Mumbai: After a two-year gap, the Maharashtra government has revised the ready reckoner (RR) rates, effective from April 1. The move, which determines property values for taxation and stamp duty calculations, has sparked concerns among real estate stakeholders, who believe it will significantly burden homebuyers.
Keval Valambia, Chief Operating Officer (COO) of CREDAI-MCHI, representing the real estate industry in the Mumbai Metropolitan Region (MMR), stated that the revised rates will not necessarily boost the state’s revenue. Instead, they have led to an escalation in approval costs and premium payments that developers must pay to urban local bodies and other competent authorities.
"The sharp increase in RR rates, especially in Thane, will have a major impact. Homebuyers on the verge of purchasing properties may now delay their decisions. Even a price increase of Rs 1 lakh can make it difficult for them to proceed, ultimately affecting home sales. This could result in a loss for the state's registration and stamp duty department," Valambia explained.
He further noted that the revision in RR rates has now escalated the construction costs, and these additional expenses will inevitably be passed on to buyers, increasing the financial strain on homebuyers.
For the financial year 2025-26, the Maharashtra government has implemented an average RR rate hike of 3.89% across the state. In Mumbai, the average increase is by 3.39%, while Thane and Solapur have seen even steeper hikes. Developers fear this rise will further impact the affordable housing segment and the overall real estate market.
Hitesh Thakkar, Vice President of NAREDCO West, echoed similar concerns, highlighting that many redevelopment projects have become unviable due to increasing premiums and taxes directly linked to RR rates now.
Interestingly, while most areas have seen an increase, certain parts of Mumbai have recorded a drop in property prices. Localities such as Mulund East, Borivali, and Bandra have witnessed price corrections. For instance, in Mulund East, on the eastern side of the Eastern Express Highway, the price of open land has reduced by 20%.
