Maharashtra ready reckoner rates: Here’s what the average 3.9% increase means for homebuyers

Solapur will experience the sharpest increase at 10.17%, followed by Ulhasnagar at 9%, Nashik at 7.31%, Thane at 7.72%, Pune district at 6.8%, Navi Mumbai 6.75%. Mumbai, the state’s commercial capital, will see a 3.4% increase, slightly below the state average, according to the document.

Experts believe that the rise in ready reckoner rates could make homeownership and real estate investment more expensive, further impacting a market that is already grappling with slow sales.

The statement issued by the government says, “While revising the rates, the data on the actual registered transactions is collected village-wise and value zone-wise, and the rates are finalised taking into account increases or decreases in the rate of registrations. We consider suggestions/objections from elected representatives, and new construction rates are obtained from the public works department before finalising the rates.”

The government has increased the RR rates separately for rural areas, urban areas, influence areas and nagar panchayat areas, while Mumbai has been treated as a separate zone. The highest hike—5.95%—is in the municipal corporation areas, although the RR rate for Mumbai is just 3.39%. The lowest RR rate is 3.29% for influence areas.

The rise in Mumbai is low, as the RR and market rates are almost at par, claimed a revenue department official. “Land deals are rare in Mumbai because of land paucity; the market is dominated by flat sales,” he said. “Most builders in Mumbai do not indulge in cash deals, leading to the RR rates being on par with market rates,” the Hindustan Times quoted the official as saying.

The rise in the RR rates is expected to earn the cash-strapped Maharashtra government a minimum of ₹10,000 crore against the target of ₹63,500 crore from stamp duty and registration in FY 2025-26

The official quoted by Hindustan Times said that the Solapur hike was the highest because of rapid development in the city after the government’s launch of new highways. Navi Mumbai and Thane have seen high rates of transactions over the last few years leading to a sizable rise in the rates.

The rise in Mumbai is low, as the RR and market rates are almost at par, claimed a revenue department official. “Land deals are rare in Mumbai because of land paucity; the market is dominated by flat sales,” he said. “Most builders in Mumbai do not indulge in cash deals, leading to the RR rates being on par with market rates.”

The official told HT that the Solapur hike was the highest because of rapid development in the city after the government’s launch of new highways. Navi Mumbai and Thane have seen high rates of transactions over the last few years leading to a sizable rise in the rates.

What are ready reckoner rates?

Ready reckoner rates (RR rates) are the minimum rate based on which the government can charge registration fees and stamp duty on a property transaction. They are also used to calculate capital gains for income tax. RR rates are linked to all premiums, charges, and floor space index (FSI) rates payable to municipal corporations by real estate developers. The rates are released at the beginning of the financial year in Maharashtra.

The RR rate, also known as the ‘circle rate’ or ‘guidance value’ in several parts of the country, is the minimum per sq ft rate of a property or land fixed by the state government. The RR rate is deemed to be the minimal market rate. But if one sells his or her house or land at a lower than the RR rate, then the buyer’s stamp duty and other charges get linked to the RR rate. If it is sold for a higher rate than RR rates, the stamp duty is linked to the higher rate, also known as the market rate.

Regarding land, the RR rates determine the project cost for developers. Developers pay premiums and other taxes based on RR rates to get development approvals.

The government aims to generate ₹63,500 crore from stamp duty and registration fees in FY26. Stamp duty in Maharashtra ranges from 5% to 7%.

The last time the Maharashtra government increased RR rates was in 2022-23. In that year, all municipal corporations, except Mumbai, saw a rise of 8.8% in RR rates, effective from April 1, 2022. Prior to that, RR rates were increased by 1.74% in 2020-2021.

Impact on affordable housing segment

Real estate experts said that an increase in RRR could push up property prices, making homeownership and real estate investment more expensive.

Niranjan Hiranandani, chairman, NAREDCO said that “NAREDCO 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 5-7% across the state of Maharashtra will drive up the property cost and indeed hurt affordable housing segment. NAREDCO urges policymakers to adopt a balanced approach to sustain growth momentum while ensuring housing affordability in the real estate market,” he added.

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“The revision in Ready Reckoner (RR) rates is not unprecedented; the last hike was in 2022, and the market absorbed it well. Given Mumbai’s rapid price appreciation in recent years, this adjustment is unlikely to disrupt momentum. While there may be a short-term impact, historically, such revisions have been smoothly integrated into the market. Mumbai’s real estate sector continues to demonstrate resilience, driven by strong demand and long-term growth prospects,” said Ritesh Mehta, senior director and head-North, West and East, Residential Services, JLL India.