The Maharashtra government has increased ready reckoner (RR) rates for the financial year 2025-26, marking the first hike in two years. Mumbai will see a 3.39% increase, while the statewide average rise is 3.89%. Other cities, including Navi Mumbai, Thane, and Nashik, will experience steeper hikes, with Solapur city witnessing the highest increase of 10.17%. Urban areas governed by municipal corporations will see a 5.95% rise, while Mumbai’s increase remains the second lowest after Nanded.
With the new rates effective from April 1, 2025, property buyers will likely pay more in stamp duty and registration fees, directly impacting property costs. Developers warn that the hike could increase construction expenses, affecting home affordability. Industry experts, including Niranjan Hiranandani, have urged policymakers to take a balanced approach to maintain growth while ensuring affordability. The National Real Estate Development Council (NAREDCO) has also raised concerns that the hike will drive up property prices and impact the affordable housing segment.
The Maharashtra government expects to generate at least ₹10,000 crore from the hike, contributing to its ₹63,500 crore target from stamp duty and registration fees for FY 2025-26. Mumbai’s stamp duty revenue hit ₹12,899 crore in FY25, marking a 22% year-on-year increase. The demand for premium homes (₹2 crore+) continues to grow, with high-value transactions driving market growth. Smaller property registrations have declined, while demand for larger homes (1,000-2,000 sq ft) has increased.
Market experts believe that easing interest rates could further boost real estate confidence. However, developers remain concerned about the impact of the RR rate hike on property sales, especially when combined with the additional 1% Metro cess, which could further raise costs for homebuyers.
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