The property market in Maharashtra will potentially see a new shift in pricing soon. The government of Maharashtra is expected to increase the state’s Ready Reckoner (RR) rates beginning April 1, according to senior officials. The exact average expected increase will be more than 5% across the state.

The government is expected to officially announce the final increase on March 31.

Why the Increase is Being Considered

Officials say the government is facing growing financial pressure and rising state debt. To bridge the revenue gap and fund welfare schemes and large infrastructure projects, increasing RR rates is being considered.
Stakeholders are currently having discussions at the district level but a definitive decision will be made eventually based on the State Financial commitment and/or the Funding needs of the state.
 

Previous RR Rate Changes

Last year, the government increased RR rates by an average of 3.89% after keeping them unchanged for two years.

Before that, there was a 5% increase in 2022-23.
 

Revenue Targets from Property Registrations

This year, the government is hoping to collect ₹63500 crores in tax revenue through the department of property registrations, an increase over last year's collection amount of ₹60000 crores.
With approximately 85% of this year's revenue projection achieved prior to the conclusion of the fiscal year, estimates indicate that it is possible for overall collections to surpass projections as well, due to the continued processing of property registrations through March 31.
 

Why RR Rates Need Revision

RR rates are calculated based on property transactions in different areas. In many locations, especially major cities like Mumbai, Pune and Thane, actual market prices are significantly higher than the current RR values.
In some pockets, transaction prices are more than 100% higher than the existing RR rates. Because of this growing gap between market value and official rates, officials believe a revision is necessary.
 

State’s Rising Fiscal Deficit

The projected revenue deficit for Maharashtra's state budget approved in March 2025 was ₹45890 crore.
Since that time, two additional budgets were approved in June and December 2025. Thus, increasing the deficit significantly and projecting around ₹200000 crore.
Additionally, total debt in the state of Maharashtra will be approximately ₹9.32 lakh crores.
During the current legislative session, Devendra Fadnavis has also proposed an additional supplementary budget of ₹11,995.33 crore.
 

Developers Oppose the Increase

Real estate developers have requested the government not to increase RR rates this year.
Members of CREDAI say the real estate market is already stable and performing well. According to them, RR rates were unchanged for two years and were revised only recently last year, so another increase may not be necessary.
They also believe that frequent increases could impact the middle-class homebuyers.
 

Strong Property Market Activity

Developers also pointed out that property registrations have been strong in recent years.
The registration department achieved around 140% of its revenue target in 2022-23, and 100% of the target last year, showing that the property market is already contributing significantly to the state’s revenue.
Because of this steady growth, many industry experts feel the government should carefully consider the impact before increasing RR rates again.