The Maharashtra government is contemplating to revise and raise the Ready Reckoner (RR) rate, the state’s benchmark for property valuation, by up to 10% in the upcoming financial year 2025-26.
Sources indicate that discussions between the finance and revenue departments earlier this week have paved the way for this revision, which could take effect from April 1.
While the move is aimed at boosting the state's revenue through increased stamp duty collection, real estate stakeholders have raised concerns about the potential impact on affordability and market dynamics.
Dr. Niranjan Hiranandani, Chairman of NAREDCO, highlighted the long-standing disparity between RR rates and market rates due to regulatory lags. “Market rates fluctuate based on demand, location, and economic conditions, which RR rates may not fully capture. The increase in ready reckoner rates will elevate costs for developers and homebuyers in an already competitive market. While the revision will increase stamp duty revenues for the government, it could further disincentivize affordable housing. A balanced approach is needed to ensure sustainable growth in the real estate sector,” he stated.
NAREDCO Maharashtra President Prashant Sharma echoed similar concerns, emphasizing the need for a gradual revision. “The anticipated upward revision of RR rates after three years will have significant consequences on the real estate sector, which is a key driver of Maharashtra’s economy. An increase in RR rates directly impacts transaction costs, including stamp duty and registration charges, which may discourage property purchases and affect housing affordability,” Sharma explained.
He further urged the government to adopt a collaborative approach with industry stakeholders to ensure that any increase reflects ground realities such as market demand, regional price variations, and ongoing infrastructure development. “We recommend that any hike in RR rates be complemented by measures such as reduced stamp duty rates or incentivized housing policies to sustain momentum in the sector and support homebuyers,” he added.
Amit Jain, CMD of Arkade Developers Limited, noted that the proposed 10% hike in RR rates could increase Maharashtra’s stamp duty revenue to ₹75,000 crores by March 2026.
“While this move is expected to boost state revenue, it will also raise stamp duty costs, affecting affordability. The disparity between RR rates and market rates persists due to different valuation methods. While RR rates are revised annually, market prices fluctuate daily based on demand and supply. The upcoming hike aims to bridge this gap and align valuations with market trends,” Jain stated.
Developers are also bracing for increased financial burdens. Rohan Khatau, Director of CCI Projects, pointed out that rising RR rates will lead to higher costs for developers through increased premiums, stamp duty, and taxation.
“While the market has been witnessing steady momentum, this adjustment may lead to a short-term recalibration of pricing strategies. Developers must now prioritize cost efficiency and explore innovative financial models to sustain demand,” he said.
The expected revision in ready reckoner rates underscores the state’s efforts to align property valuations with prevailing market conditions while boosting its revenue base.
However, industry experts caution that without a measured approach, the increase could dampen affordability and market sentiment. As discussions continue, all eyes are on the government’s final decision and whether it will strike a balance between fiscal interests and the real estate sector’s sustainability.
