Recently, during a webinar held by NAREDCO in, former Chief Minister of Maharashtra, Devendra Fadanvis proposed that the government reduce the ready reckoner rate by about 40% for the next two years in order to give a boost to the Indian real estate sector, which has been severely impacted by the wave of COVID-19, among other markets that are the backbone of the Indian economy.
Ready Reckoner Rate (RRR), also known as Circle Rate, is the minimum price at which a certain property is to be registered in case of its transfer of ownership. These rates may differ even within localities and areas based on whether they are residential or commercial spaces, their location, size of the plot, and other various factors.. These rates give us an idea of the likely prices of properties in various areas.
Reducing the Ready Reckoner Rate or bringing it in line with the already existing prices can benefit both buyers and sellers, eventually helping the market and economy consequently.
While moderating the webinar, Niranjan Hiranandani, national president, NAREDCO, mentioned that in doing so, the reduced ready reckoner rate will help to boost the demand for properties throughout the nation.
This move, in addition to the aid and support the government has extended to the real estate market such as extension of project deadlines, funding, relief of loans etc., will give rise to a sustainable industry plan and cause a much smaller dent as compared to the earliest impact of the pandemic. The sector is expected to contribute 13 percent GDP of the country by the year 2025 through such government aids and relaxations on projects. These measures have acted as temporary relief packages in the interest of home buyers, investors, and stakeholders.
With a maintained level of demand in the real estate sector, the economy can focus on the further plan of action while the buyers and sellers alike, reap rewards of the reduced Circle Rates.