Property registrations across Karnataka halted as state announces lockdown
Real Estate

Property registrations across Karnataka halted as state announces lockdown

Property registrations in Karnataka have come to a pause, as the state has shut down all 243 sub-registrar offices temporarily after the state announced a two week lockdown.

With the halting of property registrations, the real estate industry is worried that the registration of apartments will be delayed, affecting developers’ cash flows.

The Confederation of Real Estate Developers Associations of India (CREDAI), Bengaluru, told the media that the cash flows would be impacted as banks will release housing loans only after registration. Buyers will not be able to avail of capital gains exemptions. The state government also stands to lose revenue from stamp duty and registration fees, said CREDAI, Bengaluru.

Officials of the stamps and registration department do not know when the process will resume. An official told the media that it depends on the Covid situation and the speed of decreasing cases in the state.

During the nationwide lockdown between March 24 and April 25 last year, Karnataka lost out on around Rs 1,000 crore in stamp duty, and registration charges as real estate transactions fell sharply.

Revenue Minister R Ashoka said it is an important revenue source for the state government. Every month, the department collects Rs 800 crore to Rs 1,000 crore, said Ashoka.

In 2020-21, around 19 lakh properties were registered in the state, generating revenue of Rs 10,480 crore as against the revenue target of Rs 12,655 crore. The target for 2021-22 has been kept unchanged.

Another senior official of the revenue department said that delayed registration did not mean revenue losses. According to the official, buyers will have to register their properties once the process restarts.

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Also read: Property launches jump 12%

Also read: Property registrations in Mumbai drop by 50% in April

Also read: Affordable housing keeps real estate sector afloat: PropTiger

Property registrations in Karnataka have come to a pause, as the state has shut down all 243 sub-registrar offices temporarily after the state announced a two week lockdown. With the halting of property registrations, the real estate industry is worried that the registration of apartments will be delayed, affecting developers’ cash flows. The Confederation of Real Estate Developers Associations of India (CREDAI), Bengaluru, told the media that the cash flows would be impacted as banks will release housing loans only after registration. Buyers will not be able to avail of capital gains exemptions. The state government also stands to lose revenue from stamp duty and registration fees, said CREDAI, Bengaluru. Officials of the stamps and registration department do not know when the process will resume. An official told the media that it depends on the Covid situation and the speed of decreasing cases in the state. During the nationwide lockdown between March 24 and April 25 last year, Karnataka lost out on around Rs 1,000 crore in stamp duty, and registration charges as real estate transactions fell sharply. Revenue Minister R Ashoka said it is an important revenue source for the state government. Every month, the department collects Rs 800 crore to Rs 1,000 crore, said Ashoka. In 2020-21, around 19 lakh properties were registered in the state, generating revenue of Rs 10,480 crore as against the revenue target of Rs 12,655 crore. The target for 2021-22 has been kept unchanged. Another senior official of the revenue department said that delayed registration did not mean revenue losses. According to the official, buyers will have to register their properties once the process restarts. Image Source Also read: Property launches jump 12% Also read: Property registrations in Mumbai drop by 50% in April Also read: Affordable housing keeps real estate sector afloat: PropTiger

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