CREDAI, realtors say doubling registration fee will dampen resurging public mood after pandemic

Realtors and Confederation of Actual Property Builders’ Associations of India (CREDAI) have opposed the State authorities’s transfer to double the registration charge for property transactions from 1% of the steering worth to 2%, efficient from August 31. They’ve argued that mountain climbing charges just isn’t the reply to make up for the income shortfall and stated this could solely dampen the slowly resurging public temper within the metropolis’s realty market after the pandemic. 

“We’re slowly recovering from the hunch we suffered within the pandemic. However insistence on e-Khata has created a bottleneck, resulting in a fall within the variety of property transactions. There may be already a damaging sentiment available in the market about visitors jams and infrastructural woes within the metropolis, a notion we’re battling to draw buyers. Mountaineering registration charge could push buyers to take a look at different locations,” stated Suresh Hari of CREDAI, Karnataka, including they may petition the State authorities to roll again the hike. 

The Division of Stamps and Registrations has argued that even after the hike, the charge payable for property transactions, now pegged at 7.6% of the steering worth, is corresponding to and decrease than in States in South India. Knowledge reveals that whereas it’s 7.5% in Andhra Pradesh and Telangana, it’s 10% in Kerala and 9% in Tamil Nadu. In a press release issued by the Division on Saturday, it termed the hike in registration charge “rationalisation”. 

Nevertheless, Mr. Suresh Hari countered this arguing that the steering worth for properties is among the many highest in Bengaluru in comparison with different markets in South India. 

“On condition that stamps and registration are one of many few avenues left for the state authorities to boost sources to go well with its wants, following the implementation of the Items and Providers Taxes (GST), stress on the sector has gone up throughout states and likewise in Karnataka as properly,” Ok.R. Ramesh, a property guide and builder stated.

The realty market has been going through a hunch for a number of quarters now within the State, evident in how the Division of Stamps and Registrations has missed a number of income targets. As towards a income goal of ₹26,000 crore for 2024-25, the Division collected solely ₹22,500 crore, and within the first quarter of 2025-26, for which the goal is an formidable ₹28,000 crore, collections have fallen brief by 35%. 

Complaints of registrations held up

A number of realtors additionally complained that registrations have been “blocked” on Saturday, the final day earlier than the hiked charges kicked in from Sunday. “A lot of those that tried to guide slots, whose properties have been to be registered on Saturday confronted hurdles and the prepared reply given was the server of Kaveri 2.0 portal being down,” stated Mr. Ramesh. 

Nevertheless, Mullai Muhilan M.P., Inspector Basic of Registration and Commissioner of Stamps (IGR&CS), stated whereas registrations of properties scheduled for Saturday have been allowed to occur with none adjustments, these attempting to pay the registration charge on Saturday for a later slot when the brand new charges would have kicked in have been stopped. 

In a press release issued on Saturday, the Division of Stamps and Registrations has stated those that have already booked slots for registrations on any day ranging from August 31 however have already paid the charges, “are required to pay the distinction quantity by means of the official portal. The fee should be made utilizing the identical login credentials used earlier. To help candidates, an SMS notification with the mandatory directions shall be despatched on to their registered cellular numbers”, and for “paperwork which have already been submitted and are below verification, the registration charge shall be recalculated and charged on the revised price of two%”.

There are over 850 such property transactions, sources stated.