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The state government has decided to keep land-ready reckoner (RR) rates unchanged for 2024-25. This marks the fourth year that RR rates have remained stable, providing much-needed predictability and affordability for property purchases.
The decision comes at a crucial time when the real estate sector is witnessing a gradual recovery. Industry experts, like Hitesh Thakkar, vice president of NAREDCO West Maharashtra, has welcomed the move, highlighting that increasing RR rates would have burdened homebuyers with additional costs, potentially pushing property prices beyond the reach of many.
This policy of maintaining stable RR rates seems to be paying off. While revenue from property registrations dipped slightly compared to last year, the number of properties registered in Mumbai city (under BMC jurisdiction) saw a significant rise. In March 2024 alone, over 14,411 properties were registered, contributing a substantial INR 1,143 crore to the state government.
Anand Gupta, vice president of the Builders Association of India, believes this trend will continue. He expects the stable RR rates to further encourage property sales and maintain the current positive momentum in the market, potentially leading to an increase in the total number of properties registered and revenue collected throughout the year.
Jitendra Mehta, President of CREDAI MCHI Thane, highlighted the positive impact of the ready reckoner rate update announced on 31 March on Thane's real estate sector. He stated that the update would help maintain a positive sentiment in Thane's real estate market.
According to him,"The home buyer will get a positive outlook as a result of the ready reckoner rate update, since it keeps the cost of buying a home in the new fiscal year at the same level as in the previous one, which will be positive for Thane's real estate."
Thane's real estate has been on a positive track in the past few years, and given the wide array of budgets and segments that homes are offered, it has definitely been on the wish list of home seekers, said the CREDAI MCHI Thane President. Home buyers have been buying not just ready to move in, but also under construction properties in Thane, he said.
Domnic Romell, president of CREDAI-MCHI, emphasised the benefits of stable RR rates for homebuyers. Predictable pricing allows individuals to confidently plan their investments and reduces financial uncertainty. This, in turn, can lead to increased buyer activity and a healthy real estate market.
The Maharashtra government's decision to maintain stable RR rates is a positive step for both homebuyers and the real estate sector as a whole. By ensuring affordability and predictability, this policy is expected to encourage homeownership and contribute to sustained growth in the state's property market, potentially exceeding the revenue collection of INR 50,000 crore achieved in the previous year (2023-24).
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