Maharashtra raises reckoner rates, property prices to go up

State government has increased rates by upto 18.5% from today

If you are planning to buy a house in Mumbai, be ready to spend more. The Maharashtra government increased ready reckoner rates by up to 18.5 per cent from Thursday.

The ready reckoner (RR) is an annual guide published by the state government, which determines the rate of properties in a particular area, on which stamp duty and registration charges are calculated.

The ready reckoner rates for Mumbai city went up 10.5 per cent for both residential and office property transactions. For Andheri taluka, the rates went up 18.57 per cent and 16 per cent for residential and office properties, respectively. For Kurla taluka, they went up 15.89 per cent and 15.91 for residential and office transactions. For Borivali, the rates went up 12.47 and 12.51 per cent for residential and office transactions, respectively.

This increase would mean the hike in stamp duty and registration rates, which a homebuyer has to pay while buying or leasing properties. In addition, all calculations related to property transactions – stamp duty, registration, premiums and tax collections — are based on ready reckoner rates.

“It will increase the burden of homebuyers. They will have to bear the additional cost of levies, which developers pass on to them,” said Deepak Goradia, managing director at Dosti Realty.