Status quo on Ready Reckoner rates to benefit realtors, buyers
PUNE: Home buyers can expect a realistic pricing with the state government deciding to maintain a status quo on the Ready Reckoner (RR) rates this year.
Industry experts said the government’s decision not to increase the RR rates would boost the buyers’ sentiment that was lacking for the past one year.
RR rates are assessments of property value by the state government, on the basis of which stamp duty and registration charges are paid. The government usually revises the rates every year. The government, however, decided to keep the rates unchanged because of the overall slump in the real estate sector after the demonetization drive and introduction of the Real Estate Regulatory Authority(RERA) and GST.
Confederation of Real Estate Developers Associations of India (Credai) national president (elect) Satish Magar said the government’s decision would to keep prices stable and ensure an increase in the volume of transactions and boost the realty sector as a whole.
“This will also help the developers charge lower than the existing prices, especially in the affordable housing sector,” he said.
The developers’ body had repeatedly requested the state government to not increase the RR rates this year because of the ongoing slowdown in the sector.
State Credai president Shantilal Kataria said the RR rates were already “very high” in Maharashtra and any further increase would have hit the ailing realty market. With the RR rates remaining unchanged, he said, the developers can go for a realistic pricing. “The artificial pricing due to the hike in RR rates will be curtailed, as the buyers were unnecessarily made to share the burden of the differential cost in the form of higher stamp duty,” he said.
Pune Credai president Shrikant Paranjape said though the RR rates were an average rate, genuine transactions valued below it were affected because of the income tax factor.
“The Union budget has exempted transactions up to 5% below the ready reckoner from such artificial taxations. The budgetary amendment and the status quo in the RR rates will help such genuine transactions and registrations. This will help both the customers and the developers.” Paranjape said.
Realtor analyst Anuj Puri from Anarock property consultants said any hike would have had a negative impact on the market, as the previous years saw huge hikes. “Keeping the RR rates unchanged will benefit the city’s real estate sector and the end-users. It will also reduce reduce the burden of tax on property transactions.”
The state government had last week decided not to increase the RR rates, giving a respite to the homebuyers and developers alike. This was the second time after 2009 that the government decided to maintain a status quo on the rates. Last year, the RR rates were increased by 5.86% on an average.
Source : The Times Of India
