The real estate market in Karnataka's Haveri district is facing a severe downturn, with property registrations witnessing a dramatic collapse over the past eight months. Official data reveals a steep and sustained decline, pointing to a market where soaring prices have pushed ordinary buyers to the sidelines.
A Market in Freefall: The Startling Numbers
According to Sub-Registrar Sanjeev Kapali, monthly property registrations, which once averaged a healthy 2,000 transactions, have nosedived. The decline began noticeably in April, with registrations falling to 1,023. The situation worsened by October, dipping to 875, and has reached a critical low of just 469 registrations so far in December. This represents a drop of over 75% from the previous average, signaling a deep crisis.
This slump has directly impacted government revenue. Between April and November, the total collection from stamp duty and registration fees stood at over Rs 17.2 crore. Officials fear a significant shortfall as the decline continues unabated, despite state-level reforms aimed at simplifying and digitizing the process for better transparency, introduced by Revenue Minister Krishna Byre Gowda.
The Root Causes: Sky-High Prices and Missing Amenities
Officials, property dealers, and market sources unanimously point to exorbitant land price hikes as the primary culprit. The conversion of agricultural land on the city's outskirts into private layouts has mushroomed, with hundreds of sites now available in every neighborhood. However, this supply has not translated into affordability.
Prices have reached levels that locals find unsustainable. In peripheral layouts that often lack basic infrastructure like roads, drainage, street lights, and water supply, a 30x40 site now costs between Rs 20–30 lakh. In more developed areas, prices have doubled to a staggering Rs 40–60 lakh for the same dimension.
The presence of engineering and medical colleges in Haveri has further fueled speculative price increases, often without corresponding development in civic amenities. Wealthy investors continue to buy at peak rates, encouraging sellers to hold firm on their asking prices. This standoff has frozen the market, leaving real estate agents with little to do and buyers completely hesitant.
Consequences and a Stalled System
The fallout is widespread. Property sales and purchases have virtually come to a standstill in recent days. A staffer from the Deputy Director of Land Records (DDLR) office noted that only those with an immediate need to build houses are making purchases, and that too in thin numbers. The government's own property value guidance has multiplied, making the associated stamp duty a significant deterrent. "Instead, they are opting to invest in gold," the staffer added.
Real estate agent Satish Madiwal echoed the despair, stating, "The real estate business has slumped. On one hand, people lack money, and on the other, the prices of sites and houses have reached their peak. They are quoting Bengaluru and Hubballi rates for properties in Haveri." This unrealistic pricing, coupled with buyer resistance, has rendered many in the profession jobless.
Compounding the problem are administrative delays. Municipal corporations creating separate digital records during property division has become a bottleneck. Registrations cannot proceed until these records are in place, further reducing footfall at the sub-registrar's office and prolonging the market paralysis.
The Haveri property market, once active, now exemplifies a classic bubble where prices have detached from local affordability and infrastructure reality, leading to a painful correction and a stark loss of confidence among all stakeholders.
