2 weeks Ago By Moneycontrol
The property prices in Maharashtra are expected to become more expensive as the government has increased the ready reckoner rates (RRR) by an average of 3.89% for the financial year 2025-26. Since stamp duty and registration fees are directly related to RRR, property owners will probably pay more when the updated rates take effect on April 1, 2025.
Due to RR rates being linked to construction and municipal charges, this shift may result in higher property costs, especially in locations where real estate prices are already high. What are ready reckoner rates? Ready reckoner rates (RRR) are also called circle rates in some states. These are the minimum property prices set by the government for different places, which are used to calculate stamp duty and registration charges when buying or selling a property.
If a property is sold at a lower price than the RRR, the stamp duty is still calculated on the price set by the government. In case a property is sold at a higher price than the RRR, the stamp duty is calculated on the actual sale price. For example, the RRR in an area is Rs 10,000 per square ft and you need to buy a 1,000 square ft flat in that area.
There are two ways, the seller can sell the flat at either less price such as Rs 9,000 per sq ft or at higher price such as Rs 12,000 per sq ft. If the property is sold at Rs 12,000 per sq ft, the stamp duty will be calculated on the deal price which is Rs 1.2 crore, because it's higher than RRR which is Rs 1 crore.
If the deal price is Rs 9,000 per sq ft, which makes it to Rs 90 lakh in total, the stamp duty will be calculated on the RRR which is Rs 1 crore, because that's the minimum value set by the government. If you are planning to avail funds for buying property or any other purpose, you can access multiple personal loan offers on digital lending platforms like Moneycontrol. As many as eight lenders are offering personal loans up to Rs 50 lakhs through the Moneycontrol app.
The application process is easy to follow: enter your details, complete the KYC verification, and choose an EMI plan. Interest rates start at as low as 10.5% per annum.
Get Instant Loan Up To Rs.50L How does RRR impact you? When buying a home in Mumbai, purchasers currently have to pay 1% registration fees, 5% stamp duty, and 1% metro premium. Purchasing a home in the city will become even more expensive as a result of the increase in RRR.
According to industry experts, developers and builders can raise property prices by passing these extra expenses on to buyers. Mumbai's market will be impacted in two ways. First, the premium that builders pay for approval of the floor space index will go up by about 0.
5%. Secondly, the cost of stamp duty registration will increase for homebuyers, which means you'll be paying more taxes when purchasing property. Maharashtra's municipal corporations witnessed the highest increase in the Ready Reckoner Rate (RRR), rising 5.
9%, while Solapur saw the biggest increase at 10.2 %. Pune district experienced an increase of 6.
8 %, while Mumbai saw the lowest increase of 3.4 %. Other regions, such as Nashik and Kolhapur, saw 7.
3% and 5% hike, respectively. The RRR was last hiked by 5% in FY 2022–2023. It is expected that the increase in RR rates will generate at least Rs 10,000 crore for the cash crunch Maharashtra government, in contrast to the Rs 63,500 crore that stamp duty and registration are estimated to generate in FY 2025–2026.
Moneycontrol has teamed up with seven lenders to offer fast, fully digital loans up to Rs 50 lakhs . The application process is easy to follow: enter your details, complete the KYC verification, and choose an EMI plan. Interest rates can start as low as 10.
5% per year, depending on your employment status. Conclusion Purchasing a house may become more costly due to the recent increase in Maharashtra's Ready Reckoner Rates (RRR). Buyers will pay more taxes when registering properties because stamp duty and registration fees are linked to RRR.
Property prices may rise higher as developers and builders pass on the additional expenses to customers. Rates are higher in areas with limited supply and high demand since there is more competition among buyers. Premium real estate in high-demand areas has a higher RRR.
In the same vein, premium locations and first-rate infrastructure drive up prices in upscale neighborhoods. Since they have a larger market worth and more potential to generate income, commercial properties typically command higher rates than residential ones..
