Maharashtra hikes property rates: What 3.9% RR rate increase means for you

The Maharashtra government has raised the Ready Reckoner rates by an average of 3.9% for the year 2025-26. These rates are important for calculating property taxes, stamp duty, and registration charge

The Maharashtra government has increased the "ready reckoner" (RR) rates for the financial year 2025-26, which are used for property valuations related to stamp duty and taxes. This marks the first increase in two years. Mumbai will see a 3.39% hike in these rates, while other areas in the state will experience a larger average increase of 3.89%. Notably, cities like Navi Mumbai, Thane, and Nashik will face steeper hikes, reaching up to 10.17%.

 

 Although the average rise in the state remains 3.89%, it is 5.95% in urban areas governed by municipal corporations. It is just 3.39% in Mumbai, the second lowest after Nanded.

 

 

The highest rise in the RR rates is in Solapur city (10.17%), followed by Ulhasnagar (9%), Amravati city (8.03%) and Thane city (7.72%). 

 

With the revised rates coming into effect from April 1, 2025, property buyers will likely have to pay more, as stamp duty and registration costs are directly linked to RRR.

 

This change could raise property costs, particularly in areas already facing high property prices, as construction and municipal charges are tied to RR rates. Developers, such as Niranjan Hiranandani, have expressed concerns that the rise could escalate costs for homebuyers, especially affecting affordable housing. 

 

"NAREDCO (National Real Estate Development Council) appreciates the state government’s move to revise Mumbai ready reckoner rates marginally. With Mumbai’s real estate market witnessing a surge in redevelopment activities, this upward revision in rates will escalate construction costs, as development expenses, additional FSI, and municipal charges are directly linked to it. Furthermore, ready reckoner revised at an average 5 per cent across the state of Maharashtra will drive up the property cost and indeed hurt the affordable housing segment. NAREDCO urges policymakers to adopt a balanced approach to sustain growth momentum while ensuring housing affordability in the real estate market," said Niranjan Hiranandani, chairman, NAREDCO.

 

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. 

In FY25, Mumbai's stamp duty revenue reached Rs 12,899 crore, marking a 22% year-on-year increase, shows data analysed by property consulting firm Knight Frank India. This was driven by a rise in property registrations, which went up by 9%. Notably, the highest revenue was collected in March 2025, with Rs 1,597 crore from 15,603 properties. The growth was attributed to more high-value transactions, with premium homes (over Rs 2 crore) seeing a significant rise. The Central suburbs saw growth, while the Western suburbs saw a decline in market share. Smaller properties' registrations declined, while demand for larger homes (1,000-2,000 sq ft) grew. Experts expect easing interest rates to further boost market confidence. 

Shishir Baijal, chairman & managing director, Knight Frank India, said, “The robust demand for premium homes reflects sustained buyer confidence and economic stability. The preference for larger apartments signals evolving homebuyer aspirations. The anticipated easing of interest rates in the coming months is likely to further bolster market sentiment.” 

The new RR rates are likely to push up the base value of properties, directly raising stamp duty and registration fees. This translates to increased costs for buyers and added tax revenues for the government.  In FY 2024–25, Maharashtra collected Rs 57,422 crore in property revenue, overshooting its target.

 

'During the preparation of these rates, meetings were organised with developers, property dealers, and stakeholders involved in the valuation process. Based on the instructions and suggestions gathered from these meetings and public participation, the feedback and objections were considered. After thorough verification, the rates have been revised accordingly,' stated the statement released by the IGR department.

 

Key details:

• Municipal corporations saw the highest hike, at 5.9%, with Solapur seeing a significant increase of 10.2%.
• Mumbai's increase was the lowest at 3.4%.
• In Pune district, the RR rates increased by 6.8%, and other regions like Nashik and Kolhapur saw 7.3% and 5% hikes, respectively.
• The last RR rate increase was in 2022-23, at 5%.

 

The proposed rates in various parts of the state include:

• Rural areas - 3.36 per cent
• Urban areas - 3.29 per cent
•  Municipal corporation/municipal councils - 4.97 per cent
• Metropolitan municipalities (excluding Mumbai) - 5.95 per cent
•  State-wide average - 4.39 per cent
•  Greater Mumbai Municipal Corporation average - 3.39 per cent
• Total state-wide average - 3.89 per cent

 

While the increase is moderate, developers are concerned it will affect property sales and construction costs, especially with the additional 1% Metro cess.