Bengaluru's real estate market reported 5667 property registrations in October, an almost 21% dip compared to 7167 units registered in September, according to data by the Inspector General of Registration (IGR) accessed by prop-tech platform Square Yards.
This comes as Bruhat Bengaluru Mahanagara Palike has started implementing the e-khata service, which is causing a major challenge for buyers who are in the process of getting their property documents registered.
E-khata is an electronic version of the traditional khata certificate, introduced by the BBMP in Bengaluru and other local bodies in October. This digital record is available online, where property owners can apply for, download, and verify their khata without visiting the municipal office.
Compared to 2023, the number of registrations in the city dropped by 12.8% from 6506 in October 2023 to 5667 in October 2024. In August 2024, the city saw the highest property registrations at 7,753. The IT capital reported 7,333 registrations in July 2024.
Also Read: BBMP's rush to implement e-khata service has hit property registrations, caused 'distress' to buyers: CREDAI Bengaluru
Has the Bengaluru real estate market witnessed a drop in registrations for the first time?
Bengaluru housing market witnessed an 8% decline in registrations in the July-September 2024 quarter, recording 25,259 property registrations.
{{/usCountry}}Bengaluru housing market witnessed an 8% decline in registrations in the July-September 2024 quarter, recording 25,259 property registrations.
{{/usCountry}}While the number of transactions decreased 8% year over year in the same period, the sales value of the properties declined 15% from the ₹18,505 crore recorded in the July-September quarter of the previous year, an analysis by Square Yards showed.
Consequently, the average home sales value saw a yearly reduction of 7% during this period, with the current average home price in Bengaluru standing at ₹62 lakh, per the analysis.
Also Read: Draft e-khatas of all Bengaluru properties released online, says BBMP. Here's how to secure your final e-khata
Why did the number of properties registered in Bengaluru decline in October?
Experts say the decline in property registrations observed in Bengaluru during October is not indicative of a structural downturn but rather a result of seasonal trends and some operational hiccups.
"Another key factor is the recent implementation of the mandatory e-Khata system by the Bruhat Bengaluru Mahanagara Palike (BBMP). While aimed at streamlining operations, it has encountered significant challenges, including severe server delays that have disrupted property registrations and led to a notable decline in activity at sub-registrar offices," Renuka Kulkarni, Head of Research at Square Yards told HT.com.
However, Kulkarni said this is expected to be a temporary disruption despite these setbacks. She added that as the technical issues surrounding the e-Khata system are addressed, sales and registration volumes will likely rebound in the coming period.
CREDAI flags concerns over e-khata service
Flagging concerns over the e-khata service, Amar Mysore, president of CREDAI Bengaluru, had said that the government should have implemented it in a phased manner.
The service has impacted the registration of properties worth ₹8000 crore, he told HT.com
On December 13, the Karnataka High Court sought a response from the state govt to a public interest litigation (PIL) plea challenging a circular dated September 17 making e-khata mandatory for property registration, as per media reports.