Ready reckoner rate hiked 20% for north east Mumbai

MUMBAI: Realty developers in Mumbai may have to shell out up to 20% more for land purchases in eastern suburbs of Mumbai given the state government’s decision to revise Ready Reckoner rates including land rates.

Out of total 180 localities that fall under Kurla zone, land rates of nearly 78 zones have been increased by 10% to 25%. Some of the key localities falling under this zone include Kurla, Ghatkopar, Vikhroli, Kanjur Marg, Mulund, Chembur, Deonar, Mankhurd, Chandivali, Bhandup and Turbhe.

“With rise in land cost, premium for deficiency space, fungible FSI and for staircases, passages and lift areas will also move upward by the same amount and all of this will push the property prices higher. Current sluggish market scenario is unlikely to support any such price rise,” said Sunit Gupta, property appraiser operating in Mumbai.

According to property valuation experts, the percentage rise in land rate is higher than the increase in residential rate in nearly 19 localities of Kurla zone.

Ready-reckoner rates are assessments of property value by the state government on the basis of which stamp duty and registration charges are paid. The government usually revises these rates every year based on average of actual sale value of residential and commercial properties in various zones.

However, valuation experts are surprised as to how the land rates have been increased more than the rates of residential and commercial property in the same zone.

Reckoner rates for residential properties are based on land cost and construction expenses including cost of transferable development rights to be purchased, premiums paid to civic authority for floor space index. It also includes development charges, financial costs and developers’ profit margin.

Credits ET Realty

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