Maharashtra Government Decides Not To Increase Ready Reckoner Rates

The government, however, decided to keep the rates unchanged because of the overall slump in the real estate sector after the demonetization drive and introduction of the Real Estate Regulatory Authority (RERA) and GST.

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Maharashtra Government Decides Not To Increase Ready Reckoner Rates

Home buyers can expect a realistic pricing with the state government deciding to maintain a status quo on the Ready Reckoner (RR) rates this year. Industry experts said the government’s decision not to increase the RR rates would boost the buyers’ sentiment that was lacking for the past one year.

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RR rates are assessments of property value by the state government, on the basis of which stamp duty and registration charges are paid. The government usually revises the rates every year. The government, however, decided to keep the rates unchanged because of the overall slump in the real estate sector after the demonetization drive and introduction of the Real Estate Regulatory Authority (RERA) and GST.

Confederation of Real Estate Developers Associations of India (CREDAI) national president said the government’s decision would help to keep prices stable and ensure an increase in the volume of transactions and boost the realty sector as a whole. This will also help the developers charge lower than the existing prices, especially in the affordable housing sector.

Read Also: Pune Circle Rate Proposed To Be Hiked (RR Rates)

RR rates were already very high in Maharashtra and any further increase would have hit the ailing realty market. With the RR rates remaining unchanged, the developers can go for a realistic pricing.

Realtor analyst from Anarock property consultants said any hike would have had a negative impact on the market, as the previous years saw huge hikes. Keeping the RR rates unchanged will benefit the city’s real estate sector and the end-users. It will also reduce the burden of tax on property transactions.

Read Also: Revision Of Circle Rates In Gurugram After 4 Years, Implemented

The state government had last week decided not to increase the RR rates, giving a respite to the homebuyers and developers alike. This was the second time after 2009 that the government decided to maintain a status quo on the rates. Last year, the RR rates were increased by 5.86% on an average.

Source Link- https://timesofindia.indiatimes.com/.

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