Property registration in Karnataka has continued its upward trajectory in the six months ending September, reports Manu Aiyappa.
However, this year’s data shows that while nearly nine lakh property registrations were recorded between June and September, revenue of Rs 5,699cr, the highest in recent times, flowed into the exchequer. This is Rs 935cr higher than last year’s revenue for the four months.
Despite rain, floods, high interest rates, rising inflation and, more crucially, the withdrawal of 10% rebate on guidance value, property registration in the state has continued its upward trajectory in the six months ending September.
BR Mamatha, inspector general of registration and commissioner of stamps, said the state has set new benchmarks for the quarter in both registrations and revenue, especially during the monsoon (June to September).
This is remarkable as the real estate market normally sees a slump during the monsoon. The period of ‘PitraPaksh’, which people consider inauspicious, also falls during the season.
However, this year’s data shows that while nearly nine lakh property registrations were recorded between June and September, revenue of Rs 5,699 crore, the highest in recent times, flowed into the state exchequer. This is Rs 935 crore higher than last year’s revenue for the four months.
Stamps and registration department data also shows revenue collected in the six months ending September has not only surpassed prepandemic levels but is also the highest ever. Nearly 13.5 lakh property documents were registered between April and September, and revenue of Rs 8,630 crore was collected, which is Rs 1,270 crore (or 17%), higher than the target of Rs 7,358 crore.
One reason for this massive increase could be due to the rebate in guidance value. To help homebuyers and the sector, which was severely hit by the pandemic, the government reduced property guidance values across the state by 10% until July. It also reduced stamp duty charges from 5% to 3% for flats priced up to Rs 45 lakh.
But despite high interest rates, inflation, and rising input costs, the government refused to extend the offer beyond July. “The revenue performance could have been much better if the government had extended the 10% rebate,” said a senior revenue department official. “People delayed registrations in anticipation of government sops. Otherwise, revenue collection could have increased by another Rs 1,000 crore.”
Suresh Hari, chairman, CREDAI Bengaluru, said: “Demand continues to outpace supply, and this has caused the housing market to soar. With the work-fromhome era ending, commercial real estate is on the rise. The overall economic situation is good, and it has helped prospective buyers,” Hari said.
