Property prices in Chandigarh set to soar

Starting April 1, buying property in Chandigarh is set to become more expensive as the UT administration has proposed 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 proposed a nearly fourfold increase (400%) in collector rates for residential areas in villages, a 130% hike for properties in Sectors 1 to 12, a 96% increase in Sectors 14 to 37, and an 80% rise in Sector 38 and beyond (see box).

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

According to the draft proposal, collector rates in Industrial Area, Phases 1 and 2, have been increased by nearly 30%, while a 20% hike has been proposed for SCOs, SCFs and bay shops on Madhya Marg, in Sector 22, Sector 34, and the road separating Sectors 35 and 34. 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 Elante Mall, and sites in the IT Park. The complete draft proposal can be accessed at https://chandigarh.gov.in/information/public-notices.

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

On Wednesday, the UT administration issued a public notice inviting objections and suggestions from the public until March 20. Residents can submit their objections and suggestions via email at de-chd@nic.in or in writing at the Estate Office. The final notification will be issued on March 25, and the revised rates will take effect on April 1.

Jitendra Singh, general secretary of the Chandigarh Property Dealers Welfare Association, strongly opposed the hike, calling it a dictatorial move against the public. He argued that people already struggling with inflation would 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 proposed 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.

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.