Daijiworld Media Network – Bengaluru

Bengaluru, Aug 30: Property buyers in Karnataka will soon face higher costs as the state government has announced a sharp increase in the property registration fee, which will now be doubled from 1% to 2% of the property’s value. This new rate will come into effect on Sunday, August 31.

The revised fee hike pushes the overall registration cost to 7.5%, which includes 5% stamp duty and other cesses. This brings Karnataka’s registration fees in line with neighbouring states like Telangana and Andhra Pradesh, but still below the rates in Kerala (10%) and Tamil Nadu (9%).

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According to the government, the hike aims to rationalise the registration system, strengthen administrative procedures, and improve service delivery. The Stamps and Registration Department has further clarified that applicants who have already scheduled their appointments will still be required to pay the difference in fees through the official portal.

This decision comes amid a revenue shortfall. In the fiscal year 2024-25, Karnataka’s stamp duty and registration collections stood at ?22,500 crore, falling short of the target of ?26,000 crore. For the current fiscal year, the revenue collection is already 35% behind the ?28,000 crore target set for the first quarter.

The fee hike has sparked criticism from the opposition. BJP Leader of Opposition R Ashoka condemned the move, accusing the government of burdening citizens further after a series of price increases in essential services. State BJP president B Y Vijayendra also weighed in, calling the hike "outright robbery," with a particular focus on its negative impact on homebuyers and the real estate sector.

The move to raise registration fees is expected to generate additional revenue for the state, but it remains to be seen how it will affect property transactions and the broader real estate market in Karnataka.