Ready Reckoner Rates For 2024-25 and Its Impact on Mumbai’s Real Estate

Ready Reckoner Rates (RRR) are essential for dealing with properties. For the state government, these rates aid in carrying out income tax capital gains calculations and state duty payments. Based on these rates, other important parameters like municipal corporation premiums and floor space index (FSI) rates are revised at the beginning of each financial year.

For the financial year 2024-25, the Maharashtra government decided not to change any ready reckoner rates. This is the second consecutive financial year that the Ready Reckoner Rates have remained unchanged in the state.

Real estate sector advisory organisations, like CREDAI, have appreciated the decision. According to CREDAI, no changes in RRR will enable homebuyers to predict property prices more precisely. At the same time, homebuyers can avoid sudden price spikes, reducing financial uncertainty.

In this article, we’ll talk about ready reckoner rates in Maharashtra and their impact on Mumbai’s real estate market.

Ready Reckoner Rates: An Overview

Ready Reckoner Rates, also known as Circle Rates or Guidance Values, are the minimum rates the government sets for the valuation of properties in a particular area. These rates are a reference point for property transactions, including stamp duty and registration charges. The government revises these rates annually to reflect the prevailing market conditions and ensure fair transactions.

People in Maharashtra must register their properties based on RRR, irrespective of their market value. The stamp duty and registration charges for these properties are calculated based on the ready reckoner rates. 

In 2022, the RRR was increased by an average of 8.80% in Maharashtra. Following are some benefits of ready reckoner rates in Maharashtra:

• Property Valuation

As discussed earlier, Ready Reckoner Rates enables homebuyers to evaluate a property’s current market price. The Maharashtra government fixes these rates, considering various factors like location, size, amenities, etc.

• Revenue Generation

Ready Reckoner rates in Maharashtra enable the government to generate revenue in the form of stamp duty and other registration charges. As rates are fixed throughout the financial year, it benefits the government to promote transparency and build trust among homebuyers.

• Registration Prices

The Ready Reckoner rate list in Maharashtra comes with fixed prices for property registration. Homebuyers should pay RRR to register the properties in their names before the purchase. This list also helps calculate stamp duty and registration charges. 

Ready Reckoner Rates in Maharashtra For 2024-25

The Ready Reckoner Rate, also known as the Circle Rate or Guidance Value in other regions, is the minimum value set by the government for properties in a particular area. In Maharashtra, it’s used to calculate stamp duty and registration charges for property transactions. Here’s how it helps homebuyers:

• Stamp Duty Calculation: The Ready Reckoner Rate serves as a reference point for calculating stamp duty. Stamp duty is levied on the higher of the actual transaction value or the Ready Reckoner Rate. If the transaction value is lower than the Ready Reckoner Rate, stamp duty is charged on the Ready Reckoner Rate.

• Avoiding Under-Reporting: The Ready Reckoner Rate prevents under-reporting or undervaluing of properties during transactions. This ensures that the government receives fair revenue from property transactions and discourages tax evasion.

• Transparency: By providing a standardized rate, the Ready Reckoner Rate promotes transparency in property transactions. Buyers and sellers can refer to this rate to understand the approximate value of properties in different areas, facilitating informed decisions.

• Fair Pricing: It helps in ensuring that properties are bought and sold at fair market prices. Since the Ready Reckoner Rate reflects the prevailing property prices in an area, it prevents overpricing or underpricing, benefiting both buyers and sellers.

• Legal Compliance: Adhering to the Ready Reckoner Rate is necessary for legal compliance during property transactions. Buyers can be confident that the transaction is legally sound and that they are not at risk of facing penalties or legal issues in the future.

However, Romell Group recommends you check the ready reckoner rates in Maharashtra before buying any properties there. Knowing the RRR will help you get a fair idea of the property prices.

To Conclude:

In summary, ready reckoner rates in Maharashtra are the minimum for immovable properties that the government decides on. The RRR of any city can be checked on the official website of the Department of Registrations and Stamps. However, different areas may attract different rates depending on the property’s location, amenities, and market value.

Romell Group stands proud to provide you with the latest information and trends about the real estate market in Mumbai. If you still have any doubts about RRR, please get in touch with us.