Chandigarh, Sept 13: Chandigarh residents will now have to pay almost double to convert their leasehold residential properties into freehold, with the Union Territory Administration revising the charges for the first time since 2017. A notification issued this week said the conversion fee will be calculated on the basis of prevailing collector rates for urban residential areas.
For instance, the owner of a 150-square-metre house in Sector 16 will now be charged close to ₹19 lakh, compared to nearly ₹10 lakh earlier. The notification clarified that while the actual amount depends on a formula linked to property category and size, the collector rate will serve as the base rate. Since new collector rates came into force on April 1, the revised conversion charges will automatically be readjusted each time those rates are updated in the future.
Officials noted that while the charges differ across plot sizes and zones, exemptions for economically weaker section (EWS) housing will continue. Property analysts said the move, combined with the latest increase in collector rates, is expected to push up overall property prices in the city.
Kamaljit Singh Panchhi, president of the Property Federation Chandigarh, said the step would bring clarity but also increase strain on households. “Aligning conversion charges with collector rates brings transparency and uniformity,” he mentioned. At the same time, he urged the Administration to reconsider the effect on middle-income families, particularly in Manimajra (Sector 13). “Applying rates from Sector 38 onwards may not reflect ground realities,” he noted.
Amit Jain, general secretary of the federation, echoed similar concerns, urging officials to modify the clause linking future hikes directly to collector rate revisions. “A fixed window or grace period post rate revision would offer relief and clarity to residents planning conversion,” Jain said.
Experts pointed out that without such safeguards, residents may struggle to plan conversions due to sudden cost escalations tied to government rate updates.
