Karnataka has doubled the property registration fee to 2% of the transaction value, a move expected to weigh on Bengaluru’s housing demand where affordability pressures were already building.
Developers and brokerages anticipate slower conversions and extended sales cycles as the higher upfront cost nudges fence-sitters to delay purchases, particularly in budget and mid-income segments.
With the hike, total acquisition costs in Karnataka rise to roughly 7.5%–7.6% when combined with stamp duty and cesses, adding around ₹1 lakh on a ₹1 crore transaction purely from the registration fee change.
Muted June-quarter sales and elevated unsold stock could worsen if bookings decelerate, potentially prompting deeper discounts or flexible payment plans to move inventory.
