How Builders in Pune Are Responding to the Ready Reckoner?

Builders in Pune have stated to the concerned authorities that they have no choice but to pass on the higher Ready Reckoner rates to consumers since according to builders, their capacity to absorb higher rates has been saturated. The RR rates were raised in the prime locations in Pune and in the outskirts of the city and their impact upon consumers will be harsh. Ready Reckoner rates were raised by 3.64 percent in the first week of this month.

What Consumers Have to Pay?

Builders and developers in Pune have stated that they would have to pass on the premium charges as well as the increased development charges to consumers. Furthermore once the compliance costs come into effect after the RERA is implemented its cost will also be passed on to buyers by builders.

Experts Corner

Real estate insiders and experts employed with the Confederation of real estate

Developers Association in the organizations Pune chapter have stated that the overall increase in the RR will have an impact upon the buying power of consumers; in other words the buying power of consumers will be diminished as builders pass costs on to buyers.

What the CREDAI Has to Say?

The president of the Pune CREDAI has stated that all three costs, namely, the RR land rates and premiums, development charges that are payable for sanctioning building plan, and the stamp duty on land are directly related. It has also been stated by the president of the CREDAI that developers would be affected by the impact of these extra costs and would likely reduce the number of new projects they commence in Pune. Furthermore the President of the Pune Chapter of the CREDAI has stated that if builders in Pune are deterred from taking on more projects due to the costs of the RR it may get in the way of the government's goal to create housing for all.

The Ground Reality

There are numerous examples of buyers who had been eager to purchase a property in Pune but have delayed their plans since prices in the core realty markets of Pune have risen by nearly 10 to 12 percent and buyers believe that builders in Pune are also bound to raise prices.