Karnataka Doubles Property Registration Fees: What You Need to Know
Starting from August 31, 2025, the registration fees for properties in Karnataka will double from 1% to 2%. This move, aimed at boosting state revenue, has raised concerns among real estate experts and property owners.
Property RegistrationReal EstateKarnatakaGovernment RevenueProperty CostsReal Estate NewsAug 31, 2025
Interestingly, various sub-registrar offices in the state had halted operations from 4 pm on Friday, August 30, citing maintenance works. Services in most of these offices resumed at 4 pm on Saturday, August 31. Sources in the stamps and registration offices explained that the shutdown was necessary to implement the revisions as per the new notifications. However, this caused 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. “The registration cost of a property depends on the guidance value and market value. For instance, a flat in most areas of Bengaluru costs Rs one crore. The registration cost, which was Rs 1 lakh, will now increase to Rs 2 lakh,” he explained. He further noted that lease/rental agreements, advance registration charges, and even bank registration charges will also rise from 1% to 2%.
Munish Moudgil, Principal Secretary of the Revenue Department, justified the increase by pointing out that Karnataka's registration fee is lower than that of other states. For example, the registration fee is 2% in Tamil Nadu, Kerala, and Telangana (rural). The overall registration cost in Karnataka is also relatively low compared to other states. It is 6.65% in Karnataka, while in Tamil Nadu it is 9%, Kerala 10%, and Andhra Pradesh and Telangana 7.5%.
However, the decision has been met with criticism from various quarters. G Balakrishna, Chairman of FKCCI, expressed concern over the potential adverse impact on the state's development. “The hike in registration fees, though only 1%, represents a significant financial burden in cash. This will deter property registrations and lead to comparisons with other states where the cost is lower. The present cost of registering a property in Karnataka will now increase from 6.65% to 7.65%, which is a substantial increase for property owners,” he stated.
Vikram Rai, President of the Bangalore Apartments Federation, highlighted the cumulative effect of various charges on property owners. “Currently, property owners pay 40-45% above the property cost due to various charges such as taxes, cess, registration fees, and permissions. This hike will only exacerbate the issue, leading to a higher overall cost and potentially encouraging black market transactions as people undervalue their properties to save on charges,” he noted.
Swathi B, a property owner, shared her concerns about the cumulative financial burden. “The government has already increased water tariffs, electricity charges, fire NOC fees, milk charges, and commercial vehicle registration costs. The additional burden of doubling the registration fee will further escalate the already high property charges in Bengaluru,” she said.
The state government, however, maintains that the last revision in registration fees was made in 2013, when the fee was reduced from 2% to 1%. The current move is seen as a return to the previous rates, with no changes to other slabs. Despite the justification, the impact on the real estate market and property owners remains a topic of debate and concern.
Frequently Asked Questions
When does the new registration fee take effect?
The new registration fee for properties in Karnataka takes effect from August 31, 2025.
How much will the registration fee increase by?
The registration fee will increase from 1% to 2% of the property's value.
What is the expected additional revenue for the state government?
The state government expects to generate an additional revenue of around Rs 3,000 crore from August 31, 2025, to March 31, 2026.
Why did the state government decide to increase the registration fee?
The state government decided to increase the registration fee to boost revenue, as Karnataka's registration fee is lower than that of other states.
What are the concerns raised by real estate experts and property owners?
Real estate experts and property owners are concerned that the fee increase will deter property registrations, lead to higher overall costs, and potentially encourage black market transactions.
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