Karnataka’s auto land conversion reform: What it means for Bengaluru’s real estate?

Karnataka’s auto land conversion reform links conversion with plan approvals in Bengaluru, cutting delays, lowering costs, and enabling B-Khata to A-Khata upgrades

Karnataka has introduced a landmark reform in land administration by rolling out an auto land conversion system within the Greater Bengaluru Authority (GBA) region. The initiative aims to streamline approvals, reduce delays, and strengthen property ownership, marking a significant step toward improving ease of doing business in the state’s real estate sector.

What the Reform Does

Land conversion refers to changing the status of land from agricultural to non-agricultural use, a prerequisite for housing, commercial projects, or layouts. Previously, even land parcels already earmarked for urban use under the master plan required a separate conversion order, a process that often took four to six months. This delay created opportunities for middlemen, added costs, and caused frustration for developers and homebuyers.

Under the new system, landowners and developers in areas covered by the comprehensive development plan (CDP) no longer need to seek separate conversion approvals. Instead, conversion is automatically integrated into the building or layout plan approval process. Once the planning authority sanctions a proposal, the land is deemed converted, eliminating duplication and cutting procedural delays.

Impact on Real Estate

The reform is expected to accelerate project timelines, reduce administrative hurdles, and lower development costs. By integrating conversion with plan approvals, the government aims to bring transparency, predictability, and efficiency to Bengaluru’s real estate market. Developers benefit from faster clearances, while buyers gain from reduced costs and fewer legal uncertainties.

For the city’s growing housing demand, this change supports planned urban development and ensures that projects move forward without unnecessary bottlenecks. The move also enhances investor confidence by providing a clear statutory framework for property transactions.

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B-Khata to A-Khata Conversion

One of the most significant outcomes of the reform is its impact on property documentation. The auto-conversion system creates a pathway for B-Khata properties to be upgraded to A-Khata status, a long-standing demand among Bengaluru residents. Many property owners in unauthorised or partially approved layouts have faced restrictions on loans, resale, and formal approvals due to holding B-Khatas.

With auto-conversion, eligible properties can transition to A-Khata once they meet planning and documentation requirements. This strengthens legal ownership, improves access to bank financing, and increases property values. It also simplifies future transactions such as sales, inheritance, and redevelopment.

Broader Significance

By linking auto-conversion with e-Khata and digitised land records, the government aims to reduce litigation and provide greater certainty in property ownership. The reform is positioned as a bold step toward planned urbanisation, affordable property access, and improved governance.

For Bengaluru’s real estate market, this change promises faster approvals, stronger legal guarantees, and a more transparent system—benefiting both developers and homebuyers in the long run.

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