Reckoner rates likely to climb by 10 per cent

Mumbai: While it was expected that the real estate prices would decline post demonetisation, the sources in the revenue department said that ready reckoner are likely to go up by 10 per cent this year. The government has a target from the revenue department and hence the rates cannot decrease, stated the expert.

The source from the revenue department states that, “The rates will not increase much but will go up by 10 per cent. It will be declared on the first day of the new year as decided by the government.” Property rates are based on ready reckoner rates decided by the revenue department at the beginning of every year. The rates are usually increased depending upon the purchase and sale of properties in particular areas.

The government, who had announced earlier that the ready reckoner rates would be changed in March as per the financial year, suddenly changed its decision of announcing it on first January. Former revenue minister Eknath Khadse had said that the rates would be declared in March, as there was a demand from the real estate sector. The sources in the revenue department said that the government has a pressure to meet the revenue targets this year due to which it has decided not to change the date of announcements.

“The decision of the rates are done three months ago and hence demonetisation wouldn’t have impacted on the ready reckoner rates. But the property rates will come down. The government needs to complete its revenue targets by increasing the rates,” real estate expert Vinod Sampat said.