Nearly nine lakh property registrations were recorded between June and September this year with corresponding revenue of Rs 5,699 crore, an al- time high, flowed into the exchequer.
BENGALURU: Property registration in Karnataka has continued its upward trajectory despite the floods, high interest rates, rising inflation and the withdrawal of 10% rebate on guidance value, during the past six months ending September, reports Manu Aiyappa.
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, mentioned that 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.
Stamps and registration department data also shows revenue collected in the six months ending September has not only surpassed pre pandemic 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 steep increase could be due to the rebate in guidance value. Post pandemic, the government reduced property guidance values across the state by 10% until July as the sector was severely hit and also to help homebuyers. 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-from home era ending, commercial real estate is on the rise. The overall economic situation is good, and it has helped prospective buyers,”