Pune developers request govt not to raise RR rates

PUNE As the administration is trying to assess the changes in the Ready Reckoner (RR) rates, CREDAI Pune Metro, an apex body of real estate developers has urged the state government to not increase the ready reckoner rates this year. Last year, there was no revision in the rates, which are usually announced in April due to the pandemic.

As the state budget session is nearing, the developers have said that an increase in the reckoner rates will further add to the price of and this will have adverse impact on buyers. Meanwhile, refuting the reports of proposed hike in RR rates the registration department has clarified that no such proposal has been prepared as of now.

“The real estate industry is still trying to recover from the pandemic induced slow-down. In such a situation it would not be advisable to increase the ready reckoner (RR) rates. Construction cost has increased by about 25% in the last 18 months. Increase in RR will further add to the price,” said Anil Pharande, president, CREDAI Pune Metro.

The last hike in RR rates was announced in September 2020, when the market values for properties across the state rose by an average 1.74%. Considering the slowdown in the construction industry, the government hadn’t revised the rates in 2018-19 and 2019-20.

“No such proposal of hike in the rates has been made as of now,” said Shravan Hardikar, Inspector General of Registration.

A senior official from the department of town planning and valuation, Pune Division requesting anonymity said, “It is a decision which is taken on the state level and it will be applicable to every district. Whenever it is decided the office of IGR will declare it. So, people should not speculate. Currently, the assessment process is going on. The final decision will be taken by the state government.”

However, Ajit Pawar recently said that there was no consensus in the administration on how should the rates be changed.

“At many places the RR rates are much higher than market rates and need immediate. Also, an increase in RR rates will increase the premiums and houses will be expensive. Many developers in the affordable housing sector are selling below RR. So far 20% was permitted as a Covid relief for transactions below RR price. Now that concession has also been withdrawn, houses will also be expensive in the affordable segment. Necessary and timely action by the state govt will not only help the real estate industry, but will also benefit the common home buyer particularly in the affordable segment,” said Pharande.