After two years of pandemic-induced lull, the real estate sector seems have bounced back with a bang in Karnataka. Revenue collected in the first quarter of the current fiscal year 2022-23 has not only gone back to pre-pandemic levels, but is also the highest ever in the State. This, despite a 10% rebate on guidance value for most parts of the quarter.
The State saw 6.75 lakh documents registered during April-June, 2022, and a revenue of ₹3,897 crore collected, as against a State government-set target of ₹2,962.73 crore that has been overshot by ₹934.27 crore, data from Inspector General of Registration and Commissioner of Stamps (IGR & CS) shows.
Guidance value factor
This clearly surpasses the first quarter of 2019-20, the year before pandemic, when the State collected ₹2,744.99 crore from property registrations. With the last guidance value revision — a hike in the range of 5% to 25% — carried out in January 2019, and a rebate of 10% on that guidance value in place during the first quarter of 2022-23, it has outperformed pre-pandemic levels too.
B.R. Mamatha Gowda, IGR & CS, Karnataka, attributed the surge in property registrations to resurgence of the real estate sector, post the uncertainty of the pandemic and a few measures taken by the department to boost registrations — 10% rebate in guidance value and opening sub-registrar offices from 9 a.m. to 8 p.m. The guidance value rebate in place from January 1 — March 31 and April 25 — July 24, 2022, is now sought to be extended by at least another quarter by the industry and the government is yet to take a call on the issue, she said.
