No Change In Ready Reckoner Rates: Real Estate Developers Welcome State Govt Move

No Change In Ready Reckoner Rates: Real Estate Developers Welcome State Govt Move

The decision is aimed at stabilizing the real estate market and comes amidst efforts to stimulate economic recovery post-pandemic.

Bhalchandra ChorghadeUpdated: Monday, April 01, 2024, 08:30 PM IST
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No Change In Ready Reckoner Rates: Real Estate Developers Welcome State Govt Move |

With the Maharashtra government deciding to keep unchanged the ready reckoner rates, the real estate developers have stated that it's a positive move that will further boost the sector in the state in general and the satellite city in particular. The decision is aimed at stabilizing the real estate market and comes amidst efforts to stimulate economic recovery post-pandemic.

Ready reckoner rates serve as a benchmark for property transactions, determining stamp duty and registration charges. By keeping these rates steady, the government aims to provide relief to homebuyers and developers while fostering a conducive environment for the real estate sector.

Stating that the decision will bring a significant relief for property buyers, home seekers and developers at large, President of CREDAI-MCHI, the apex body of real estate sector in Mumbai Metropolitan Region (MMR), Domnic Romell said, “The decision will promote stability and encourage investment, fostering a conducive environment for growth. We strongly believe that this move is also prompted by the robust contribution of real estate sector into the state economy.”

He also commended the government's foresight in supporting the property market's resilience and look forward to continued collaboration for a thriving real estate landscape.

“For home buyers, stability in these rates means greater predictability in property prices, allowing them to plan their investments with more confidence. With consistent rates, buyers can avoid sudden spikes in costs, making homeownership more attainable and reducing financial uncertainty. Additionally, stable rates can stimulate demand in the real estate market. When buyers perceive prices as stable, they are more likely to enter the market, leading to increased sales and transactions. This, in turn, benefits developers and other stakeholders in the real estate sector by maintaining a steady flow of revenue and business activity," Romell added.

CREDAI-MCHI is aligned with the state government to promote transparency and trust in the market, as buyers feel reassured that they are paying a fair and consistent price for their properties. This fosters a healthier real estate ecosystem where both buyers and sellers can engage in fair transactions.

"Overall, the impact of stable ready reckoner rates and stamp duty on the real estate sector in MMR is significant, as it supports market growth, encourages investment, and enhances affordability for home buyers, contributing to a more robust and sustainable real estate landscape."

Echoing similar feelings, Founder President of CREDAI MCHI Raigad and Managing Director of Prajapati Constructions Ltd, Rajesh Prajapati said, “Since most premiums are calculated on the basis on RR values, this move will help in putting a brake on the cost increment in execution of real estate projects. We welcome the state government's foresight in encouraging the real estate sector and look forward to continued support for the property market.”

Another prominent builder, on condition of anonymity, said, "It's a very good news and positive move for end user. However, in Navi Mumbai, the City and Industrial Development Corporation (CIDCO), has base rates which are high. Since redevelopment is minimum in Navi Mumbai, it matters a little. Also, stamp duty is 1 percent higher in satellite city than Mumbai which is a point of concern. Added to that is the people in Navi Mumbai have to pay transfer charges to CIDCO which are at par with the stamp duty. This makes real estate expensive and affordable housing beyond common man's reach."

President of CREDAI BANM, Vasant Bhadra said, “The last year was good for the real estate sector and we hope this year will be good too. We were wondering that we may face issues if the ready reckoner rates are increased post elections, but it didn’t happen. The state government has also maintained that it will continue with the same rates for the entire year which is a welcome move for the buyers and sellers.”

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