On August 30, 2025, the Karnataka government doubled the property registration fee from 1% to 2% of the property value. The decision impacts homebuyers, landowners, and investors across the state, making real estate transactions more expensive.
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New Fee Structure Effective Immediately
Officials confirmed that the revised registration fee is applicable to all new property registrations starting August 30, 2025. The change affects both residential and commercial property deals, including sales, transfers, and mortgage registrations.
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Impact on Property Buyers
For example, a buyer registering a flat worth ₹50 lakh will now pay ₹1 lakh as the registration fee instead of ₹50,000 earlier. The increased cost is in addition to stamp duty charges, which remain unchanged.
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Government’s Rationale for the Hike
The state government said the move was aimed at boosting revenue for infrastructure development and urban planning projects. Karnataka has seen rising property values, and the hike is expected to bring additional funds for civic works.
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Reactions From Real Estate Sector
Real estate developers and property consultants expressed concern, saying the doubling of fees may discourage potential buyers. They argue that property costs are already high in Bengaluru and other cities, and the hike could slow down demand.
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Legal Experts Advise Buyers
Lawyers specializing in property law recommend that buyers carefully calculate total transaction costs before finalizing deals. Apart from the 2% registration fee, expenses include stamp duty, GST (where applicable), and legal documentation charges.
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Comparison With Other States
With the revision, Karnataka’s property registration charges are now among the highest in South India. While Tamil Nadu and Telangana levy around 1%, Karnataka’s 2% rate places additional burden on buyers.
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Likely Shift in Buyer Preferences
Analysts predict that the hike may push more buyers towards peripheral areas around Bengaluru, Mysuru, and Hubballi, where overall costs are lower compared to prime city centers. It could also encourage buyers to delay purchases until the market stabilizes.
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Conclusion: Higher Costs Ahead for Property Ownership
The Karnataka government’s decision to double the property registration fee from 1% to 2% represents a significant cost increase for buyers. While the move may strengthen state revenues, it also raises concerns about affordability and real estate demand.
