Maharashtra Announces 3.89% Average Increase in Ready Reckoner Rates; Solapur Sees the Highest Jump, Mumbai Among the Lowest

Mumbai: After a two-year gap, the Maharashtra government has announced a revision in ready reckoner (RR) rates for the financial year 2025-26. The state-wide average increase stands at 3.89%, with municipal corporation areas seeing a steeper hike of 5.95%. The move is expected to help the cash-strapped government generate a minimum of ₹10,000 crore from stamp duty and registration, contributing to its ambitious ₹63,500 crore revenue target for the year.

Solapur Tops the List; Mumbai Sees Modest Increase

Among the cities, Solapur has witnessed the highest jump in RR rates at 10.17%, followed by Ulhasnagar (9%), Amravati (8.03%), and Thane (7.72%). Meanwhile, Mumbai’s increase is just 3.39%, making it the second lowest after Nanded. Experts suggest that the modest rise in Mumbai is due to the fact that RR rates and market rates are already closely aligned.

“Land transactions in Mumbai are rare due to space constraints, and the market is primarily driven by flat sales. Unlike other regions, cash transactions are minimal, leading to a natural equilibrium between RR and market rates,” explained a revenue department official.

How the New RR Rates Impact Property Buyers

The RR rate is the government’s estimate of a property’s value, which forms the basis for stamp duty calculations. Since stamp duty in Maharashtra ranges from 5% to 7%, an increase in RR rates directly impacts the cost of buying a property. With the new rates coming into effect from April 1, homebuyers in cities like Solapur, Navi Mumbai, and Thane will bear higher stamp duty costs.

Real estate developers are also bracing for an impact. Domnic Romell, President of CREDAI-MCHI, noted, “The increase of RR rates by up to 10% was expected. The government had been supportive during the pandemic, but this revision will add to costs, affecting homebuyers and builders alike.”

Similarly, Raajesh Prajapati, MD of Prajapati Group, highlighted concerns over increased construction expenses. “For Navi Mumbai, we were expecting a 5% hike, but the actual increase of 6.75% is higher than anticipated. This will impact land pricing, approval costs, and overall construction expenses.”

Breakdown of RR Rate Increases Across Maharashtra

The government has revised RR rates separately for different regions, with the following increments:

• Rural Areas: 3.36%
• Urban Areas: 3.29%
• Municipal Corporations: 5.95%
• Metropolitan Areas (excluding Mumbai): 5.95%
• Greater Mumbai Municipal Corporation: 3.39%
• State-Wide Average: 3.89%

Solapur Municipal Corporation registered a 10.2% average hike in RR rates followed by Ulhasnagar at 9% and Amravati at 8%. Mumbai city’s average RR rate increase is the lowest at 3.4%. In Pune district, the average RR rate increase is 6.8%. Nashik, Kolhapur and Chhatrapati Sambhajinagar civic areas witnessed a 7.3%, 5% and 3.5% hike in the RR rates, respectively.

The state government has justified the hike by stating that RR rates are revised based on actual registered property transactions in the previous year. The process involves collecting data at a village and zone level, considering suggestions from elected representatives, and obtaining new construction rates from the Public Works Department.

Why Solapur’s RR Rate Saw the Sharpest Rise

Solapur’s 10.17% increase is attributed to its rapid infrastructural development, particularly due to the government’s focus on new highways and connectivity projects. Similarly, Navi Mumbai and Thane have experienced a surge in property transactions in recent years, leading to a sizable hike in their RR rates.

Developers Call for a Balanced Approach

While the real estate industry acknowledges the necessity of updating RR rates, stakeholders have urged the government to adopt a balanced approach to prevent excessive financial strain on homebuyers.

Niranjan Hiranandani, chairman of NAREDCO, emphasized, “The hike in Mumbai’s RR rates is marginal, which is a relief. However, the state-wide 5% average increase will push up development costs, especially for affordable housing projects. The government should consider measures to sustain growth while keeping housing accessible.”

Surge in Property Registrations Ahead of RR Rate Hike

Anticipating the increase in RR rates, the last three months saw a surge in property registrations, helping the government exceed its revenue target. Maharashtra collected over ₹58,000 crore from stamp duty and registration in FY 2024-25, surpassing the target of ₹55,000 crore.

What’s Next for Homebuyers and Investors?

With RR rates now in effect, property prices in Maharashtra are set to rise. Buyers who were planning to invest may find themselves facing higher costs, while developers may adjust pricing strategies to balance demand.

Despite the price hike, Mumbai’s relatively lower RR rate increase could keep its real estate market attractive for investors, especially in the redevelopment segment. For cities like Solapur, Thane, and Navi Mumbai, however, the price hike may slow down transactions in the short term.

As the real estate industry navigates these changes, stakeholders will be watching closely for any further government interventions or policy adjustments to maintain market stability.