The Maharashtra government on Friday increased the ready reckoner rates of properties by an average 1.74 per cent. The new rates will come into effect from September 12, an official statement from the office of the Inspector General of Registration and Controller of Stamps said.
Ready reckoner rate, also known as circle rate, is the minimum price below at which a property can be registered in case of its transfer.In May, the government had decided to keep the rates unchanged for the current financial year, as it was not able to assess the new rates in wake of the current COVID-19 crisis.
The government has increased the rates after it kept it unchanged for two consecutive years 2018-19 and 2019-20, after increasing the rates by 3.9 per cent in 2017 following a slowdown in the sector.
While the government has increased the RR rates for the rest of Maharashtra; for Mumbai, excluding the metropolitan region, it has reduced the rates by 0.6 per cent.
The decision also comes days after the government decided to reduce the stamp duty rates by almost 50 per cent to 2 per cent till December and later to 3 per cent till March 2021, from the existing 5 per cent, to give a boost to the sluggish real estate sector.
According to the official document, for the rest of the metropolitan region, which includes Thane, Palghar and Raigad, the rates have been increased by 1.42 per cent, 2.37 per cent and 3 per cent, respectively.
Bringing down the RR rate considerably at this period is something that everybody was looking forward to, as it would have given some room to developers to bring down the prices. An an increase of RR rates further limits the room for them to bring down the price for developers & builder.