Last week the Maharashtra state government announced a sharp hike in ready reckoner (RR) rates for projects in the state. The RR rates have been increased by 8.8%, with effect from April 1 in some municipality areas. Mumbai city areas have seen a much lesser revision, though. This could lead to a sharp increase by INR 400-600 in construction costs- along with rising commodities cost which has seen a nearly near 40% jump over the last year. For developers, this will be an additional cost after the increased prices of key commodities like steel and cement. They will certainly pass on some of it to buyers. Also, there may be a stamp duty, the rates of which will be decided on individual basis, and since the FSI premiums are linked to RR rates, the increase in RR rates will result in an increase in premiums as well. Reports and sources say that there is also expected the proposed metro CESS of 1%. If it is levied, that would increase the prices of homes even more.
Source: News
