Mumbai: This ‘RRR’ brought no Oscar home but it did offer major relief to homebuyers and the real estate industry with the state government declaring on Friday that the Ready Reckoner rates in Maharashtra would remain unchanged. Rates were expected to be hiked in the new financial year.
A year ago, the government had increased these rates by 8.80 per cent. In 2020-21, the hike was 1.74 per cent. The revision prior to this was before the pandemic, at 5.86 per cent in 2017-’18. The rate is revised at the start of every financial year. In Maharashtra, the property rate fixed for each area is known as the 'Ready Reckoner Rate' and in other parts of the country, it is called circle rate.
Real estate industry approached the state govt to reduce stamp duty rates as well
The real estate industry association had approached the state government with a request to not only to keep the Ready Reckoner Rates unchanged but to also reduce stamp duty rates to boost property sales, in the backdrop of the slowdown in housing sales.
The news has come as a relief to home buyers and real estate industry players alike, as they had been anticipating a hike in the rates.
What was real estate industry's reaction to the decision?
“We welcome the state government’s decision. Homebuyers will have much to cheer about, given that property prices will not go up for now. This move will improve market sentiment, which is currently low, given rising property rates. Now, we can expect more home buyers to come forward before any further increase in prices,” said Pritam Chivukula, co-Founder & director, Tridhaatu Realty and treasurer, CREDAI-MCHI.
Manju Yagnik, vice chairperson, Nahar Group, also applauded the decision, saying, “The real estate industry has been growing consistently over the past two years and this move will only help in adding more stability. Both the developers and the homebuyers will be much relieved by this announcement.”
“It’s a good move by the state government in the benefit of homebuyers who are already affected by the rising home loan interest rates,” said Boman Irani, chairman & managing director, Keystone Realtors, Rustomjee Group.
While sales of residential properties had peaked, post-pandemic, they have been on a decline year-on-year. The Reserve Bank of India too has been upwardly revising the home loan rates, making property purchases dearer. Factors related to the global economic slowdown, including layoffs by technology companies, have contributed to the fall in sales.
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