Maharashtra Government’s Decision on Ready Reckoner Rates Applauded by Realtors

The government of Maharashtra has decided to maintain the existing ready reckoner rates for the financial year 2024-25, signalling stability in property valuation methodologies. These rates, which establish the minimum per square foot value for tax and premium calculations, have remained unchanged since 2022. Stamp duty collections and registration charges have proven to be a significant revenue stream for the government, amounting to nearly Rs 36,000 crore in the fiscal year 2023-24. Real estate developers have expressed their appreciation for this decision, particularly regarding its potential impact on the affordable housing segment. 

Dr. Niranjan Hiranandani, Founder of Hiranandani Group and Chairman of National Naredco, underscored the adverse effects of rate increases on land and housing prices, particularly in the affordable housing sector. He stated, “Industry is glad that the government has made the right decision not to increase the Ready Reckoner rates. Any increase in RR rates has a multiplier effect on land and home prices, causing inflation and unaffordability, especially in the affordable housing sector.”

Keval Valambhia, Chief Operating Officer (COO), CREDAI- MCHI commended the government’s move, highlighting its support for property buyers, home seekers, and the overall real estate sector. He emphasized the decision’s role in promoting stability and stimulating investment, thereby fostering the sector’s growth.

Bhavik Mehata, Partner at Namo Realty company, praised the government’s action for preserving stability and viability in redevelopment projects, as well as benefiting homebuyers by avoiding higher stamp duty payments associated with ready reckoner rates. He remarked, “It is a commendable step taken by the Maharashtra government to maintain the ready reckoner rates at the same level as in 2023. As all MCGM premiums are linked with ready reckoner rates, this decision will make redevelopment projects viable and also benefit homebuyers by reducing stamp duty payments.”

Chintan Vasani, Founder Partner of Wisebiz Developers, welcomed the decision as positive news for homebuyers, enabling them to make informed decisions about purchasing homes without the burden of increased rates. He said, “It’s indeed good news for homebuyers as the Ready Reckoner rates for 2024-25 will remain unchanged, which is a positive outcome for those who were undecided. This decision will assist them in making an informed choice about purchasing their dream home.”