Property Registration in Karnataka to Get Costlier from August 31

Buying or registering property in Karnataka will become more expensive starting this Sunday, as the State government has decided to double the registration fee. The fee, which was earlier 1% of the property value, will now be 2%.

The move comes as the Department of Stamps and Registrations struggles to meet its revenue targets for two consecutive years. In 2024-25, the department collected only ₹22,500 crore against a target of ₹26,000 crore. The shortfall continued in the first quarter of 2025-26, with collections falling short by 35% against the proportional target of ₹28,000 crore.

Until now, property transactions in Karnataka attracted a total levy of 6.6%—comprising 5% stamp duty, 1% registration fee, 0.5% cess, and 0.1% surcharge. With the revised registration fee of 2%, the overall cost will rise to 7.6% for buyers and sellers from August 31.

Mullai Muhilan M.P., Inspector-General of Registration and Commissioner of Stamps, said Karnataka continues to remain among the lowest in terms of transaction charges compared to neighbouring States. “In Tamil Nadu, for instance, the effective rate is 11%,” he pointed out.

The latest order also revises fees for Joint Development Agreements (JDAs) and General Power of Attorney (GPAs) linked to JDAs, doubling the registration fee from 1% to 2%. Officials expect this to have a significant impact, given that JDAs usually involve large tracts of land, directly affecting the real estate sector.

The realty market in Karnataka has already been sluggish over the past few quarters. Builders and developers argue that the slowdown is partly due to the mandatory e-Khata requirement for transactions, which they describe as a major bottleneck. They maintain that increasing registration fees will not solve the issue of revenue shortfalls and could further dampen buyer sentiment.