Ready Reckoner Rates Increase by 5-10% in Pune
The Maharashtra government increased the ready reckoner (RR) rates by 10-15 per cent in the entire state in December last year. As a result, the RR rates in Pune and Pimpri Chinchwad have gone up by about 5-10 per cent.
Increased RR rates in Pune
The RR rates were announced on the basis of different parameters such as property prices in respective areas, rates at which documents were registered during the previous year and prices quoted for properties. The rates are specified in four major categories viz., municipal corporations, municipal councils, influential areas and talukas.
Pune is divided into about 1,280 zones located in municipal corporation areas. Out of these, 1,277 zones have seen up to 20% hike and the remaining three zones have witnessed more than 20% increase in the RR rates. Out of the 1,309 zones in the municipal councils, about 1,255 zones have registered an increase of up to 20%, whereas 54 zones have registered a growth of more than 20%.
There are about 733 influential areas in the Pune division. Out of these, 602 areas registered an increase of up to 20%. The remaining 131 areas registered more than 20% increase. In the rural areas, out of the 57 talukas, 14 have witnessed an increase of more than 20% while 43 talukas have seen up to 20% increase.
Ready reckoner rates
Ready reckoner is the basis on which market value of flats for charges such as stamp duty and registration are calculated. The stamp duty and registration charges are big revenue sources for the government after the value-added tax (VAT) and sales tax. RR rates are used as a base price for various land deals, acquisitions and any other property- related matter. Property rates in open market are usually much higher than the RR rates. But the government approval plays a significant role when it comes to fixing prices or giving compensation.
Effect of RR rates on Pune real estate
An increase in RR rates leads to an increase in property prices as stamp duty and registration charges go up, and both these charges are important components of the total price of a property. The increase in RR rates has come about when the property market across the country is slow and people are waiting for the prices to go down.
However, Pune does not face as many challenges as Mumbai because the price points in Pune are lower than that of the financial capital of the country. Moreover, the increase in Pune and Mumbai is lesser than many other cities as most people in these areas belong to the salaried class who opt for loans, which is accounted money.
