitin Singhal said, “It is a major revenue generator for the state government and the reasons for the status quo could be to maintain the current momentum of stamp duty collection. The other reason could be to keep costs of real estate development projects at current levels. Given the number of developments happening currently in every micro market of the Mumbai Metropolitan Region, the supply will exceed the demand shortly if not already. In the interest of maintaining the demand there needs to be stability of costs and above all the state government needs to keep the voters’ trust in them to not to increase any burden while purchasing their dream homes.”
President, National Real Estate Development Council (NAREDCO), Maharashtra, Prashant Sharma said, “The unchanged RR is a positive step taken by the government, which will help improve market sentiments and boost the property market. NAREDCO Maharashtra had requested the state government to not increase the RR rates and we thank them for keeping the rates unchanged. This will be a great step to sustain the growth momentum.”
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