Karnataka Doubles Property Registration Fee: Impact on Home Buyers and Real Estate
The Karnataka government has announced a hike in property registration fees from 1% to 2% of the property value, effective from August 31, 2025. This move is expected to rationalize administrative processes and improve service delivery, but it has faced criticism from the opposition.
Property RegistrationReal EstateKarnatakaGovernmentStamp DutyReal Estate NewsAug 30, 2025
Despite the hike, the state government has asserted that the land registration cost in Karnataka remains the lowest in South India. According to the Stamps and Registration Department, “Karnataka has one of the lowest Stamp Duty and Registration Fees on immovable property transactions when compared to its neighbours and other states. The government has revised the registration fee from 1% to 2%, with effect from 31st August 2025.”
The government stated that the measure is aimed at rationalizing, strengthening administrative processes, and ensuring better service delivery. This move comes as a corrective measure to address the lower stamp duty and registration collections, which are a significant component of state revenue and have not grown substantially over the last two fiscal years.
With the hike in the registration fee, the total cost of property registrations in Karnataka will now be 7.5 per cent of the property value, including a 5 per cent stamp duty and other cesses at 0.6/0.65 per cent. This is lower than the costs in Kerala (10 per cent), Tamil Nadu (9 per cent), and on par with Telangana and Andhra Pradesh (7.5 per cent).
The BJP has strongly criticized the hike, with Leader of Opposition R Ashok stating that this is the latest in a series of price increases in Karnataka. “After hiking prices of water, milk, power, petrol, diesel, bus fares, metro fare, property tax, and every essential service, now they have targeted home buyers and the real estate sector by doubling registration fees,” Ashok said.
BJP state president B Y Vijayendra also condemned the action on social media, saying, “The government, which had already shattered the dreams of people of owning homes by disproportionately increasing stamp duty, has now resorted to outright robbery by raising the registration fee from 1 percent to 2 percent.”
The Stamps and Registration Department has clarified that land registration applicants with prior appointments or those yet to obtain an appointment must pay the difference amount through the official portal. Additionally, for applications under verification, the registration fee will be recalculated and charged at the revised rate of 2 per cent.
The state government has experienced a shortfall in stamp duty and registration revenues, achieving ₹22,500 crore in 2024-25 against a target of ₹26,000 crore. In the current fiscal year, with a target of ₹28,000 crore, the first quarter has seen a 35 per cent shortfall.
This hike in property registration fees is expected to have a significant impact on home buyers and the real estate sector in Karnataka, as it adds to the overall cost of property transactions. However, the government remains committed to improving administrative processes and ensuring better service delivery, despite the criticism.
Frequently Asked Questions
When is the new property registration fee effective?
The new property registration fee of 2% is effective from August 31, 2025.
How does Karnataka's property registration cost compare to other states in South India?
Karnataka's property registration cost remains the lowest in South India, at 7.5% of the property value, which is lower than Kerala (10%) and Tamil Nadu (9%).
What is the total cost of property registration in Karnataka after the hike?
The total cost of property registration in Karnataka will now be 7.5% of the property value, including a 5% stamp duty and other cesses at 0.6/0.65%.
Why did the Karnataka government increase the property registration fee?
The government increased the property registration fee to rationalize administrative processes, strengthen service delivery, and address the shortfall in stamp duty and registration revenues.
How can applicants with prior appointments pay the difference amount?
Applicants with prior appointments or those yet to obtain an appointment must pay the difference amount through the official portal.
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