Pune Circle Rate Proposed To Be Hiked (Ready Reckoner Rates)
Pune circle rate (Ready Reckoner Rates) are proposed to be hiked by 3% this year, and the final announcement is expected to come by April 1, 2018. The proposed hike is marginal compared to the previous years, the rates were increased by 13% in 2010, in 2011 by 27%, in 2012 by 17%, in 2013 by 12%, in 2014 by 13%, in 2015 by 15% and in 2016-17 by 7%.
As per the governing authority, the hike was based on detailed surveys undertaken by the town planning department. The rates were decided based on the number of sales and registrations in each zone.
RR rates indicate the value of land or residential and commercial properties of an area determined by the state government, and are published annually. RR rates vary as per the area under consideration and the available infrastructure facilities. They have an impact on the stamp duty on property transactions, and concurrently on the revenue mop-up of the state government.
While the real estate sector is still recovering from the triple tsunami of Demo, RERA, GST, a hike in RR rates in Pune at this time may hamper homebuyer sentiments. In the current affordable housing focused era with low interest rates on home loans and RERA being implemented, increased RR rates will be a hard blow to the Pune’s real estate sector.
As per Pune’s market scenario, property prices are likely to remain stable in the short-to-medium term. Demand and supply have both reduced in the city post-DeMo and RERA. Keeping the RR rates unchanged will be beneficial for the city’s real estate sector, benefit end-users and reduce the burden of tax payment on property transactions.
Increased RR rates are beneficial only when the market prices are high and the market is performing well in terms of sales. If the market prices are low and the RR rates are high, it will give rise to unfavourable conditions for both builders and buyers.
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