BENGALURU:The property market in Bengaluru is about 60 per cent bigger than the combined market in 11 other major cities of the state in terms of number of deals.
In other words, two of the every three properties registered in Karnataka are in the IT capital.
According to the data sourced from the stamps and registrations department, Bengaluru has seen 17,04,065 property registrations in the last five years.
In the same period, 11 important cities of the state — Davangare, Mysuru, Hubballi, Ballari, Viajayapura, Hassan, Belagavi, Raichur, Kalaburagi, Dharwad and Mangalore have registered just 10,61,067 properties.
This shows that Bengaluru has been the favourite destination for property buyers and will remain one in future since Tier-II cities in the state have a long way to go before catching up with the Silicon City's growth in property business.
Bengaluru has also been the biggest revenue contributor to the state’s exchequer in terms of stamp duty.
The city has contributed Rs 17,565 crore, which is more than six times the contribution of the 11 cities put together. These cities have contributed just Rs 2,560.02 crore.
“This is because of migration of people, particularly youth, not only from other parts of Karnataka but also from other states. They come here for jobs and settle down here,” said Dayashankar, a property developer.
Interestingly, after Bengaluru, Davangere has registered the most properties with 1,35,219, almost three times that of the coastal city of Mangaluru with just 42,794. Davangere is closely followed by Mysuru and Hubballi with 1,29,842 and 1,16,011 registrations respectively.
However, in terms of revenue contribution, Mysuru stands second after Bengaluru with Rs 898 crore followed by Hubballi-Dharwad together with Rs 402 crore.
But in Mangaluru, property values seem to be quite high compared to other cities as it is the third highest contributor to state’s revenue with Rs 369.89 crore.
‘’The stagnation in property transactions in Mangaluru is mainly due to hoarding of land by builders and realtors. Another reason is artificial increase in property rates which have gone beyond the reach of the common people,’’ K C Nayak, former president of Confederation of Real Estate Developers Association of India, Mangaluru, told Express.
According to officials in the Mangaluru sub-registrar’s office, the small number of registrations is mainly because smaller plots are not being sold due to high prices.