The Maharashtra government has announced a revision in Ready Reckoner (RR) rates for the financial year 2025-26. This marks the first adjustment in two years, and while the state’s average increase is 3.89%, Mumbai has seen one of the lowest hikes at just 3.39%.
In contrast, Solapur, a city that has undergone rapid urbanisation, experienced the highest increase of 10.17%, reflecting the dynamic growth in regional property markets.
The rise in RR rates is expected to significantly impact property transactions across the state, as the Maharashtra government is projected to collect a minimum of ₹10,000 crore in revenue, as part of its broader goal of ₹63,500 crore from stamp duty and registration fees for FY 2025-26. The increased rates are anticipated to have a ripple effect on the housing market, especially in urban areas where the hikes are more pronounced, reaching 5.95% in municipal corporations. Mumbai, however, has witnessed a more conservative adjustment, with the city’s RR rates rising by just 3.39%, the second-lowest increase in the state, after Nanded. The relatively small hike in Mumbai’s RR rates is attributed to the city’s unique real estate dynamics. A senior official from the state revenue department noted that land transactions in Mumbai are rare due to the scarcity of land, with the market being predominantly driven by flat sales. The alignment of RR rates with market prices is a key factor contributing to the relatively low increase in the city’s property rates.
The changes in RR rates also highlight the government’s approach to treating different geographical zones differently. While Mumbai’s property market operates under distinct dynamics, cities like Solapur and Ulhasnagar have witnessed surging development, which has led to substantial increases in their RR rates. For instance, Solapur’s rapid growth following the launch of new highways and urban infrastructure projects has seen property values rise, prompting the 10.17% increase in RR rates. Thane and Amravati have also seen substantial hikes, with increases of 7.72% and 8.03%, respectively. The revision is based on last year’s property transaction data, with the government adjusting the rates to reflect current market conditions. RR rates serve as a benchmark for determining stamp duty, and the rates are generally lower than actual market values. This means that while property prices may continue to rise in line with market demand, the RR rates are typically set at more conservative levels, often lower than the actual sale prices.
With the new RR rates, property buyers across Maharashtra will face higher stamp duties, which range between 5% and 7%. The hike in stamp duty will particularly impact the construction and real estate sectors, as builders and developers adjust their pricing to account for the higher costs of land and approvals. In Navi Mumbai, for instance, the rate increase of 6.75% is expected to raise construction costs and approval fees, as noted by industry players like the founder of the Prajapati Group. Developers are likely to pass these costs onto consumers, especially in premium sectors. The government has carefully considered various factors, including public feedback and transaction data from across the state, when deciding on the rate hikes. These revisions are also informed by the rise in real estate transactions over the past year, especially in high-growth areas. The government is hopeful that the revised RR rates will contribute to the state’s fiscal health, which has been under strain in recent years due to various socio-economic challenges.
As the revised rates come into effect, the real estate market in Mumbai and across Maharashtra is likely to witness fluctuations, especially as the stamp duty adjustments will affect home buyers’ purchasing power. Industry experts suggest that the increase in RR rates reflects both the state’s recovery from the pandemic and the gradual revival of the real estate sector. In conclusion, while Mumbai’s RR rates saw a modest rise compared to other cities, the broader increase in property valuations across Maharashtra, particularly in emerging urban areas, points to the state’s continuing urban expansion. As Mumbai’s real estate market adapts to these changes, stakeholders from developers to buyers will closely monitor how these adjustments influence the cost of property and overall market sentiment in the coming months.
