Maharashtra Government Raises Ready Reckoner Rates For FY 2025-26

The Maharashtra government has announced an increase in the "ready reckoner" (RR) rates for the financial year 2025-26, which are used to determine property valuations for stamp duty and taxes. This marks the first hike in two years. Mumbai will see a 3.39 per cent increase in RR rates, while other parts of the state will experience a higher average rise of 3.89 per cent. Cities such as Navi Mumbai, Thane, and Nashik will face even steeper increases, with rates climbing up to 10.17 per cent. Despite the overall average increase of 3.89 per cent across the state, urban areas under municipal corporations will witness a more significant rise of 5.95 per cent. Mumbai’s growth rate of 3.39 per cent is the second lowest in the state, following Nanded. Solapur Tops RR Rate Hike List Solapur city will see the highest increase in ready reckoner (RR) rates at 10.17 per cent, followed by Ulhasnagar at 9 per cent, Amravati city at 8.03 per cent, and Thane city at 7.72 per cent. With the revised rates set to take effect from April 1, 2025, property buyers are likely to face higher expenses, as stamp duty and registration fees are directly linked to RR rates. This adjustment could drive up property prices, especially in areas where real estate costs are already high, as construction and municipal charges are also tied to RR rates. Developers, including Niranjan Hiranandani, have raised concerns that the hike could significantly increase costs for homebuyers, with a particularly adverse impact on affordable housing projects. "NAREDCO (National Real Estate Development Council) 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 per cent across the state of Maharashtra will drive up the property cost and indeed hurt the affordable housing segment. NAREDCO urges policymakers to adopt a balanced approach to sustain growth momentum while ensuring housing affordability in the real estate market," said Niranjan Hiranandani, chairman, NAREDCO, according to a Business Standard report. Maharashtra’s RR Rate Hike To Generate Rs 10,000 Crore The recent increase in Maharashtra’s ready reckoner (RR) rates is projected to generate at least Rs 10,000 crore for the cash-strapped state government, contributing to the target of Rs 63,500 crore from stamp duty and registration fees in FY 2025-26, as per a Business Standard report. In FY 2025, Mumbai’s stamp duty revenue surged to Rs 12,899 crore, marking a 22 per cent year-on-year increase, according to data from property consulting firm Knight Frank India. This growth was driven by a 9 per cent rise in property registrations, with March 2025 standing out as the highest revenue-generating month, collecting Rs 1,597 crore from 15,603 properties. The uptick was largely due to an increase in high-value transactions, especially premium homes priced over Rs 2 crore, as per the report. The Central suburbs saw notable growth, while the Western suburbs experienced a decline in market share. Registrations for smaller properties fell, while demand for larger homes (1,000–2,000 sq ft) grew. Experts predict that easing interest rates will further boost market confidence. Shishir Baijal, Chairman & Managing Director of Knight Frank India, stated, “The robust demand for premium homes reflects sustained buyer confidence and economic stability. The preference for larger apartments signals evolving homebuyer aspirations. The anticipated easing of interest rates in the coming months is likely to further bolster market sentiment.” Highlights Of The RR Rate Revision: Municipal Corporations: Highest hike at 5.9 per cent, with Solapur leading at 10.2 per cent. Mumbai: Lowest increase at 3.4 per cent. Pune District: RR rates up by 6.8 per cent. Nashik & Kolhapur: Increases of 7.3 per cent and 5 per cent, respectively. Previous RR Increase: Last revised in 2022–23 with a 5 per cent hike. Also Read: Moody’s Projects India As The Fastest-Growing Economy In G20 Nations Proposed Rates By Region: Rural Areas: 3.36 per cent Urban Areas: 3.29 per cent Municipal Corporations/Municipal Councils: 4.97 per cent Metropolitan Municipalities (excluding Mumbai): 5.95 per cent State-wide Average: 4.39 per cent Greater Mumbai Municipal Corporation Average: 3.39 per cent Total State-wide Average: 3.89 per cent

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Apr 1, 2025 - 15:01

Maharashtra Government Raises Ready Reckoner Rates For FY 2025-26

The Maharashtra government has announced an increase in the "ready reckoner" (RR) rates for the financial year 2025-26, which are used to determine property valuations for stamp duty and taxes. This marks the first hike in two years.

Mumbai will see a 3.39 per cent increase in RR rates, while other parts of the state will experience a higher average rise of 3.89 per cent. Cities such as Navi Mumbai, Thane, and Nashik will face even steeper increases, with rates climbing up to 10.17 per cent.

Despite the overall average increase of 3.89 per cent across the state, urban areas under municipal corporations will witness a more significant rise of 5.95 per cent. Mumbai’s growth rate of 3.39 per cent is the second lowest in the state, following Nanded.

Solapur Tops RR Rate Hike List

Solapur city will see the highest increase in ready reckoner (RR) rates at 10.17 per cent, followed by Ulhasnagar at 9 per cent, Amravati city at 8.03 per cent, and Thane city at 7.72 per cent.

With the revised rates set to take effect from April 1, 2025, property buyers are likely to face higher expenses, as stamp duty and registration fees are directly linked to RR rates.

This adjustment could drive up property prices, especially in areas where real estate costs are already high, as construction and municipal charges are also tied to RR rates. Developers, including Niranjan Hiranandani, have raised concerns that the hike could significantly increase costs for homebuyers, with a particularly adverse impact on affordable housing projects.

"NAREDCO (National Real Estate Development Council) 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 per cent across the state of Maharashtra will drive up the property cost and indeed hurt the affordable housing segment. NAREDCO urges policymakers to adopt a balanced approach to sustain growth momentum while ensuring housing affordability in the real estate market," said Niranjan Hiranandani, chairman, NAREDCO, according to a Business Standard report.

Maharashtra’s RR Rate Hike To Generate Rs 10,000 Crore

The recent increase in Maharashtra’s ready reckoner (RR) rates is projected to generate at least Rs 10,000 crore for the cash-strapped state government, contributing to the target of Rs 63,500 crore from stamp duty and registration fees in FY 2025-26, as per a Business Standard report.

In FY 2025, Mumbai’s stamp duty revenue surged to Rs 12,899 crore, marking a 22 per cent year-on-year increase, according to data from property consulting firm Knight Frank India. This growth was driven by a 9 per cent rise in property registrations, with March 2025 standing out as the highest revenue-generating month, collecting Rs 1,597 crore from 15,603 properties. The uptick was largely due to an increase in high-value transactions, especially premium homes priced over Rs 2 crore, as per the report.

The Central suburbs saw notable growth, while the Western suburbs experienced a decline in market share. Registrations for smaller properties fell, while demand for larger homes (1,000–2,000 sq ft) grew. Experts predict that easing interest rates will further boost market confidence.

Shishir Baijal, Chairman & Managing Director of Knight Frank India, stated, “The robust demand for premium homes reflects sustained buyer confidence and economic stability. The preference for larger apartments signals evolving homebuyer aspirations. The anticipated easing of interest rates in the coming months is likely to further bolster market sentiment.”

Highlights Of The RR Rate Revision:

Municipal Corporations: Highest hike at 5.9 per cent, with Solapur leading at 10.2 per cent.
Mumbai: Lowest increase at 3.4 per cent.
Pune District: RR rates up by 6.8 per cent.
Nashik & Kolhapur: Increases of 7.3 per cent and 5 per cent, respectively.
Previous RR Increase: Last revised in 2022–23 with a 5 per cent hike.

Also Read: Moody’s Projects India As The Fastest-Growing Economy In G20 Nations