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The Maharashtra government recently increased the ready reckoner (RR) rates across the state. The average rise was 3.89 per cent, though some regions saw hikes as high as 10.17 per cent.

- SANJAY KUMAR SINGH & KARTHIK JEROME

How RR rate is revised The RR rate is the minimum value at which a property must be registered during a transaction. "It is set by the state government and serves as a reference for calculating stamp duty and registration charges. It ensures uniformity and transparency in property transactions, and acts as a safeguard against underreporting," says Deepak Khandelwal, principal partner and chief sales officer, Square Yards.

This rate is also known as the circle rate or guidance value in some states. "The valuations of actual registered transactions that have taken place in an area in the recent past are used to revise the RR rate," says Sajid Mustafa Baig, vice-president (residential sales and marketing), Silverline Realty LLP.

What the hike means In areas where market rates exceed RR rates, the revision will have limited impact. "In such areas, the stamp duty and registration charges would already be calculated based on market price," says Khandelwal. There could be some impact on market sentiment.