Bengaluru has shown a positive growth rate in property registrations. It has seen a marginal increase while in Karnataka as a whole there has been a significant decline. In Karnataka as a whole property registrations have come down by 0.4%. It came down from 7.79 lakh in the first five months of 2016-17 to 7.76 lakh in the same period this year.
However this is not the case in Bengaluru. In Bengaluru property registration has seen an increase by a margin of 5% in the first five months of the financial year (April- August) when compared to the same period last year. It is widely speculated that boost in buyer confidence in Bengaluru due to the ease in getting loans and the central government’s incentive for low- income and middle- income groups may been reason for this rise in property registrations in Bengaluru.
Viswa Prathap Desu, senior vice president (sales and marketing), Brigade group said,” Brigade has seen a rise in sales in August, post settling in of RERA and GST aspects. The sales are concentrated primarily in Ready-to-move-in apartments resulting in Developers liquidating their inventory. We have also seen a higher incidence of ready to move in apartments moving faster. This phenomenon is visible primarily in Bangalore and hence once can co-relate with the increase in Registrations in Bangalore”.
It will be difficult to meet the annual target of Rs. 9,000 crore in revenue as shown by the figures for the first five months and the trends since then. Despite the ravage brought on by Demonetization on the real estate deals in the the last financial year, there were 17.39 property registrations in the state. But, this year the numbers till till August stood at 7.76 lakh.
Suresh Hari, vice president of real estate association CREDAI said that the the main reason for the fall in registrations is the implementation of RERA ( Real Estate Regulation Act) and ongoing project registrations.“Builders are finding it hard to promote or advertise their properties because of the delay in the registration process. It has become difficult for the builders to sell So, until the registration process is sped up, this problem will remain”, he added.
Variables like rain, large number of holidays can also be the reason for the significant decline in registrations in the state.