Home-buyers and developers in the city need to brace themselves with the state stamps and registration department announcing Ready Reckoner (RR) rates for 2016-17, applicable from April 1, 2016 to March 31, 2017. According to the proposal, the city will witness a seven per cent increase in new RR rates, followed by six per cent for Thane region, and four per cent for Navi Mumbai region.
Every year, the state government announces new RR rates and the same are implemented from January 1. However, in lieu of the slowdown in real estate, the state government had announced postponing the increase by three months. The move was also criticised saying that the builder lobby had pushed the state government to postpone the increase. “The increase in RR rates has been kept moderate, considering the drought situation in the state for the past two years, the slowdown in the real estate market and also, complaints from legislators that in many places, land value was lesser than the prevalent RR rates,” said Revenue Minister Eknath Khadse in the assembly.
Mr Khadse further said that looking at the recession in real estate, the state had decided not to increase RR rates by more than 10 per cent in any area of the state. Also, RR rates will now be increased, considering the dates of the new financial year starting from April and ending in the month of March next year.
Housing expert, Vinod Sampat, said, “It will definitely affect home-buyers in the state considering the increase in RR rate. However, instead of increasing the RR rates area-wise, this time, the state government has opted to go the lump-sum way which is both good and bad.”
RR rates are fixed by reviewing sale transactions in different areas of the city or town. Property rates are based on RR rates decided by the revenue department. They are usually increased, except in a few cases. The increase in RR rates also affects construction cost as various premiums and revenue collected by various civic bodies are based on RR rates.
