Come April 1, buying property in Chandigarh to cost more

Starting April 1, buying property in Chandigarh is set to become more expensive as the UT administration on Tuesday issued a notification approving a steep hike in collector rates across various property categories.

The collector rates were last revised in April 2021, making this the first change in four years.

The administration has notified an over fourfold increase (316%) in collector rates for residential areas in villages, a 128% hike for properties in Sectors 1 to 12, a 98% increase in Sectors 14 to 37, and an 82% rise in Sector 38 and beyond.

The collector rate is the minimum property value below which a property cannot be registered with the government. Additionally, a 5% stamp duty is calculated based on the collector rate.

According to the notification, collector rates in Industrial Area, Phases 1 and 2, have been increased by 32%, while a 19% hike has been proposed for SCOs, SCFs and bay shops on Madhya Marg, in Sector 22, Sector 34, and the road separating Sectors 34 and 35. There is also a hike of 6% in SCOs and SCFs in Sector 17.

Similarly, collector rates for agricultural land have been raised by nearly 2.5 times. Minor changes have been made to the collector rates for shops, offices in Nexus Elante Mall, and sites in the IT Park. The complete notification can be accessed at https://chandigarh.gov.in/deputy-commissioners-office-1.

An official stated that the new rates were determined based on sale deeds registered in the Sub-Registrar Office, as well as a market and village survey.

The collector rate for booths in the Motor Market, Manimajra, has been set at ₹2,02,600 per square yard. The collector rate for Housing Board houses has also been increased to ₹1,26,400 per square yard. Additionally, an extra 5% collector rate will be charged for shop-cum-shop properties.

Even in neighbouring Mohali, the district administration had increased the collector rates of residential, commercial and industrial properties by 26% to 50% depending upon the locality in September 2024, after a 42% to 76% hike in 2022 as well.

Hike will cripple real estate market, say realtors

Kamal Gupta, president of the Property Consultants’ Association in Chandigarh said the realty market was already slow and the increase in collector rate will further impact it, while giving a boost to neighbouring Mohali and Panchkula. “We urge the administration to reconsider it,” he said.

Kamaljit Singh Panchhi, president of Chandigarh Traders’ Association, Sector 17, termed the hike a dictatorial move against the residents, who were already struggling with inflation and will find it impossible to register properties at such inflated rates.

He questioned whether government officials themselves could afford homes at these exorbitant rates. “If not, what justification is there for imposing such a financial burden on the common people?” he asked. He condemned the decision as reckless, warning that it could cripple the city’s real estate market and make homeownership unattainable.

Similarly, Naveen Manglani, vice-president of the Chamber of Chandigarh Industries, criticised the proposed hike, calling it a “recipe for disaster”. “The collector rates, including a 33% increase from ₹62,599 to ₹83,000 per square yard in Industrial Areas, are highly inflated and disconnected from actual market rates. This drastic increase will inevitably cause a slowdown in property transactions, ultimately reducing the administration’s revenue,” he said.