Pune Homebuyers Face Potential Cost Increase as Maharashtra Considers Ready Reckoner Rate Revision
Purchasing a flat in Pune could become more expensive in the upcoming financial year, according to senior revenue department officials who indicated on Tuesday that Ready Reckoner (RR) rates might see an upward revision in April. This potential increase comes in response to the state's widening revenue deficit and mounting debt obligations, partly driven by welfare initiatives such as the Ladki Bahin Yojana.
Revenue Pressures Driving Potential Rate Adjustment
Officials revealed that district-level consultations with stakeholders are currently underway, with the final decision dependent on funding requirements for infrastructure projects, welfare schemes, and recently announced concessions. A senior revenue department official explained, "Considering the expanding revenue deficit and significant rise in supplementary demands, revising RR rates appears to be a necessary step. However, it's important to note that no definitive decision has been reached at this stage."
The stamps and registration department stands as Maharashtra's highest revenue generator, making RR rate adjustments a critical fiscal tool for the government.
Historical Context and Current Performance
After maintaining stability for three consecutive financial years, the government implemented an average 3.9% RR rate increase across the state last year, following a previous average hike of 5% in 2022-23. For the current fiscal year ending March 2026, the property registration department has established an ambitious revenue target of Rs 63,500 crore, revised upward from the initial Rs 60,000 crore. Remarkably, the department has already achieved approximately 75% of this target, demonstrating robust performance.
Developer Opposition and Market Concerns
Real estate developers have strongly opposed any potential RR rate increase, arguing that the sector's strong revenue collections make such revisions unnecessary. Credai members emphasized that property registrations remain healthy and the real estate market continues to show buoyancy, a trend expected to persist. One developer noted, "Previously, the government's decision to maintain unchanged RR rates for three financial years—following requests from citizens and developers—played a crucial role in preserving market stability."
Shantilal Kataria, a Credai national governing council member, pointed out that the state has successfully generated sufficient revenue without raising RR rates in the past. He stated, "Similar to other concessions, the government should ensure the middle class isn't overburdened. RR rates should remain unchanged for the next financial year since they were already increased this fiscal year. Market vitality must be carefully evaluated before making any sudden decisions. We have previously urged the government against revising rates again."
Another Credai representative highlighted that any further RR rate increase could adversely affect the real estate sector, noting that the department exceeded its targets significantly in recent years—achieving around 140% in 2022-23, 100% in 2023-24, and 105% in 2024-25. Developer associations contend that this consistent performance provides ample justification for maintaining current RR rates, even as the government evaluates additional revenue needs to support welfare commitments.
How RR Rates Impact Property Transactions
Ready Reckoner rates determine stamp duty and registration charges, varying according to location, infrastructure, amenities, and property type. Meera G, a prospective homebuyer planning to purchase property in the next financial year, expressed concern that an RR hike could disrupt her plans. "Builders might use this as justification to increase prices since RR serves as the base rate. Properties currently priced below RR would attract higher stamp duty and taxes if rates rise," she explained, adding, "Any increase would elevate overall costs, diminish purchasing capacity, and negatively impact the market."
Maharashtra's Fiscal Challenges
The state faces substantial fiscal pressures, with the revenue deficit projected at Rs 45,890 crore in the March 2025 budget. This figure escalated to over Rs 1 lakh crore following supplementary demands in June 2025 (Rs 57,509.71 crore), and further increased to nearly Rs 2 lakh crore after another request last December (Rs 75,286.37 crore). Total debt is anticipated to rise to Rs 9.32 lakh crore, underscoring the financial constraints prompting consideration of RR rate adjustments.
