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  Metros   Mumbai  01 Apr 2017  Property rates may see hike

Property rates may see hike

Published : Apr 1, 2017, 1:24 am IST
Updated : Apr 1, 2017, 7:09 am IST

Ready reckoner rates likely to see increase by 5 to 10 per cent today.

Image for representational purposes only.
 Image for representational purposes only.

Mumbai: The ready reckoner (RR) rates in Maharashtra are likely to increase by five to 10 per cent from April 1. With the slowdown in the realty sector, the representatives have requested the government not to hike the rates too much. However, with little rise in the RR rates also, the consumers will have to pay more while buying houses.

The government declares RR rates every year on January 1. However, the BJP- led government on the request from the real estate sector changed the date to April 1, the beginning of the financial year.

Sources from the revenue department said that the RR rates would increase by five to 10 per cent this year. “There was a slowdown in the market post demonetisation. The government also lost its revenue from the stamp duty registration. Therefore it was requested to the government by the representatives of the real estate sector on not increasing the RR rates too high," an official from the department said.

The RR rate was increased by seven per cent last year. The RR rates are based on the average market value of a property in a particular area. The stamp duty and registration is based on the RR rates, which is one of the major sources of the revenue collection for the state government.

Chief minister Devendra Fadnavis on Thursday had held a meeting to discuss the rates and the demand from the real estate sector. The government had increased RR rates by an average of 15 per cent in 2015, 22 per cent in 2014, 27 per cent in 2013, 18 per cent in 2012, 17 per cent in 2011 and 14 per cent in 2010.

Tags: devendra fadnavis, demonetisation, real estate sector
Location: India, Maharashtra, Mumbai (Bombay)