In a significant policy move aimed at sustaining momentum in the property market, the Maharashtra government under the leadership of Devendra Fadnavis has decided to keep Ready Reckoner (RR) rates unchanged for the financial year 2026–27. The announcement, made by Minister Chandrashekhar Bawankule, comes against the backdrop of global economic uncertainties and rising input costs that have been exerting pressure on the construction sector.
By maintaining RR rates at existing levels, the government has offered a much-needed breather to both developers and homebuyers, as it directly impacts property valuations and stamp duty outflows. The move, reportedly taken after considering recommendations from Confederation of Real Estate Developers' Associations of India, is expected to support demand sentiment, improve affordability, and ensure continued traction in Maharashtra’s real estate market.
"For the year 2026-27, since rates have been kept stable across all locations throughout the entire state, the common citizen's pocket will not face any additional financial strain," Maharashtra Revenue Ministry said in a statement on March 31.
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Prashant Sharma, President, NAREDCO Maharashtra said: “The decision by the State government to maintain status quo on Ready Reckoner rates is both timely and pragmatic. In a market already navigating global uncertainties and input cost pressures, this move will help sustain demand momentum and provide much-needed stability to the sector. It also reflects the government’s responsiveness to industry concerns and its intent to support housing affordability and overall market sentiment.”
The Maharashtra government last year had announced an average increase of 3.89% in ready reckoner rates for the financial year 2025-26, following a two-year gap.
Mumbai real estate developers welcomed this move to keep the ready reckoner rates unchanged.
Kamlesh Thakur, Co-Founder & Managing Director, Srishti Group stated, “At a time when construction costs continue to rise, maintaining the existing RR rates helps avoid additional financial strain on developers. More importantly, it preserves affordability for end-users, which remains critical to sustaining housing demand and supporting overall market momentum.”
Kaushal Agarwal, Chairman, The Guardians Real Estate Advisory exclaimed: “This is a significant relief for both homebuyers and developers. Any upward revision at this juncture could have impacted transaction volumes, especially in a price-sensitive market like Mumbai. This decision will help maintain pricing equilibrium and encourage fence-sitters to move forward with their purchase decisions.”
Shraddha Kedia-Agarwal, Director, Transcon Developers remarked: “This is a progressive and industry-friendly decision by the state government. Stable Ready Reckoner rates will help maintain confidence among homebuyers and investors alike, particularly at a time when global headwinds are influencing economic sentiment. It will also aid developers in better planning and pricing of projects without the added uncertainty of increased statutory costs.”
Ready reckoner rates in previous years
In recent years, RR rates have seen periodic increases. In 2017-18, rates rose by an average of 5.86 per cent, while a modest 1.74 per cent hike was recorded in 2020-21 during the COVID-19 period. Furthermore, a 4.81 per cent increase was implemented in 2022-23 and continued for two years.
In 2025-26, rates increased by 3.36 per cent in rural areas, 4.97 per cent in municipal council areas, and 5.95 per cent in municipal corporation regions.
Meanwhile, ready reckoner rates in Mumbai rose by 3.39 per cent. The latest decision, however, marks a departure by freezing rates across the state.
What is ready reckoner rates?
Ready reckoner rates (RR rates) are the minimum rates based on which the government can charge registration fees and stamp duty on a property transaction. They are also used to calculate capital gains for income tax. RR rates are linked to all premiums, charges, and floor space index (FSI) rates payable by real estate developers to municipal corporations. The rates are released at the beginning of the financial year in Maharashtra.
The RR rate, also known as the ‘circle rate’ or ‘guidance value’ in several parts of the country, is the minimum per sq ft rate of a property or land fixed by the state government. The RR rate is deemed the minimum market rate. But if one sells their house or land at a lower rate than the RR rate, the buyer’s stamp duty and other charges are linked to the RR rate. If it is sold for a higher rate than RR rates, the stamp duty is linked to the higher rate, also known as the market rate.