With the New Year comes disappointing news for homebuyers: the state has hiked its ready reckoner (RR) rates in the range of 5% to 40% across Mumbai. The RR rates form the basis for the calculation of stamp duty and registration of properties, so a hike directly affects the buyer. The new rates come into effect on January 1.
At Cuffe Parade, for instance, the RR rate for residential properties is up by 9.10%, from Rs44,675 per sq ft in 2012 to Rs49,148. In Mandapeshwar in Dahisar, the hike is 13.04 %, from Rs. 6,787 per sq ft to Rs7,805.
Builders are upset as after the amendment of Development Control Regulations, they have to pay a premium for more buildable space, which is based on RR rates. The Maharashtra Chambers of Housing Industry said now there is no possibility of reducing property prices. “The project cost will increase as the RR is the basis for various payments,” said Paras Gundecha, president of MCHI.
Housing activist Vinod Sampat said: “The buyer ultimately suffers as builders will pass on the burden.”
Officials defended the hike saying it was done after a comprehensive study. Stamp duty is the state’s second largest revenue generator and nets an average of Rs15,000 crore annually.