Gurgaon: Homebuyers in Maharashtra can rejoice as the state government has decided to keep the land ready reckoner (RR) rates unchanged for the fiscal year 2025. This decision was confirmed through a notification issued by the state revenue department on March 31, stating that the RR rates will remain the same as the previous year. This marks the fourth consecutive year without any revision in RR rates since the last update was made in the fiscal year 2018-19.
The announcement has been well-received by experts in the real estate industry. Hitesh Thakkar, Vice President of NAREDCO West Maharashtra, expressed that this decision was in line with the industry’s demands. Keeping the RR rates steady prevents an increase in the cost of houses, thus easing the financial burden on homebuyers.
In a notable development, Mumbai city, which falls under the BMC jurisdiction, witnessed the registration of 14,411 properties in March 2024, contributing a significant revenue of Rs 1,143 crore for the state government. According to state data, stamp registration increased by 10% year-on-year (y-o-y), while revenue from property registrations experienced a 7% decline on a y-o-y basis.
This dip in stamp duty collections is attributed to the exceptionally high collections in the previous year, following the Centre’s decision to limit tax deductions on capital gains from the sale of residential property after March 31, 2023, as highlighted by Knight Frank India, a prominent real estate consultancy firm.
Anand Gupta, Vice President of the Builders Association of India, noted that property registrations are witnessing an upward trend, and the state’s decision to maintain the ready reckoner rates will further stimulate property sales and sustain the positive momentum in the market.
For those unfamiliar with the term, the Ready Reckoner rate is the minimum valuation set by the state government for properties in specific areas. It serves as a benchmark for calculating various taxes, charges, and fees related to property transactions, including stamp duty and registration fees. These rates are periodically assessed and revised by government-appointed authorities, such as the revenue department or municipal corporation, taking into account factors such as location, market trends, and property characteristics.
Overall, the decision by the Maharashtra government to keep the RR rates unchanged for FY25 is expected to benefit homebuyers by maintaining affordability and supporting ongoing property transactions. This move aligns with efforts to stimulate the real estate sector and encourage continued growth in property sales across the state.
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