Bengaluru is set to witness a significant shift in its urban development model as the Karnataka government moves forward with the Karnataka Apartment Ownership and Management Act 2025 (KAOMA) through an ordinance route. The move signals a transition from horizontal expansion to vertical growth, primarily driven by increasing land constraints in the city.
The proposed ordinance is expected to impact lakhs of apartment residents by introducing a structured legal framework for ownership and management.
Why the Ordinance Matters
The decision comes after prolonged demands from apartment residents and housing associations seeking clarity in ownership rights and governance structures.
Key Drivers Behind the Move
- Rapid urbanisation and land scarcity in Bengaluru
- Limitations of the existing 1972 apartment law
- Growing number of high-rise residential developments
- Demand for transparent governance in apartment communities
Experts note that Bengaluru’s horizontal growth model is no longer sustainable, making vertical expansion a necessity.
Read our blog for more clarity.
Government’s Stand on Vertical Growth
During assembly discussions, the state government highlighted the need to shift towards vertical development.
Policy Direction Includes:
- Promoting high-rise residential projects
- Increasing Floor Area Ratio (FAR)
- Encouraging self-contained urban communities
- Introducing a dedicated parking policy
This approach is expected to optimise land use while accommodating the city’s growing population.
Key Features of KAOMA 2025
The upcoming legislation aims to modernise apartment governance and address long-standing issues.
| Aspect | Current Scenario (Old Law) | Expected Under KAOMA 2025 |
|---|---|---|
| Ownership clarity | Limited and unclear | Clearly defined ownership rights |
| Association governance | Weak structure | Mandatory and structured associations |
| Dispute resolution | Limited mechanisms | Formal dispute resolution system |
| Transparency | Low | Increased accountability |
| Common area management | Ambiguous | Clearly defined responsibilities |
Impact on Real Estate Sector
The ordinance is expected to reshape Bengaluru’s real estate dynamics.
Positive Impacts
- Boost in high-rise project approvals
- Improved buyer confidence
- Increased institutional investments
- Better urban planning alignment
Challenges to Watch
- Infrastructure pressure (traffic, water, waste)
- Need for stricter zoning and planning regulations
- Implementation clarity across existing projects
Industry and Resident Response
Housing bodies and resident associations have welcomed the move, citing the need for a modern legal framework. The proposed Act is expected to enhance transparency and empower apartment owners across Karnataka.
Urban Development Outlook
With Bengaluru’s population continuing to rise, vertical growth is increasingly being seen as a long-term solution. The ordinance could serve as a foundation for future policies focused on sustainable and high-density urban living.
