Maharashtra Government Considers 10% Hike in Ready Reckoner Rates from April

Pune, 30th January 2025: The Maharashtra government is considering a 10% increase in Ready Reckoner (RR) rates, which could take effect from April 1, 2025, marking the start of the new financial year. The decision is based on recommendations from district administrations following consultations with stakeholders, according to senior revenue officials who met with State Revenue Minister Chandrakant Bawankule on Monday.

Ready Reckoner rates determine the minimum property valuation for stamp duty and registration charges, directly influencing property costs. If implemented, this hike could make property transactions more expensive, affecting both buyers and developers.

The real estate sector has opposed the move, warning that increased property prices may slow down market growth.

Developers argue that while RR rates were last revised in 2022, a further hike could put additional pressure on the housing market. One developer noted that revenue collections from property transactions have already crossed 75% of the government’s target, suggesting that an RR rate hike may not be necessary.

The Maharashtra government is looking to boost revenue collection, with stamp duty and registration fees ranking as the third-highest sources of income after GST and sales tax. Officials estimate that stamp duty collections will reach ₹55,000 crore this year, with an additional ₹15,000 crore to ₹20,000 crore expected from the RR rate hike.

A senior revenue official stated, “The RR rates have not been revised in the past three years due to various reasons, including last year’s elections. However, given the financial burden of government schemes like Ladki Bahin, an increase is now necessary.”

While the state anticipates higher revenue from the hike, real estate experts caution that an initial slowdown in property registrations could follow. A registration official mentioned that while transactions may decline in the short term, the market is expected to stabilize in a few months.

However, real estate agents fear that increased RR rates could lead to higher property prices and a buildup of unsold inventory. “The real estate sector is a major employment generator. Instead of raising RR rates, the government should explore alternative revenue sources to avoid disrupting the housing market,” said an industry expert.

A proposed GIS-based mapping system for a more accurate Ready Reckoner valuation is still incomplete. While the system has been developed for rural areas, it is not yet ready for urban land parcels. Officials confirmed that its full implementation could take another financial year.

Currently, RR rates are determined based on factors such as market trends, transaction data, media reports, and real estate exhibitions. A senior official from the stamps and registration department acknowledged that the existing method provides only approximate figures, while GIS-based mapping would enable a more precise valuation in the future.

The final decision on the RR rate revision is expected in the coming weeks, with property buyers and developers closely watching its potential impact on the real estate sector.