Maharashtra Govt Maintains Ready Reckoner Rates For FY 2024-25, Brings Relief To Property Buyers

The Maharashtra government has opted to retain the existing ready reckoner (RR) rates for the fiscal year 2024-25. This decision ensures that the RR rates set for the previous fiscal year, 2023-24, will continue to apply from April 1 until further amendments are made. The RR rate, established by the state government, serves as the minimum value for land, residential, or commercial properties, below which property transactions cannot legally occur. Additionally, it acts as the benchmark for calculating stamp duty payable to the state government.

The move by the government follows considerations surrounding the ongoing Lok Sabha election process and reflects a response to bipartisan opposition against any upward revision of RR rates. Legislators from both ruling and opposition parties had voiced concerns, highlighting the adverse impact such hikes could have on the realty sector, which is still recuperating from the effects of the COVID-19 pandemic.

In a notification issued by the State Revenue Department's Deputy Secretary, Satyanarayan Bajaj, the government's decision was communicated to the Inspector General of Registration and Controller of Stamps. This annual adjustment, effective from April 1, maintains consistency in RR rates, ensuring stability in the real estate market.

Maharashtra has consistently demonstrated robust performance in stamp duty and registration fee collections, standing out among other states. In recent years, the state government has witnessed substantial revenue generation through these channels, indicating the pivotal role of the real estate sector in bolstering state finances.

Industry leaders have welcomed the government's decision, citing its positive implications for market sentiment and property transactions. Prashant Sharma, President of NAREDCO Maharashtra, lauded the move, emphasising its potential to sustain market growth momentum. Similarly, Pritam Chivukula, Vice President of CREDAI MCHI, expressed optimism regarding improved market sentiments and heightened homebuyer interest.

The decision to maintain RR rates is expected to instil confidence among consumers and investors, stimulating further activity in the real estate market. Vedanshu Kedia, Director of Prescon Group, highlighted the positive impact on consumer confidence and market sentiment, anticipating increased investment and transactions. Rohan Khatau, Director of CCI Projects, lauded the proactive stance of the government, particularly as the auspicious occasions of Gudi Padwa and Akshaya Tritiya approach.

Ready Reckoner Rates serve as a crucial determinant in property transactions, influencing stamp duty and registration charges payable by buyers. These rates, factoring in location, infrastructure, amenities, and demand, play a pivotal role in shaping the dynamics of the real estate market, ensuring transparency and fairness in property transactions.