Maharashtra’s Ready Reckoner Rate Hike: Builders Call for a Balanced Approach to Sustain Growth

Mumbai : The Maharashtra government’s decision to increase Ready Reckoner Rates (RRR) for 2025-26 has sparked concern among real estate developers, who emphasize the need for a more measured approach to prevent disruption in the housing market. The revised rates, which directly impact property valuations and stamp duty calculations, will take effect from April 1, 2025, with an average statewide hike of 3.89%.

Developers acknowledge the government’s intent to align RRR with market conditions but caution that the timing and scale of the increase could deter homebuyers and add financial strain to an industry already facing rising input costs.

Affecting Property Prices Across Key Cities

While Mumbai will see a 3.4% hike—slightly below the state average—several other major cities have witnessed more substantial increases. Thane leads with a 7.72% rise, followed by Solapur at 10.17%, Ulhasnagar at 9%, Navi Mumbai at 6.75%, Nashik at 7.31%, Pune at 4.16%, and Panvel at 4.97%.

Municipal corporation areas outside Mumbai have experienced an average hike of 5.95%, while rural regions have seen a 3.7% increase. These revisions are expected to have a direct impact on property pricing, making homeownership more expensive for buyers.

Developers Express Concerns Over Market Impact

Industry leaders believe the increase in RRR could slow down momentum in the real estate sector, particularly in the affordable housing segment.

Prashant Sharma, President, NAREDCO Maharashtra, highlighted the challenges developers and buyers may face:
“The increase in Ready Reckoner rates across Maharashtra is a significant development that will directly impact property valuations and, subsequently, the overall cost of acquisition for homebuyers. While we understand the government’s intent to align RR rates with market realities, this hike comes at a time when the sector is moving steadily, and affordability plays a key role in driving demand. This increase may deter fence-sitting buyers and put pressure on developers already grappling with high input costs. We urge the authorities to adopt a more calibrated approach to such revisions to ensure sustainable growth of the real estate sector.”

Shraddha Kedia-Agarwal, Director, Transcon Developers, emphasized the cascading effect of higher RR rates on consumer costs:
“The increase in Ready Reckoner rates will have a cascading effect on overall property pricing, especially in prime urban markets like Mumbai where the base property prices are already high. It impacts stamp duty and registration charges, thereby increasing the burden on end consumers. While real estate has seen encouraging momentum over the last few quarters, such policy moves should ideally be introduced gradually to maintain market sentiment and buyer confidence. We hope the government considers sectoral feedback while rolling out future revisions.”

Samyak Jain, Director, Siddha Group, pointed out the potential impact on demand and affordability:
“The recent adjustment in RR rates could influence the demand trajectory observed in recent months, particularly for first-time homebuyers and the affordable housing segment, where even slight cost variations can be impactful. Developers may also need to navigate pricing and planning considerations, especially for ongoing projects. While we appreciate measures that enhance transparency and fair valuation, a phased revision approach could help sustain real estate momentum and ensure a smoother transition.”

A Call for a Balanced Approach

While developers recognize the importance of periodic RRR revisions to reflect market dynamics, they urge the government to consider a phased and well-calibrated approach. A sudden increase, they argue, could disrupt demand, slow project sales, and put additional financial pressure on both developers and homebuyers.

As Maharashtra’s real estate sector continues to play a crucial role in economic growth, industry leaders hope that future revisions will be introduced with a broader industry perspective in mind, ensuring long-term stability and sustained buyer confidence.