Chandigarh, March 6 — Buying property in Chandigarh is set to become significantly costlier as the UT Administration has proposed a sharp increase in collector rates, nearly four years after the last revision.
A draft schedule issued on Wednesday outlines steep hikes—residential collector rates will rise nearly fourfold, while commercial rates in rural areas will increase nearly five times. Sector-wise, the proposed hike is nearly 130% in Sectors 1 to 12, 96% in Sectors 14 to 37, and 80% in Sectors 38 and beyond. Industrial Area, Phase I and II, will see a 30% rise, while commercial properties in key business hubs like Madhya Marg, Sector 34, and Sector 22 will face a 20% increase.
Agricultural land rates are set to go up by nearly 2.5 times. Minor adjustments have been made for Elante Mall and IT Park properties. The final notification is expected by March 25, with new rates effective from April 1.
An official said the revised rates were based on sale deeds recorded at the Sub-Registrar Office and a market survey.
Business Leaders Slam Move
The proposal has drawn sharp criticism from industry and trade bodies, warning of severe economic consequences. Naveen Manglani, vice-president of the Chamber of Chandigarh Industries, called the increase “a recipe for disaster.”
“The proposed revision, including a 33% jump from ₹62,599 to ₹83,000 per square yard in industrial areas, is disconnected from actual market trends. This will drastically reduce property transactions and ultimately shrink the administration’s revenue,” he said.
He added that the industrial area, already struggling with leasehold issues, would suffer further. “Instead of promoting business, the administration is crippling it.”
Sanjeev Chaddha, newly appointed president of the Chandigarh Beopar Mandal, echoed the concerns, stating that commercial property rates had been set excessively high, sometimes exceeding market values.
“The business community is already under pressure. Rather than easing their burden, the administration is making it worse,” he said.
He warned that the hike could drive more businesses to relocate to Panchkula and Mohali, where commercial conditions are more favorable.
Homebuyers, Dealers Raise Alarm
Jitendra Singh, general secretary of the Chandigarh Property Dealers Welfare Association, said the drastic hike would double property registration costs, making homeownership even more difficult for middle-class buyers.
“This is a dictatorial move against the public. With inflation already hitting hard, how can people afford property at these rates?” he asked, questioning whether government officials themselves could purchase homes under the new rates.
He called the decision reckless, arguing that it violates the constitutional right to housing.
CM Malhotra, a resident of a cooperative housing society, said the middle-income group is particularly affected.
“The proposed rates for cooperative societies are more than double the current ones. For sub-conveyance deeds, the difference amounts to over ₹3 lakh,” he said.
With public objections invited until March 20, business leaders and property dealers are urging the administration to reconsider before the new rates take effect.
