NASHIK: The Confederation of Real Estate Developers Association of India (CREDAI), Nashik, is awaiting a rollback of the hike in ready-reckoner rates announced by the Maharashtra government from January 1, 2014. The organization has expressed its disappointment, with the hiked rates remaining unchaged after an assurance from the state government.
The state government revises the RR rates every year on January 1. This year too the state government increased the rates of land, residential and commercial properties in the range of 1.62 to 48.93% in different parts of Nashik, despite the recession in the real estate sector.
As per the new revised RR rates effective from January 1, the land or plot rates have been increased by 10-48.93%, while the rates of residential properties like flats and row houses have been hiked by 18.04-34.36%. The rates for commercial properties like shops and offices have been increased by 1.62-30.5%.
"Despite the recession for the past two years, the state government had increased the ready-reckoner rates at large. We had met state revenue minister Balasaheb Thorat two months back, urging him for a rollback in the rates, but in vain. In fact, there was no need to increase RR rates in the past two years as well. However, the state government is imposing around 20% hike in the rates every year to earn revenue. This policy of the government has disappointed builders and developers. The property rates in the city have gone beyond the purchasing capacity of common people due to the continuous hike in RR rates for the past few years," Kiran Chavan, outgoing president of CREDAI, Nashik, told TOI on Saturday.
"Real estate prices have gone beyond the buying capacity of people. The state government increased the ready-reckoner rates despite the phase of recession. The hike in ready-reckoner rates have led to reduction in real estate deals, with consumers not prepared to buying property due to the excessive hike. The RR rates need to be rolled back to previous levels and the government should not increase the rates for the next two years at least," said Nilesh Chavan, president of the Indian Institute of Architects (IIA), Nashik Centre.