Maharashtra revises ready reckoner (RR) rates: How will it impact flat prices in Mumbai, other cities

After a two years gap, the Maharashtra government on Monday announced a rise in the ready reckoner (RR) rates by an average of 4.39 per cent across the state for FY 2025-26. Although the average rise in the state remains 3.89 per cent, it is 5.95 per cent in urban areas governed by municipal corporations.
RR rates are used for property valuations related to stamp duty and taxes.

The lowest RR rate is 3.29 per cent in Nanded, followed by Mumbai (3.39 per cent). The highest rise in the RR rates is in Solapur city (10.17 per cent), followed by Ulhasnagar (9 per cent), Amravati city (8.03 per cent) and Thane city (7.72 per cent).

The statement issued by the government says, “While revising the rates, the data on the actual registered transactions is collected village-wise and value zone-wise, and the rates are finalised considering increases or decreases in the rate of registrations. We consider suggestions/objections from elected representatives, and new construction rates are obtained from the public works department before finalising the rates.”

The rise in the RR rates is expected to earn the cash-strapped Maharashtra government a minimum of Rs 10,000 crore against the target of Rs 63,500 crore from stamp duty and registration in FY 2025-26.

The government has increased the RR rates separately for rural areas, urban areas, influence areas and Nagar panchayat areas, while Mumbai has been treated as a separate zone.

The highest hike (5.95 per cent) is in the municipal corporation areas, although the RR rate for Mumbai is just 3.39 per cent. The lowest RR rate is 3.29 per cent for influence areas.

The revision in the RR rates is based on the rates at which properties were sold in the previous year. RR rates are the government’s estimate of what property prices should be although the actual market rates are far higher. These rates form the basis for charging stamp duty for registration of real estate transactions.

The rise in Mumbai is low, as the RR and market rates are almost at par. “Land deals are rare in Mumbai because of land paucity; the market is dominated by flat sales. Most builders in Mumbai do not indulge in cash deals, leading to the RR rates being on par with market rates,” Hindustan Times quoted a revenue department official as saying.

The official added that the Solapur hike was the highest because of rapid development in the city after the government’s launch of new highways. Navi Mumbai and Thane have seen high rates of transactions over the last few years leading to a sizable rise in the rates.

The rise in the RR rates will lead to a hike in flat prices. The stamp duty in the state ranges between 5 per cent and 7 per cent, and the rise in the rates will attract stamp duty accordingly.