Karnataka Proposes New Apartment Law to Modernise Ownership and Redevelopment Framework

The Karnataka government has unveiled the Karnataka Apartment (Ownership and Management) Bill, 2026, proposing a comprehensive legal framework to regulate apartment ownership, management and redevelopment across the state. The move is intended to replace the Karnataka Apartment Ownership Act, 1972, and the Karnataka Ownership Flats Act, 1972, which officials believe no longer address the complexities of modern high-rise residential developments.

The proposed legislation comes at a time when Bengaluru has emerged as one of India’s largest apartment markets, with more than 25,000 apartment buildings and an estimated 25 to 30 lakh residential units. Thousands of new apartments continue to be added every year, increasing the need for a modern legal framework that clearly defines the rights and responsibilities of apartment owners, developers and residents’ welfare associations.

One of the key features of the Bill is the recognition that ownership of the land and common areas should rest with apartment owners, while residents’ associations will be responsible for the management, maintenance and administration of shared facilities. The legislation also introduces clearer definitions for private area, super built-up area and undivided share of land, reducing ambiguity in property transactions.

The proposed law also focuses on ageing apartment complexes. Buildings that are more than 30 years old would be required to undergo structural stability assessments every five years. For redevelopment projects, approval from at least 75 percent of apartment owners would be mandatory, while owners who do not consent would be entitled to compensation of at least twice the prevailing market value.

Another significant provision is the introduction of deemed conveyance, allowing ownership of common areas to be transferred to apartment owners even in projects where developers have not completed the formal conveyance process.

The Bill also proposes a dedicated two-tier dispute resolution mechanism under the Urban Development Department to help resolve conflicts involving developers, apartment owners and residents’ associations more efficiently. If enacted after completing the legislative process, the new law is expected to bring greater transparency, improve governance in apartment communities and strengthen consumer protection in Karnataka’s rapidly expanding housing sector.