Everything You Need to Know About Ready Reckoner Rate Pune

The traditional value of any residential property, business property, or land/plot assessed and regulated by the Maharashtra government is called Ready Reckoner Rate.

To assure the accurate valuation of real estate properties, all state governments provide annual statement rates (also known as ready reckoner rates, or ASR) that are area-specific

The absolute minimum price a buyer must pay for a property is the RRR or circle rate. At this minimum rate, the government levies stamp duty and registration costs. If the actual cost of the property exceeds the RRR, stamp duty and registration fees are levied on the excess cost

Circle Rate is the threshold below which no real estate transaction in a region is permitted. On September 12, 2020, the Maharashtra government last increased the ready reckoner rate Pune.

Understanding ready reckoner rates

The ready reckoner rate, also called the circle rate, is a defined minimum sum established by the state governments for a business, residential, or plotting property

The state government notifies the city's registrar or sub-registrar office of this amount so that they can register property transactions appropriately

Once the ready reckoner rate has been determined, there is no possibility of making a smaller payment. Thus the buyer of real estate must pay this sum.

Ready reckoner rate: What makes it essential?

The ready reckoner rate, in addition to the influence of location, production specifics, and property classification into commercial, residential, or mapping categories, is crucial in calculating the total cost of any construction project

The state government makes money off each real estate transaction between a home buyer and a developer by charging a specific stamp duty and registration fee—the ready reckoner rate rises, which increases stamp duty and building fees

In a sense, the ready reckoner rate keeps the real estate market financially balanced and provides potential homebuyers with an indication of the amount of money needed to purchase real estate in a specific area.

Ready reckoner rate in Pune

Pune is one of Maharashtra's most significant cities, and its surrounding areas separating into 19 zones. The ready reckoner rate Pune varies depending on the property's location and the accessibility of basic facilities

Residential property ready reckoner rates in Maharashtra are often lower than those for commercial property. Additionally, it depends on the type of property, such as apartments, single-family homes, or a plot.

The Maharashtra government and the Pune registrar office impose a premium on the ready reckoner rate in consideration of the attractiveness of high-rise apartment floors. The premiums are charged as below:

• No premium up to the 4th floor
• 5% premium for 5-10th floor
• 10% premium for 11-20th floor
• 15% premium for 21-30th floor
• 20% premium for 31st floor and above

On March 8, 2021, a 1% stamp duty exemption was instituted for female-to-female residential property sales. In the event of plots and male co-owners, it is not relevant

Additionally, female buyers are not permitted to resell the home to any male buyers in the next 15 years. They would be liable for paying interest on it, a penalty, and 1% in stamp duty. For the fiscal year 2021–2022, ready reckoner rates remain unchanged.

According to the ready reckoner rate Pune table, the stamp duty percentage is higher than the declared agreement and assessed values. In addition to stamp duty, registration fees are required to cover the costs associated with maintaining registration offices.

Stilt and open parking impact the assessed value when determining the stamp duty. The value of a parking lot that is connected to an apartment is calculated as:

Covered/Stall Parking

(Parking lot area) X (25% of the property's ready reckoner charge per unit area)

Public Parking

Parking lot area X is equal to 40% of the nearby developed land's ready reckoner rate.

How can I determine the ready reckoner rate for 2022–2023?

One needs to follow the below steps to determine the RRR for 2022-2023

• Calculate the property's built-up area and consider several elements, like the number of storeys, the facilities, the construction's age, the size of the plot, and more. The built-up area is regarded as having a higher value than the value of the actual built-up area stated in the property documents and 1.2 times the carpet area of the floor.
• Select the appropriate property type from the list, which includes apartments, houses, shops, commercial units, etc.
• Choose the area's location from the list provided on the registrar's office website list.
• Calculate the minimum assessed value using the following formula based on the current ready reckoner rate:

The Formula for Residential apartments

For new construction and already owned apartments in cooperative housing societies, the total of:

• The property's built-up area in square meters times the appropriate ready reckoner rate for flats in rupees per square meter * (1 + floor rise)
• The number of available parking spaces multiplied by 40% of the zone's developed land's ready reckoner rate.
• Number of covered parking spaces * 25% of the property's appropriate ready reckoner charge per unit area

The Formula for Building Built on Plot

Sum of:

Plot area in square meters times the applicable ready reckoner rate in rupees per square meter for apartments in that location times 1.25.

Stamp duty is charged as per Schedule I of the Maharashtra Stamp Act, on the type of instrument and amount mentioned in it, the one which is high under the article, and stamp duty is collected on the document by the Collector of Stamps and Registration Department

Annual Statement Rates (ASR), also known as Ready Reckoner, are the immovable property fare rates based on which market value is calculated.

The Yearly Statement Rate, which varies by locality in a state, such as Urban Area, Influence Area, and Rural Areas, is determined by the state government on an annual basis. Local authorities set ASR rates in areas under their administration, including the Municipal Corporation, Municipal Council, Cantonment Board, Nagar Panchayat, and Gram Panchayat.

Ready reckoner rate determinants in Pune

In different parts of Pune, there are different RRR/Circle rates. The Maharashtra government decides the ready reckoner rate Pune for 2022–23 based on the following criteria:

• Based on the market value of the place and the local amenities, circle rates vary between localities or areas.
• The Pune administration has classified the properties in Pune and its suburbs into 19 zones and a further 221 subzones. This class mainly pertains to major thoroughfares and rail lines (west to east).
• The Maharashtra government often assigns higher ready reckoner rates to commercial properties and lower ready reckoner rates to residential homes.
• Availability ready reckoner rate Pune also varies regarding different kinds of real estate. Independent homes and plots have a distinct registration value than condos and apartments.
• The type of parking (stilt or open) is considered when determining an assessed value for the payment of stamp duty.
• A surcharge for the ready reckoner rate, The Maharashtra government and the Pune registrar office charge Pune for apartments that are located on higher floors.

To Conclude:

Through the sub-registrar office, the government notifies property transactions at a minimum rate known as the "Ready Reckoner Rate"

In some states, the Ready Reckoner Rate (RRR) is called Circle Rate. In Maharashtra, RRR assists people in determining the minimal worth of their property and selling a house for less than the RRR is nearly hard.

Regardless of whether the property's market worth is higher or lower, people in Maharashtra must register their properties using these rates

Stamp duty and registration fees are calculated using the property's ready reckoner rates. If the market value of the chosen property is less than the ready reckoner rate, the buyer must pay additional stamp duty and registration costs to finalise the transaction

For transactions that fall below the ready reckoner pricing of a certain property, agents can file a complaint with RERA Maharashtra

Maharashtra has increased its ready reckoner rate Pune as of March 31, 2022. Mumbai's ready reckoner rate, though, won't change.