No hike in ready reckoner rates
| Date :02-Apr-2019 |
Staff Reporter,
For the second year in a row, Maharashtra Government has decided to keep the present ready reckoner rates intact due to slump in realty sector. The Inspector General of Stamps and Registration Office, Pune has sent a circular to all the offices of Deputy Inspector General of Stamps and Registration Department in the State to maintain the old ready reckoner rates and register property and documents as per old rates. Though the Registrar of Stamps had proposed moderate hike in the ready reckoner rates, the State Government issued a clear direction on Monday asking the authority to continue the old ready reckoner rates. With relaxation in GST of affordable housing stock, reduced home loan rates and unchanged ready reckoner rates, the property market is likely to witness some positive movement during Gudhi Padwa and Akshay Tritiya, considered as the most auspicious period for property transactions.
The government had revised ready reckoner rates in the 2017-2018 and same would continue during financial year 2019-2020. This will be effective from April 1, 2019. In fact, the earlier hike in ready reckoner rates which was even more than the existing market price of land and flats, also led to slowdown in transactions. Though the land prices witnessed a drop, due to shortage of buyers with deep pockets and stringent norms of financial institutions to provide easy credit to realtors, the ready reckoner rates were not adjusted and remained on the higher side. As a result, there was a huge demand from the realtors and developers to reduce the ready reckoner rates and bring them in sync with market realities. According to most builders, present rates are not affordable as market is stagnant for last two-three years. In some areas, the land and flat prices are actually going down and these rates must be made more realistic. According to some property experts, linking of property purchase with Income Tax has created problem for the buyers as they have to pay tax on the difference amount of ready reckoner rates and actual purchase rates.
Right now, the property market is witnessing some movement in areas situated on the periphery of Nagpur due to its affordability and most new schemes are coming up in areas like Bhamti, Besa, Beltarodi, Hingna road, Kamptee road, Jaitala and along Outer Ring Road, Koradi road, Amravati Road, Chhindwara Road, Umred Road. Whereas, core areas like Ajni, Sitabuldi, Deonagar, Khamla, Jaiprakash Nagar, Dharampeth, Ramdaspeth, Gandhibag, Mahal, West High Court, Dhantoli, Congress Nagar have become out of bounds for the investors and buyers due to artificial hike in prices.