Karnataka Doubles Property Registration Fee: Impact and Reactions
Starting from August 31, 2025, the registration fee for properties in Karnataka will double from 1% to 2%. This move, aimed at boosting government revenue, has sparked mixed reactions from real estate experts and property owners alike.
Property RegistrationKarnatakaReal EstateRegistration FeeGovernment RevenueReal EstateAug 31, 2025
Various sub-registrar offices in the state had halted operations from 4 pm on Friday due to maintenance works. Services resumed from 4 pm on Saturday, but the number of people who came was lower than usual as many were under the impression that the offices close on Saturday afternoons.
Sources in the stamps and registration offices explained that the halt in operations was necessary to make revisions to the server as per the new notifications. One sub-registrar noted that there was a debate among officials about whether to shut operations, as it could be seen as denying people their rights. However, at many places, services were hindered, leading to a lull in property registrations from Friday evening to Saturday evening.
Manandi Suresh, a real estate expert from the Federation of Karnataka Chambers of Commerce and Industry (FKCCI), provided an example to illustrate the impact of the fee increase. He said, “The registration cost of property depends on the guidance value and market value. For instance, a flat in most areas of Bengaluru costs around Rs 1 crore. The registration cost, which was Rs 1 lakh, will now increase to Rs 2 lakh.” Suresh added that lease/rental agreements, advance registration charges, and even bank registration charges will also increase from 1% to 2%.
Munish Moudgil defended the decision, stating that the registration fee in Karnataka is lower than in other states. In Tamil Nadu, Kerala, and Telangana (rural areas), the registration fee is 2%. The overall registration cost in Karnataka is 6.65%, while in Tamil Nadu it is 9%, Kerala 10%, and Andhra Pradesh and Telangana 7.5%.
Mullai Muhilan, MP, Inspector General of Registration, and Commissioner of Stamps and Registration, mentioned that the last revision in registration fees was made in 2013, when it was reduced from 2% to 1%. He stated, “Now it has been brought back to its old rates, and the other slabs have not been changed.”
However, the decision has been met with criticism from various stakeholders. FKCCI Chairman G Balakrishna expressed concerns, saying, “The hike in registration fee will have an adverse impact on the state’s development. Though the government claims it is just 1%, in cash, it is very high. Additionally, while there might not be an immediate impact, a subsequent dip in registrations will be seen as people start to compare with other states. The present cost of registering a property in Karnataka will now increase from 6.65% to 7.65%, which is a significant impact on property owners.”
Vikram Rai, president of the Bangalore Apartments Federation, highlighted the cumulative effect of various charges on property owners. He said, “Now, a property owner pays 40-45% above the property cost. This includes taxes, cess, registration fee, and permissions. This is nearly half of the property cost, and any additional charge will further burden property owners. The high real estate value in Bengaluru and this hike will also provide an incentive for black transactions as people will start to undervalue their properties to save on charges.”
Swathi B, a property owner, shared her concerns, stating, “The government has already increased water tariffs, electricity charges, fire NOC fees, milk charges, and commercial vehicle registration costs. We also have to pay to convert khata documents to e-khata. Doubling the registration cost will further escalate the already high property charges in Bengaluru.”
Despite the criticism, the state government remains committed to the increase, citing the need to align Karnataka’s registration fees with those of other states and to boost revenue. The impact of this decision on the real estate market and property owners in Karnataka will be closely monitored in the coming months.
Frequently Asked Questions
When did the registration fee for properties in Karnataka increase?
The registration fee for properties in Karnataka increased from 1% to 2% starting August 31, 2025.
How much additional revenue is the government expecting from this increase?
The state government expects to generate an additional revenue of around Rs 3,000 crore from August 31, 2025, to March 31, 2026.
What is the current registration cost in Karnataka compared to other states?
The overall registration cost in Karnataka is 6.65%, while in Tamil Nadu it is 9%, Kerala 10%, and Andhra Pradesh and Telangana 7.5%.
Why did the government decide to increase the registration fee?
The government decided to increase the registration fee to align Karnataka’s rates with those of other states and to boost revenue.
What are the potential impacts of this fee increase on property owners and the real estate market?
The fee increase could lead to higher property registration costs, potentially discouraging property transactions and encouraging black transactions as people may undervalue their properties to save on charges.
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