Real estate developers wary of proposed RR hike in Pune - Hindustan Times
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Real estate developers wary of proposed RR hike in Pune

ByNadeem Inamdar
Mar 26, 2023 10:28 PM IST

That the proposal drafted by the inspector-general of Registration and Stamps office (IGR) has been sent to the revenue department and is awaiting ministerial approval

PUNE: Prominent real estate developers are now wary of reports that the state government will likely increase the ready reckoner (RR) rate which in turn will raise housing prices in the city from April 2023. The RR rate is a price set by the government for property transactions, which is reviewed annually.

As per the available information, property sales between January and November have been taken into consideration before finalisation of the new RR rate. (HT PHOTO)
As per the available information, property sales between January and November have been taken into consideration before finalisation of the new RR rate. (HT PHOTO)

That the proposal drafted by the inspector-general of Registration and Stamps office (IGR) has been sent to the revenue department and is awaiting ministerial approval.

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As per the available information, property sales between January and November have been taken into consideration before finalisation of the new RR rate. There was no increase in RR rate between 2018 and 2020; a 1.25% hike was proposed in 2020-21; a five per cent hike in 2021-22; and a 9.2% hike in 2022-23. Among the other factors impacting the RR rate are Pune’s growing economy and infrastructure development which have made it an attractive destination for real estate investments. “Consequently, there has been a surge in demand for housing and a possible increase in the RR rate could only exacerbate the situation and housing sector prices will go through the roof making affordable housing a challenging task for buyers,” said prominent builder Naresh Agarwal.

Real estate developer Sachin Gaikwad said, “The Covid-19 pandemic has also caused delays in the development of new housing projects, leading to a shortage of available housing units. This shortage has resulted in an increase in the cost of existing properties, further compounding the problem. If the RR rate increases, it will have a significant impact on the real estate market in Pune. Homebuyers and investors should prepare themselves for potential price hikes in the near future and it will drive up property costs.”

Builder Aslam Shaikh said, “The residents may have to bear the brunt of rising housing prices due to the possibility of an increase in the RR rate. The situation is still developing, and stakeholders are advised to keep a close eye on any updates. We always believe that price control must take place by not hiking the RR rate.”

When contacted, IGR Shravan Hardikar said, “The work is in progress. We will announce whatever the decision taken in the evening on March 31. It will come into effect from April 1.”

With big projects coming up in the rural areas in the next few years like the airport, Ring Road, metro, railway line, MIDC, widening of highways and township scheme at Purandar, the price of land in rural areas has increased and a possible hike in the RR rate is likely to further escalate prices.

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