The Karnataka Congress government has announced a steep hike in property-related charges. The registration fee on property transactions has been doubled from 1% to 2%. This decision will make buying and registering property in the state more expensive from August 31. Officials said the move was necessary to boost revenue as the stamps and registration department failed to meet its targets in the last two years.
In 2024–25, the department set a target of ₹26,000 crore but managed to collect only ₹22,500 crore. To offset the shortfall, the government revised the registration fee along with charges for Joint Development Agreements (JDAs) and General Power of Attorney (GPA) documents. These will also now attract a 2% registration fee instead of the earlier 1%.
Until now, property transactions in Karnataka carried a 6.6% levy. This included 5% stamp duty, 1% registration fee, 0.5% cess, and 0.1% surcharge. With the revised 2% registration fee, the total cost will climb to 7.6%. Analysts say the revision could slow property transactions and increase the burden on buyers and sellers.
Real estate experts warn that the impact will be significant, especially for JDAs involving large tracts of land. The hike is expected to directly affect developers and investors, potentially reshaping the property market in the state.
