The house that I was looking to buy cost around Rs 1 crore and now the cost has increased by Rs 5 lakh after the rates have been changed as there is an approximate five per cent rise in property rates in areas around Andheri-Vile Parle according to my financial advisor. He mentioned that with this additional Rs 5 lakh, along with the addition in stamp duty and registration charges and considering that I will do the interiors of the house after a year or so, the house would work out to be Rs 7 lakh-Rs 8 lakh more expensive today,” said Sahil Chaphekar, a software engineer working at a private company in the city, who is now re-thinking his decision of buying the house.

The increase in ready reckoner rates (RRR) has raised concerns in the real estate market as homebuyers are concerned about an increase in property prices and developers are concerned about constructing affordable homes. At 51 per cent, Mumbai’s affordability has already crossed the threshold of 50 per cent in terms of buying a home, observed JLL India in its recent affordability index study. “The real estate landscape in Mumbai operates within a delicate balance of policy incentives and regulatory adjustments. While initiatives like the Pradhan Mantri Awas Yojana (PMAY) have provided a much-needed push to the affordable housing segment, the recent increase in RRR will naturally lead to a corresponding rise in property prices and stamp duty charges. For developers, especially those operating in the affordable housing segment, this presents an added challenge as margins are already razor-thin due to high construction costs, premium charges, and compliance requirements,” said Sandeep Ahuja, Global CEO of Atmosphere Living.