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Housing Prices Will Escalate If RR Rates Increased -CREDAI Maha

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Credit Maharashtra

Pune: Given the long-standing struggles of the construction industry due to demonetization, the pandemic, and subsequent economic distress, Pramod Khairnar Patil, President of CREDAI Maharashtra, has urged the state government not to raise the ready reckoner rate this year. This step will aid in the faster recovery of the construction industry. He also suggested that the government announce these RR rates every three years.

The state government increases the ready reckoner rate by about 8 to 10 percent on April 1st of new financial year. However, with the Lok Sabha elections looming and the subsequent enforcement of a code of conduct, the state cabinet has not yet announced their decision on RR rates. This indicates that there might be an increase in this rate for the current year. Increasing the ready reckoner rates means higher prices for houses, premiums, TDR costs, labor expenses, construction costs, GST, and income tax, affecting consumers' pockets. Hence, the government should reconsider the plea made by CREDAI Maharashtra, he added.

While the government aims to make housing more affordable, the rising ready reckoner rate over the past ten years has become a concern for builders. Last year, there was no increase, which was good news for people buying homes. But developers are unsure if the rates will remain the same this year, expressed Vidyanand Bedekar, Secretary, CREDAI Maharashtra.

Buyers also have to pay GST on top of stamp duty, adding to their expenses. Builders are positive about meeting the targets of the Pradhan Mantri Awas Yojana, but they also seek government support for the real estate market to stay afloat. For this, Maharashtra should follow the lead of other states in handling this issue. Hence, an appeal has been made to the state government to make houses affordable for the common man. Considering the actual price of land in the market and the cost of construction, there should not be any increase in this ready reckoner rate, said Ravindra Khilare, Joint Secretary, CREDAI Maharashtra.

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