Builders flag delays in property registrations, seek policy reforms

Karnataka builders flag e‑khata delays stalling registrations; Credai seeks streamlined approvals, revised ₹45L cap, larger units, lower GST, and industry status

Karnataka’s real estate sector has raised concerns over mounting delays in property registrations and project handovers, citing bottlenecks in the issuance of e‑khatas and related approvals. Despite occupancy certificates being granted, developers say buyers of completed projects are unable to take possession due to pending documentation, electricity connections, and statutory clearances.

At the South Con 2026 conclave, Credai Karnataka formally urged the Greater Bengaluru Authority to streamline procedures and eliminate chokepoints that are stalling transactions. Industry representatives stressed that the delays are administrative rather than technical, leaving homebuyers stuck despite projects being ready for occupation.

The builders’ body also highlighted affordability challenges in the housing market. Credai has asked the Union government to revise the affordable housing price cap of ₹45 lakh, which has remained unchanged since 2017. Developers argue that the cap no longer reflects current market realities and restricts access to benefits under affordable housing schemes.

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In addition, the sector has proposed increasing the permissible apartment size to 120 square metres in Tier‑2 and Tier‑3 cities, and 90 square metres in metropolitan areas, to better align with buyer demand. Credai’s national leadership has further called for lower GST rates on affordable housing contracts, reduced stamp duty, and formal recognition of real estate as an industry.

According to developers, these measures would ease costs, improve financing options, and accelerate delivery of housing projects, while ensuring smoother transactions for buyers awaiting possession of completed homes.

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