Micro-Zoning, RR proposal: A reform opportunity

Mumbai: The government’s proposed introduction of micro-zoning and differentiated Ready Reckoner (RR) rates marks a significant shift in the way property valuations are determined across the state. The initiative, which seeks to assign distinct RR rates to high-rise buildings, slums, chawls and redeveloped properties within the same locality, has largely been welcomed by the real estate sector. Industry stakeholders, however, caution that the reform’s effectiveness will depend less on its...

min read

Micro-Zoning, RR proposal: A reform opportunity

Mumbai: The government’s proposed introduction of micro-zoning and differentiated Ready Reckoner (RR) rates marks a significant shift in the way property valuations are determined across the state. The initiative, which seeks to assign distinct RR rates to high-rise buildings, slums, chawls and redeveloped properties within the same locality, has largely been welcomed by the real estate sector. Industry stakeholders, however, caution that the reform’s effectiveness will depend less on its intent and more on the framework governing its implementation. The proposal comes at a time when property markets in major urban centres, particularly Mumbai Metropolitan Region (MMR), are witnessing increasingly diverse development patterns within the same neighbourhoods. Experts argue that uniform RR rates often fail to capture the substantial variations in infrastructure quality, redevelopment status, accessibility and market demand that exist even within small geographical pockets. Real estate professionals believe that a micro-zoning approach could help bridge the gap between official property valuations and actual market realities. More accurate valuation mechanisms can improve transparency in transactions, provide a fairer basis for stamp duty calculations and create a more nuanced framework for urban planning. Experts’ Comments Kamlesh Thakur, President, NAREDCO Maharashtra and Co-Founder & Managing Director, Srishti Group, believes the concept has merit but warns that the execution framework will determine whether the reform succeeds or creates fresh challenges. “The concept of micro-zoning and differentiated Ready Reckoner rates has the potential to make property valuation more reflective of local market realities and development potential. However, its success will depend entirely on the framework adopted for implementation. Unless there is a clear, transparent and objective policy with well-defined parameters, the introduction of micro-zoning could lead to increased discretion at the administrative level, resulting in uncertainty and inconsistent outcomes,” he said. According to Thakur, valuation systems that allow excessive room for subjective interpretation can generate disputes, create inconsistencies in assessments and undermine business confidence. His concerns reflect a broader industry apprehension that redevelopment projects—already burdened by lengthy approval processes and rising costs—could face additional uncertainty if valuation criteria vary across administrative jurisdictions. Kaushal Agarwal, Chairman, The Guardians Real Estate Advisory, views the proposal as a logical evolution of property valuation practices, particularly in rapidly transforming urban markets. “The move towards differentiated Ready Reckoner rates through micro-zoning is a progressive step, as property values can vary significantly within the same locality depending on factors such as infrastructure, accessibility, building quality and surrounding development. If implemented effectively, it has the potential to make property valuations more realistic and aligned with actual market dynamics,” he said. Transparency, Methodology At the same time, Agarwal emphasized that transparency and data quality will be critical to ensuring credibility. “However, the success of this initiative will depend on the transparency of the methodology, the quality of data used, and the consistency of its application across micro-markets. Buyers, investors, and developers value clarity and predictability in valuation mechanisms. A well-defined and publicly accessible framework will be essential to avoid ambiguity, strengthen market confidence, and ensure that the new system delivers greater accuracy without creating uncertainty in transaction pricing or investment decisions,” he noted. Uniformly Implemented Echoing similar concerns, Dhruman Shah, Promoter, Ariha Group, said the government must ensure that the system remains easy to understand and uniformly implemented. “The move towards micro-zoning reflects an effort to modernize property valuation and make it more representative of actual market conditions. However, it is important that the system remains simple, transparent and uniformly enforced across regions. If multiple layers of interpretation emerge during implementation, it could lead to disputes and delays, particularly for redevelopment projects that already involve complex approval processes. Industry consultation at every stage will help create a practical and effective framework,” Shah said. As the state explores one of the most significant changes to its property valuation mechanism in recent years, the industry appears broadly supportive of the objective. Yet the consensus remains clear: the success of micro-zoning will depend on transparency, consistency and stakeholder consultation. Without these safeguards, a reform intended to improve valuation accuracy could inadvertently introduce new layers of uncertainty into an already complex real estate ecosystem.

