Hike in ready reckoner rates is anti middle class: CREDAI Pune
Almost 50% of projects in Pune to be impacted by this increase
Jan 07, 2014
Source : Business Standard


PUNE: The Confederation of Real Estate Developers' Association of India (CREDAI) Pune and Maharashtra termed the recent changes to the ready reckoner by the State Government as anti-middle class.

In a press meet in Pune today, the association asked the government to roll back these increases and leave the 2013 ready reckoner rates and valuation foot notes untouched on account of the current market conditions.

"The government says that the increase in the ready reckoner rates is between 5-10 per cent is untrue. Because in some areas this increase is almost 20 per cent. But more importantly, this time the ready reckoner has added some foot-notes about the way the calculations of land value is done. In some cases it is upwards of 40 per cent," said Rohit Gera, VP CREDAI.

According to Gera this increase will impact almost 50 per cent of projects in the city irrespective of the fact whether these are affordable housing projects or otherwise.

“The ready reckoner was calculated by taking the average rate of any locality. The definition of average means, some prices will be below and some above the average. The system is so anti affordable housing that the lower the flat price, the higher the rate of stamp duty. The lower priced homes will be even more unaffordable for the common man. If affordability is affected, this will be a disincentive for developers to build these homes,” said CREDAI Pune Metro President Hemant Naiknavare.

In addition to increases in the basic ready reckoner rates, the new changes will also have impact on other things like valuations and other taxes. “The government has changed the basis of valuation of land – where there is a potential to incorporate TDR on the land, the stamp duty to be paid is increased by 40 per cent. For projects which are more than one acre, where amenities such as a club house or pool or gym are provided, the valuation is increased by 15 per cent.  Further, height based increase in stamp duty is also seen an increase of 5 to 15 per cent depending on the height of the building. JV agreements between the developers or with the Land owners also attracts huge stamp duty,” said CREDAI. 

So far CREDAI is focusing on creating awareness among the buyers. "Post this we will take this issue with the revenue minister and the Chief Minister. If this does not work, we may have to look at some legal course as well," added Gera.




Latest Realty News

Mumbai office realty: Western suburbs new growth centre
Jan 07, 2014
MUMBAI: Looking back on 2013, the prevailing attitude among businesses toward the economy was “wait and see. The decision to take up more real estate office space was mostly put on hold; or companies aggressively looked to bring down their costs. Corporates put their investment decisions on hold, waiting to see how the economic scenario unfolds especially in light of the forth-coming national elections.
Operation township
Jan 07, 2014
MUMBAI: Till recently, buying a property called for some painful compromises. Budget restrictions meant you could only buy in specific residential areas, regardless of whether there were educational institutions, playgrounds, hospitals, shopping centres, connectivity to your place of work, or entertainment hubs in the vicinity, apart from availability and reliability of utilities like power and water. Real estate players were quick to recognise this and come up with a creative solution—townships
12% drop in new residential project launches in 2013 as over last year
Jan 07, 2014
MUMBAI: There has been a drop of 12% in new residential project launches in 2013 as over last year, a latest report from international property consultants Cushman & Wakefield says. The total estimated unit launches were recorded at 172,500 units across major eight cities of India with Bengaluru recording the largest number of units launched recording a rise 15%. Chennai on the other hand saw the sharpest decline in launches of new residential units which represented a drop of 39% over last year
City property owners get relief from new tax regime, for now
Jan 07, 2014
MUMBAI: Property owners in Mumbai have received interim relief from a new capital value-based property tax regime that may increase taxes by up to 300 per cent, with the Bombay High Court intervening in the matter.
Slow economy makes time right to buy property
Jan 07, 2014
MUMBAI: The Indian economy has had another tough year. Inflation went as high as 7.52 per cent, job opportunities reduced significantly across industries, the rupee saw steady erosion against the US dollar and market sentiments reached what was possibly their lowest point ever. And yet, things could be worse.
Real estate sector: Growth starting, but no bull-run yet
Jan 07, 2014
MUMBAI: The year 2013 was a year of survival for the real estate sector, but expectations are now high among developers and analysts. The industry is pinning hopes on a mid-year turnaround after the General Elections, it is not likely to materialise given the time lag for policy implementation.
New RR rates hike cost of old flats in Mumbai too
Jan 06, 2014
MUMBAI: If you choose to buy a flat in an old building today, you won’t be able to avail of the full 30% depreciation in the property‘s value. The up to 20% hike in ready reckoner (RR) rates for properties this year has lowered the depreciation benefit for flats in 20-year-old buildings to merely 2% to 11%. As a result, stamp duty to be paid on new and old flats will no longer vary substantially.
Koregaon Park realty tops rate chart in Pune
Jan 06, 2014
PUNE: The rise in ready reckoner rates for 2014 may have dropped compared to 2013, but the growth story for some city areas remains robust. The rates for residential areas have remained high for Koregaon Park, Erandawane, Shivajinagar, Kothrud and Kalyaninagar. In Pimpri Chinchwad municipal corporation limit, areas including Pimple Gurav, Pimple Saudagar, Wakad and Pimple Nilakh have registered higher rates. Interestingly, apart from fringe areas that are recording growth, there is much activity
PMC may not hike property tax next fiscal
Jan 06, 2014
PUNE: Chances are that citizens will not be burdened with an increase in property tax in the next financial year. The civic administration has submitted a proposal to the standing committee, suggesting that the levy should not be hiked.
No choice but to pass on hike to buyers: Pune builders
Jan 06, 2014
PUNE: The overall rise in the ready reckoner (RR) rates for various parts of the city and suburban areas will add to the financial burden of prospective home buyers, real estate developers said.

Latest Realty News Of State

Realty Talk's