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Maharashtra's hike in ready reckoner rates to hit affordable-housing projects

Homebuyers in these locations may have to pay higher taxes, which would impact sales of houses, experts have said

Representative Image of Mumbai, India - Unsplash

Representative Image of Mumbai, India - Unsplash

The Maharashtra government's hike in the ready reckoner (RR) rates, or circle rates as they are known, by an average 8.8 percent will hit mid and affordable housing projects, forcing homebuyers to pay more, which would hit sales, experts have said.

Though the rates have been increased after four years, the hike, which kicks in from April 1, comes when the stamp duty waiver has ended and the state has proposed a 1 percent Metro cess.

“The impact of RR rates is expected to be higher in the case of the mid and affordable segments as the rate hikes have been higher for suburban municipal areas,” said Samantak Das, Chief Economist, and Head Research and REIS, India, JLL.

“In fact, these areas constitute a lion’s share of residential sales and launches in the Mumbai metropolitan region. Homebuyers in these regions would have to pay higher taxes and is going to impact residential sales,” he said.