World ‘flying’ older planes: EIR’s Report

Quaid Najmi
Apr 27
3 min read

Mumbai: Faced by the largest backlog of aircraft orders ever in global commercial aviation history, the world is flying airplanes that are much older than expected and for longer periods, according to a report by Eureka Institutional Research (EIR).

Step on a flight anywhere in the world and the chance is the aircraft is much older, possibly one that may be on its last legs – creating a curious scenario for all stakeholders.

Though airlines are desperately waiting for new aircraft that have been ordered, these are just not delivered fast enough. The result is despite the demand for flying soaring, aircraft fleets are aging at a quick pace, with other accompanying problems.

As per the EIR report released on Saturday, currently, the global order book shows a demand for a staggering 17,175 aircraft of different sizes and configurations, with just three countries accounting for the lion’s share.

They are the world’s top three populated countries and crucial economies - India, China and the USA. While USA tops the list with 2,988 aircraft orders (17.4 pc), India is next with 1,940 orders (11.3 pc) followed by China with 1615 orders (9.4 pc).

Complicating the order pileup is the fleet replacement need that exists independent of traffic growth. The average age of a global commercial aircraft fleet has jumped – from the pre-Pandemic baseline of 12.9 years in 2019 to 15.1 years in 2026.

This 2.2-year increase of an aircraft age in seven years is billed as the highest notched in 112-year-old history of commercial aviation that took wings in 1914.

India’s Backlog

India’s order backlog has forced its active fleet of 815 aircraft, operated by multiple private players, to operate at an average of 123 pc of its 2019 peak flight hours – next only to China’s 131 pc globally, as per the EIR study.

With a passenger demand of 245 million per annum or 151,010 physical seats, India has already reached the saturation point and needs as many new aircraft as its current fleet strength, said the EIR study, citing DGCA and Euresearch data.

Accordingly, nearly half of all aircraft that are expected to be delivered over the next two decades world over, won’t help expand fleets, but merely replace the aged jets, as the already-stretched major aircraft manufacturers struggle to fulfil their order books of over 17,000 new flying machines.

Though the average age of 15.1 may not sound alarming as aircraft are built to last, but after the 10/12-year mark, the planes have to undergo mandatory heavy maintenance checks that are not only time-consuming but expensive.

As the aircraft age more, these checks become frequent and more invasive as engines require periodic overhauls, or parts wear out faster and the downtime increases – effectively compelling the airlines to pour more money to keep their older planes in the skies rather than invest in ordering sleek new and more efficient aircraft.

Fliers Hit

The fliers too are directly hit by this scenario. As older planes are difficult to maintain and new aircraft deliveries delayed, the available seats cannot cope up with the demand, and hence the passengers have no options but to shell out more per seat.

For emerging economies like India or China which are experiencing a travel boom with the middle-class taking to the skies more often, the passenger growth figures are surging in double-digits, but are far outpaced by the availability of number of seats.

Aviation experts caution that the world is entering a phase where aging aircraft, delayed replacements and growing demand for flying could continue to coexist for years – entailing higher ticket fares and packed flights for passengers and narrower profit margins and growing operation strain for the airlines.

India’s aircraft order diary is heavy

The Air India Group comprising Air India, Air India Express and Vistara has an order backlog of 540 aircraft, with deliveries likely to start only by 2032.

IndiGo’s legacy orders of 480 aircraft will start getting delivered from 2030, and IndiGo’s mega-order of 500 aircraft (2023) is slated for delivery between 2030-2035.

Akasa Air’s order of 200 aircraft shall be delivered 2032 onwards which will boost its UDAN expansion; and all other airlines with a total order of 220 aircraft can expect delivery till 2030.