Sun Aug 31 01:38:13 UTC 2025: **Bengaluru Realty Market Braces for Impact as Property Registration Fees Double**
**Bengaluru, August 31, 2025** – The State government’s decision to double property registration fees in Karnataka, effective today, has sparked outrage among realtors and industry associations. The fee increase, from 1% to 2% of the property’s guidance value, is intended to boost the state’s revenue but is being met with resistance from the real estate sector, which fears it will stifle the market’s fragile recovery.
The Confederation of Real Estate Developers’ Associations of India (CREDAI) has voiced strong opposition, arguing that the hike will deter investors and dampen the slowly improving public sentiment after the pandemic-induced slump. “We are slowly recovering… Hiking registration fees may push investors to look at other destinations,” warned Suresh Hari of CREDAI, Karnataka.
The Department of Stamps and Registrations defends the move, claiming that even with the increase, Karnataka’s property transaction fees, now at 7.6% of the guidance value, remain competitive compared to other South Indian states like Andhra Pradesh (7.5%), Telangana (7.5%), Kerala (10%), and Tamil Nadu (9%). They have called the hike a “rationalisation.” However, realtors contend that Bengaluru’s property guidance values are already among the highest in the region.
The Department’s decision comes amid significant revenue shortfalls. In the previous fiscal year, the Department missed its revenue target by ₹3,500 crore, and collections for the first quarter of the current fiscal year are already down by 35%.
Some realtors have also reported disruptions in online registration services on Saturday, the last day before the fee hike took effect, allegedly due to server issues. The Inspector General of Registration and Commissioner of Stamps (IGR&CS), Mullai Muhilan M.P., clarified that while existing registrations were allowed, attempts to pay fees on Saturday for slots after August 31 at the old rate were blocked.
The Department has issued instructions for those who have already booked registration slots and paid the fees, requiring them to pay the difference amount through the official portal. Approximately 850 property transactions are affected by this new regulation.
The real estate industry now awaits the State government’s response to their petition for a rollback, as the long-term impact of the fee increase on the Karnataka property market remains uncertain.
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