In a major policy shift, the UT department of urban planning has, for the first time, approved stilt-plus-six-floor structures for the Sector 53 housing scheme. Until now, only stilt-plus-five structures, as seen in the Sector 63 Chandigarh Housing Board (CHB) flats, were allowed in Chandigarh. The move is aimed at making the most out of the existing prime land in the city, which has limited scope for horizontal expansion.

In another first, the UT has also doubled the Floor Area Ratio (FAR) from 1.2 to 2.4 for the project, thus paving the way for higher-density development. FAR is an important urban planning tool that determines the maximum permissible built-up area in relation to the size of a land parcel. The increase is expected to make the project more viable for private developers while optimising land use.
Following the approvals, the CHB is preparing to auction two land parcels, spread across 4.49 acres, likely next month. Each pocket is expected to accommodate around 250 flats, with developers likely to target high-income buyers through three and four-bedroom units.
This is in keeping with UT administrator Gulab Chand Kataria’s October 2025 directions to split the Sector-53 land into two pockets for auction and subsequent development by private builders. In January 2026, the UT administration had formally allowed the CHB to auction a part of the land to private players for open-market housing.
The board’s plan to monetise the 21-acre site had hit a roadblock due to a 2003 clause that barred CHB from selling the land to third parties for development. The board has sought an amendment to this condition from the UT estate office, which is expected to be approved soon, according to officials.
“We are hopeful of receiving the nod soon and proceeding with the auction by next month. The pricing of flats will depend on collector rates and the unit sizes finalised by the developer,” a senior CHB official said.
The cost estimates had surged sharply, with three-bedroom flats projected to cost ₹2.30 crore, two-bedroom units ₹1.97 crore, and EWS flats ₹74 lakh, following a steep rise in collector rates last April. Despite this, the demand had remained strong, with 7,468 applications being received for 372 flats during a survey last year. The collector rates were further hiked this year.
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