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.

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

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

Next Story
Infrastructure Energy

REC Transfers HVDC Project to Power Grid

REC Limited has successfully handed over the Special Purpose Vehicle (SPV) for a High-Voltage Direct Current (HVDC) transmission project to Power Grid Corporation of India Limited (PGCIL). This strategic move aligns with the nation's objectives to strengthen its power transmission network. Key Highlights: Project Overview: The HVDC project, under the inter-state transmission system (ISTS) initiative, is a critical component of India's push toward robust and efficient electricity transmission. It aims to handle bulk power transfer across long distances while ensuring minimal losses. Role of RE..

Next Story
Infrastructure Transport

NF Railway Collaborates with IIT Guwahati

The Northeast Frontier (NF) Railway has signed strategic Memorandums of Understanding (MoUs) with IIT Guwahati to foster technological advancements and improve railway operations in the region. This partnership focuses on innovative solutions to enhance safety, efficiency, and sustainability in rail infrastructure. Key Highlights: Purpose of MoUs: The collaboration aims to leverage IIT Guwahati's expertise in technology and research for implementing cutting-edge solutions across railway operations. Key areas of focus include: Automation and digitization in maintenance. Sustainability initiati..

Next Story
Infrastructure Transport

Danapur Division Modernization Plans Revealed

The Railway Board has unveiled ambitious plans for the expansion and modernization of the Danapur Division, a critical hub under the East Central Railway. The initiative focuses on infrastructure development, enhanced passenger amenities, and operational efficiency. Key Highlights: Scope of Modernization: The Railway Board's blueprint emphasizes: Upgrading existing infrastructure to accommodate more passenger and freight traffic. Improving station facilities, such as platforms, waiting areas, and connectivity. Introducing advanced signal systems for safer and smoother operations. Freig..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000