Property deals to be costlier as ready reckoner rates up 7%

Buying and developing properties in Mumbai and rest of Maharashtra is set to become costlier, as the government on Thursday announced increase in ready reckoner rates by an average 7%, effective from Friday.

The stamp duty on property transactions, calculated on the basis of RR rates, would go up as a result. Revenue minister Eknath Khadse made the announcement in the legislative Assembly here.

The increase would be 5% in municipal corporation limits, seven per cent in municipal council limits and 8% in the rural areas. The government decided to effect only "moderate" hike in RR rates considering the slump in real estate sector and the drought, Khadse said.

Ready reckoner (RR) rates are market values of a property determined by the government for payment of stamp duty.