Property registrations in B'luru see a rise; falls in Karnataka as a whole
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 notthe case in Bengaluru. In Bengaluru property registration has seen an increaseby 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 gettingloans and the central government’s incentive for low- income and middle- incomegroups may been reason for this rise in property registrations inBengaluru.
Viswa Prathap Desu,senior vice president (sales and marketing), Brigade group said,” Brigade hasseen a rise in sales in August, post settling in of RERA and GST aspects. Thesales are concentrated primarily in Ready-to-move-in apartments resulting inDevelopers liquidating their inventory. We have also seen a higher incidence ofready to move in apartments moving faster. This phenomenon is visibleprimarily in Bangalore and hence once can co-relate with the increase inRegistrations in Bangalore”.
It will be difficultto meet the annual target of Rs. 9,000 crore in revenue as shown by the figuresfor the first five months and the trends since then. Despite the ravage broughton 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 thenumbers till till August stood at 7.76 lakh.
Suresh Hari, vicepresident of real estate association CREDAI said that the the main reason forthe fall in registrations is the implementation of RERA ( Real EstateRegulation Act) and ongoing project registrations.“Builders are finding it hardto promote or advertise their properties because of the delay in theregistration 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 inregistrations in the state.