Owing to high Mumbai property prices the city is considered as one of the most expensive real estate sector in the country when compared to properties in India. Buying a property in Mumbai is a herculean task as real estate Mumbai prices are already touching the roof but this didn't deter the state government to increase the ready reckoner rates by an average 7.9%. The increase in ready reckoner rates means that the stamp duty charges which are calculated on the RR rates basis, would go up.
Increase in RR rates has impacted the Mumbai property prices and developers are unhappy about the situation as the market is already facing a slump. The recovery of the real estate market has been stopped as real estate Mumbai prices will increase significantly in some areas. Let us take an example of Powai. People who were looking to buy flats in Powai are in a state of shock as the RR rates of the area have been increased by 132%. This means people who were looking to buy flats in Powai will now have to pay a significantly high stamp duty as well as registration fees. Also people who are living in property in Powai will have to pay more property tax as RR rates also determine the recurring property taxes. Developers of property in Powai say that this move will adversely affect the sales of flats in Powai as the cost of construction will go up significantly. Builders of property in Powai are worst affected as several payments to civic authorities are made on the RR basis.
As the cost of construction will increase the Mumbai property prices will also increase. Amongst all properties in India people look to invest in Mumbai but if the real estate Mumbai prices continue to see a significant hike then the investor might think of investing in other properties in India.
Increase in RR rates has impacted the Mumbai property prices and developers are unhappy about the situation as the market is already facing a slump. The recovery of the real estate market has been stopped as real estate Mumbai prices will increase significantly in some areas. Let us take an example of Powai. People who were looking to buy flats in Powai are in a state of shock as the RR rates of the area have been increased by 132%. This means people who were looking to buy flats in Powai will now have to pay a significantly high stamp duty as well as registration fees. Also people who are living in property in Powai will have to pay more property tax as RR rates also determine the recurring property taxes. Developers of property in Powai say that this move will adversely affect the sales of flats in Powai as the cost of construction will go up significantly. Builders of property in Powai are worst affected as several payments to civic authorities are made on the RR basis.
As the cost of construction will increase the Mumbai property prices will also increase. Amongst all properties in India people look to invest in Mumbai but if the real estate Mumbai prices continue to see a significant hike then the investor might think of investing in other properties in India.
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