The rise in the Ready Reckoner (RR) rates in all prime locations of the city as well as outskirts is set to hit the consumers hard.
A day following the state government increased the RR rates by an average 3. 64 % in the town, builders on April 2 said they would have no scope to absorb any further increase in costs.
The developers added that they would be compelled to pass on the increased development and high quality charges, as well as the compliance costs that will come into results following implementation of Real Estate Regulatory Authority (RERA) rules, onto the buyers.
Shantilal Kataria, president of the Confederation of Real estate Developer’s in pune Associations of India’s (Credai) Maharashtra chapter, said the overall increase of the RR rates will affect the buying ability.
The president (Credai) Maharashtra chapter mentioned that the current increase also means an increase in monthly premiums, development charges and labor cess. It really is unlikely that the builders will discuss these costs.
A senior official stated that you will find a direct connection between the RR land rates and the premium, development charges payable for sanctioning building plans and the stamp duty on the land purchase. The builders would be affected, as the additional initial cost will reduce the quantity of projects that can be launched. This can further impact the government’s housing-for-all goal.
Listen to what different stake holders have to say-
- A consultant, who had been planning to invest in flat in Pune within an upmarket area, said that she is going to wait right up until next year. She further added that the authorities have termed the increase as ‘slight’. But the rates in the city’s core areas have seen a 10-12% rise. The developers are guaranteed to increase property prices.
- According to a developer Sachin Kulkarni, who is into affordable housing projects, said that seven major states have waived stamp duty on affordable projects in pune. Maharashtra acquired the commitment to doing the same. But now land and building rates have been hiked by more than 12% on the outskirts of Pune city. It was from these areas that the affordable houses are coming up in a major way.
The Implementation of Rera is around the corner and this, too, will significantly raise the developers’ cost composition. As of now the immediate impact of the RR is a rise in property rates in Pune.