CREDAI Wants RR Rates Unchanged

PUNE: The State Government’s Department of Registration and Stamps has proposed a hike in the Ready Reckoner (RR) rates. Such an increase will hurt home buying and the real estate sector. So, the government should consider keeping the RR rates unchanged, opined Ranjeet Naiknavare, President of CREDAI Pune Metro.

“A hike of 5% to 8% in Ready Reckoner rates will increase the input costs and stamp duties resulting in the price hike of about Rs.2 Lakhs to Rs.5 Lakhs as far as its impact on the real estate sector in the city of Pune is concerned. RR rates are linked to input costs such as FSI, TDR, premiums, Paid FSI, development charges, and stamp duty calculations in any JV, transfer documents, gift deed, or sale deed. This direct increase in price will affect the current sentiment of enthusiasm amongst home buyers and may lead to holding their decisions regarding home buying“, said Ranjeet Naiknavare.

“Ready Reckoner Rates directly impact the buying capacity of a home buyer and the input costs of a developer. Moreover, this impact is a long-term one. So, we are asking the Government to keep the Ready Reckoner rates steady. The growing city of Pune has emerged as one of the fastest-growing real estate markets in the country in 2023 as compared to the numbers of 2019. Pune, which is one of the most sought-after locations for people to settle down, has clocked the sale of 90000 (ninety thousand) flats in 2023, which is the highest in the country. The average cost of a flat in Pune is about Rs.64 Lakh which is affordable as compared to other cities like 71 Lakhs in Hyderabad, 86 Lakhs in Bangalore, 111 Lakhs in Delhi &  118 Lakhs in Mumbai. This affordability will get affected if the RR rates increase“, he added.

According to him, the steady RR rates have resulted in the government getting a revenue of about Rs.42000/- Cr in the last 11 months, which clearly indicates the rise in registration of buying – and selling of properties. Pune has been the best-performing real estate market in India and that is primarily due to its affordability along with other factors such as young talent, weather, culture, and job opportunities in various sectors. Credai Pune has been having a dialogue with the concerned ministry and the department not only to request them to keep the RR rates steady but also for certain important changes required in the footnote. So, for the benefit of the consumers and to keep up the momentum in home buying, RR rates should remain unchanged, Naiknavare concluded.