Areas on outskirts continue to fetch higher RR rates

Jan 2, 2013

Areas on outskirts continue

to fetch higher RR rates

n Agricultural land in Besa and Beltarodi see rise of around 25 per cent in ready reckoner rates compared to previous year

n Most of the city areas witness rise in rates between 15 to 18 per cent on an average

Staff Reporter

Areas along Wardha Road or in the close vicinity of the city continue to fetch better prices for land or constructed property, the revised rates of ready reckoner (RR) reveal. The new rates released on Tuesday show that compared to the State average of over 20 per cent rise in most of the zones, rise in RR rates in Nagpur city and district is a modest 15 to 18 per cent on an average.

As per the new RR rates, Besa and Beltarodi continue to witness maximum rise. The rise in RR rate of agricultural land is 26.66 per cent as compared to previous year in case of Besa, which has seen tremendous rise in sale-purchase of land. With new flat schemes adorning the skyline in this area at a fast pace, rise in RR rate of flat in this area has seen a rise of 23.53 per cent. In Beltarodi also, rise in RR rates for agricultural land is 24.8 per cent, and that in rate for flat is 24.24 per cent.

Some core areas like Sitabuldi and Gadga (Maharajbag Square to Law College Square and nearby areas) have registered an impressive 30 per cent rise in RR rates. Even the areas like Rahate Colony to Laxmi Nagar, Panchsheel Square to Jhansi Rani Square, Ramdaspeth, Dhantoli have maintained a rise of 25 per cent in RR rates. Areas like Shivaji Nagar, Mahal, Central Avenue, Ajni Square, the rise is a modest between 15 per cent and 20 per cent.

Overall trend, according to officials of Department of Registration and Stamps, shows that buyers are showing more interest in buying land in areas on the outskirts or outside the core area. One of the main reasons is higher prices in core areas of the city. For builders and developers, prices in core area are much higher. As a result, they also are showing interest in bringing up new schemes in areas outside the core area but preferably within limits of municipal corporation. As a result, the RR rates for agricultural land on the outskirts has registered a rise of over 25 per cent in many cases. As far as flats are concerned, RR rates have not seen more than 15 per cent rise in such areas barring Besa and Beltarodi. The main reason is distance from core business and work areas in the city. With buyers working in MIDC area or commercial establishments in these areas showing interest, property prices in areas along Hingna Road, Amravati Road have registered a good rise.

Ready Reckoner provides minimum rate at which stamp duty has to be paid by purchaser of a property, irrespective of the price at which deal is struck. Till a few years back, there was a huge difference between actual market rates of properties and RR rates. Taking advantage of this, purchasers and sellers entered into sale deed quoting deal-price at RR rates for different rates. This resulted in the Government not getting desired revenue through stamp duty. Realising this, the Government decided to bring RR rates closer to market rates for respective areas. In past five to six years, said the officials of Town Planning and Assessment Department, the gap between RR rates and market rates has been reduced up to 30 per cent.

Nagpur city is divided into 701 zones for calculating stamp duty payable from prospective buyers. Every one of these zones has registered a rise in RR rates. Of these, 148 zones have registered a rise up to 10 per cent of RR rates in previous year, 438 have seen rise between 11 and 20 per cent, and 115 have recorded rise of over 20 per cent. The zones up to 10 per cent rise include those bordering existing limits of municipal corporation like Jaitala, Wathoda, Nara, Zingabai Takli, Pardi, Hudkeshwar, Chinchbhuvan. Areas on the outskirts of the city like Khamla, Sakkardara etc are among 438 zones to have recorded rise in RR rates between 11 to 20%. Among 115 zones that have seen hike of over 20 per cent in RR rates include core areas of the city like Ramdaspeth, Dhantoli, Dharampeth, Shankar Nagar, Civil Lines, Mahal, Gandhibag, Itwari.