Maharashtra Property Registration Numbers Regain Highs

The property registration department has successfully reached 83% of its revised revenue target for the fiscal year 2023-24, which was adjusted to Rs 50,000/- crore from the initial Rs 44,000/- crore due to the high volume of registrations and revenue collection. From April 1 to the end of February, the department recorded over two lakh monthly registrations, accumulating a total of Rs 24.98 lakh registrations and revenue collection of Rs 41,911.51 crore. This makes the registration department the second-largest contributor to the state exchequer. Monthly earnings have consistently exceeded Rs 3,500/- crore, emphasizing the department's robust financial performance.

As the financial year approaches its end on March 31, and with the anticipation of new Ready Reckoner (RR) rates, developers have appealed to the state government to maintain the current RR rates to sustain the prevailing market buoyancy. The RR rate, equivalent to the "circle rate" or "guidance value" in various parts of India, establishes the minimum per square foot rate for a property set by the state government. Developers argue that altering the RR rates could disrupt the positive market trend. In January, the state CREDAI (Confederation of Real Estate Developers' Associations of India) submitted a request to the government, emphasizing the need for rate stability in 2023 and suggesting rationalization of stamp duty charges for potential Floor Space Index (FSI).

State CREDAI President Pramod Khairnar emphasized the buoyancy of the market and cautioned against disturbing the trend by increasing RR rates. He proposed rationalizing and charging stamp duty based on the utilized FSI. CREDAI national vice president Sunil Furde echoed this sentiment, highlighting the improving property registrations and revenue generation. As 2024 marks an election year, there is a consensus among industry representatives that the state government should refrain from making changes at present.

In the previous fiscal year 2022-23, the state government had increased RR rates by an average of 8.8%, with a uniform hike of 8.8% for all municipal corporations, excluding Mumbai. In 2017-2018, the rates were raised by 5.9%. Ahead of the Lok Sabha elections, any adjustment to RR rates in Maharashtra after April 1 may require permission from the Election Commission of India, should the code of conduct come into effect by then, as indicated by a revenue official.