Shares of Mumbai-based real estate companies fell as much as 3.34% after the Maharashtra government increased ready reckoner rates for property transactions. The state government increased ready reckoner rate for Mumbai properties by an average of 3.39% for FY26.
Ready reckoner rates are the minimum rates at which government charges stamp duty and registration for any property-related transactions. Below the ready reckoner rates which properties cannot be transacted. If reckoner rates are more than market rates of properties, there will be tax implications and registration issues, experts said.
Among real estate stocks, Oberoi Realty shares fell 3.94%, Godrej Properties fell 3.93% and Prestige stock fell 3.83% on Tuesday. Nifty Realty Index which fell 3.11% was the biggest sectoral losers on Tuesday. NSE 50 Index fell 1.5% on Tuesday.
The state government’s move comes at a time when property sales in top nine cities in the country have fallen 23% on a yearly basis in March quarter this year, according data analytics firm PropEquity.
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Domnic Romell, President of real estate developers body CREDAI-MCHI said, “These hikes could pose a challenge, particularly in the affordable and mid-income housing segments, which are already feeling the strain of rising input costs and financing challenges.” The increased RR rates may impact housing affordability, especially for first-time home buyers who are already grappling with tight budgets,Romell said .
For developers, this increase translates into a direct rise in stamp duty outgo for home buyers and escalated costs for premiums, FSI charges, and fungible components – all of which are calculated on RR values. This could constrain the viability of affordable housing projects and even some mid-income housing projects, he said.
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