Owning a dream home in Mumbai has just become costlier, prompting many buyers to put their plans on hold. The Maharashtra government, late Monday evening, announced a 4.3 per cent hike in <a href="https://www.mid-day.com/mumbai/mumbai-news/article/maharashtra-government-increases-ready-reckoner-rate-by-4-39-per-cent-23510464" target="_blank" rel="none noopener">Ready Reckoner</a> (RR) rates across the state for the financial year 2025-26.
Legal experts weigh in
According to real estate lawyer Advocate Dharmin Sampat, &ldquo;In Mumbai City Jurisdiction, areas like Malabar Hill, Cumballa Hill, Fort, and Worli have seen a marginal increase in RR rates. However, Mahim, Dadar, Girgaum, Bhuleshwar, and Sion have witnessed a sharp rise of approximately 10 per cent, indicating a sudden surge in property valuations.&rdquo;
Sampat pointed out that several redevelopment projects are struggling due to a lack of buyers. &ldquo;In some areas like <a href="https://www.mid-day.com/mumbai/mumbai-news/article/maharashtra-over-1000-real-estate-ads-in-state-found-to-be-misleading-23462711" target="_blank" rel="none noopener">Ghatkopar East</a>, Tilak Road, and Pant Nagar, property prices have fallen by over 20 per cent, despite rising construction costs. This shows that, in today&rsquo;s market, investors prefer stocks and gold over real estate. The average return on residential property investment is around 3 per cent, which is even lower than inflation. In my view, real estate investments are yielding negative returns, which is a troubling sign. Many builders might fail to honour their commitments, especially in areas where FSI is as high as 10, leading to an oversupply and further price drops.&rdquo;
<img src="http://images.mid-day.com/images/images/2025/apr/Zone_e.jpg" alt="" width="1280" height="720" />
He further explained, &ldquo;RR rates, also known as the Annual Statement Rate (ASR), determine the market value of immovable property and form the basis for calculating stamp duty under the Maharashtra Stamp Act.&rdquo; Stamp duty is a key revenue source for the Maharashtra government. &ldquo;The state&rsquo;s 36 districts, divided into eight regions including <a href="https://www.mid-day.com/mumbai/mumbai-news/article/maharashtra-real-estate-body-directs-self-regulatory-organisations-to-replace-representatives-with-two-years-tenure-23464320" target="_blank" rel="none noopener">Mumbai</a>, Thane, Pune, and Nagpur, are under the jurisdiction of the Deputy IGR. In 2024-25, 13,40,464 documents were registered, generating Rs 35,858.54 crore in revenue,&rdquo; Sampat added.
Advocate Vinod Sampat, president of the Registration Fee &amp; Stamp Duty Payers Association, painted a bleak picture for real estate. &ldquo;The days of property being a lucrative investment are over. The government acts as a silent partner to builders, collecting 50-60 per cent of payments made by homebuyers through stamp duty, GST, land taxes, and other premiums,&rdquo; he said.&nbsp;
Homebuyers rethinking
&ldquo;I was looking for houses in Andheri but will now consult my financial advisor before proceeding. I need to assess the impact of higher stamp duty on my budget. If the increase is manageable, I will continue my search,&rdquo; said Sahil Chaphekar, a software engineer. Naitik Kapadia, a wedding-wear shop owner from <a href="https://www.mid-day.com/mumbai/mumbai-news/article/mumbai-bmc-seizes-properties-rs-21-63-crore-over-unpaid-property-tax-by-two-developers-23497605" target="_blank" rel="none noopener">Dadar</a>, echoed similar concerns. &ldquo;I need to re-evaluate my finances before making a decision. I don&rsquo;t yet know how much this will affect my budget,&rdquo; he said.
Others push ahead
However, some homebuyers remain unfazed. Nishad Shukla, who plans to buy a house in Ulwe, said, &ldquo;Property rates only go up. Delaying this decision will mean paying even more later.&rdquo; Sheetal Patole, a 32-year-old banker, agreed. &ldquo;Whether I buy a house for R50 lakh or R1 crore, I will still take a loan. Waiting won&rsquo;t help, as prices will only appreciate further,&rdquo; she said.
Industry experts weigh in
Arpit Jain, director at Arkade Developers Ltd, noted that mid-range and luxury buyers might absorb the increased costs, but developers may need to adjust pricing strategies to maintain sales momentum. &ldquo;<a href="https://www.mid-day.com/mumbai/mumbai-news/article/bmc-may-drop-property-tax-shocker-on-mumbai-23471447" target="_blank" rel="none noopener">Mumbai</a>, which has seen a 3.4 per cent RR rate hike, may experience measured adjustments due to its already high property values,&rdquo; he said.&nbsp;
Affordable housing hit
Anuj Puri, chairman of Anarock Group, warned that the hike could impact affordable housing the most. &ldquo;Higher upfront costs, stamp duty, and registration fees make home ownership less viable for lower-income buyers. Developers may struggle to balance affordability and profitability, slowing down new projects,&rdquo; he explained.
Zone-wise impact in Mumbai Effective 01.04.2025 &ndash; 31.03.2026
Total sub-zones: 352&nbsp; 76 new residential sub-zones added&nbsp; Rates reduced by more than 10&#37: 1 sub-zone&nbsp; Rates reduced up to 10&#37: 3 sub-zones&nbsp; Rates reduced up to 5&#37: 13 sub-zones&nbsp; No change in rates: 66 sub-zones&nbsp; Rates increased up to 5&#37: 55 sub-zones&nbsp; Rates increased up to 10&#37: 137 sub-zones&nbsp; Rates increased by more than 10&#37: 1 sub-zone
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