Representative image.
Credit: Pixabay Photo
The surge in demand for real estate, especially farmland, outside Bengaluru has helped the state government earn record revenue from property registrations in the last four months, as people dashed to sub-registrar offices before new guidance values kick in from October 1.
So high was the demand that sub-registrar offices in Nelamangala (347), Mysuru West (293), Ballari (276), Kalaburagi (274) and Davangere (272) recorded the most property registrations on September 27.
In contrast, no sub-registrar office in Bengaluru recorded more than 100 transactions that day.
The day's government revenue from stamp and registration fees stood at Rs 312 crore, a record.
Senior officials in the Stamps and Registration Department attributed the rise in transactions outside Bengaluru to the steep revision in guidance value there. "In a few areas outside Bengaluru, there has been huge real-estate development since 2019. We had to increase the guidance value by as much as 100 per cent. In such areas, registration charges have gone up. Hence, there seems to be a rush,” a senior official said.
In comparison, the guidance value hike was 30 per cent or less for most parts of Bengaluru, the official added.
The high number of property transactions outside Bengaluru also indicates an interest among people to invest in farmland and revenue sites.
The 2020 amendment to the Karnataka Land Reforms Act, which allows people without agricultural backgrounds to buy farmland, contributed to increased investments in rural areas, officials said.
There has been a steady increase in rural property transactions since the amendment was passed. The government's announcement in June that it will hike guidance values from October 1 hastened the process.
"Earlier, rural property registrations accounted for only 30 per cent of the registrations in the state. Owing to the liberalisation, the number of registrations has increased and rural registrations now contribute close to 50 30 per cent of the registrations,” another senior official said.