The Mumbai Metropolitan Region (MMR) real estate market is set to witness a significant shift with the impending 5-10% hike in Ready Reckoner (RR) rates for 2025-26, effective from April 1. Inspector General of Registration (IGR) Ravindra Binwade confirmed this revision, which is expected to impact homebuyers, commercial office spaces, and retail real estate across high-value zones in MMR.
With the hike approaching, homebuyers and developers are rushing to stamp duty registration offices to submit documents before the deadline of March 31. The urgency is fueled by concerns over rising property costs and potential financial strain on buyers.
Real estate experts believe the revision will further stress the property market, which is already experiencing a slowdown due to fluctuations in the stock market. Developers anticipate that the increased RR rates will lead to a rise in property prices, making affordability a concern for prospective buyers.
The RR rate hike will be implemented based on high-value or high-volume registrations in specific zones, including:
Abhishek Kiran Gupta, CEO of CRE Matrix and IndexTap, noted that the revision would place additional pressure on an already slow market, further affected by stock market fluctuations. Developers, grappling with oversupply in Mumbai's residential market due to ongoing redevelopment projects, fear that the burden will eventually be passed on to homebuyers.
Chintan Sheth, Chairman and Managing Director of Sheth Realty, emphasized that the current market downturn leaves little room for developers to absorb the RR hike without affecting sales and customer sentiment. Arthh K Mehta, Chairman and Managing Director of Paradigm Realty, echoed similar concerns, stating that developers will be left with no choice but to transfer the increased costs to buyers.
In response to the hike, developers are expediting project approvals before the implementation. The Brihanmumbai Municipal Corporation’s (BMC) building proposal department will remain operational over the weekend to facilitate approvals, especially during the auspicious occasions of Gudi Padwa and Eid.
Despite the fact that RR rates have remained unchanged for three years, the Maharashtra government has successfully met its revenue target of ₹55,000 crore for 2024-25 through stamp duty registrations. With collections surpassing ₹55,102 crore as of March 2025, the new RR rates aim to help achieve an ambitious target of ₹60,000 crore for 2025-26.
The upcoming RR rate hike is poised to reshape Mumbai’s real estate landscape, influencing homebuyers, developers, and investors alike. While the increased rates could boost government revenues, they may also pose challenges for affordability and market stability. As stakeholders brace for the changes, the real estate sector remains watchful of the long-term implications on property sales and investment trends in MMR.
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