From April 1: UT increases collector rates up to 22%; unrealistic, say realtors in Chandigarh

The UT administration has notified revised collector rates for properties, effective from April 1, marking an increase between 8% and 22% across residential, commercial and agricultural segments. Collector rate is the minimum value below which a property cannot be registered. Stamp duty and registration charges are calculated on this rate, meaning any increase directly raises the cost of property transactions.

This comes just a year after the UT implemented a steep hike in collector rates — fourfold rise for residential properties in villages, 130% hike in Sectors 1 to 12, 96% in Sectors 14 to 37, 80% in Sectors 38 and beyond.

According to Tuesday’s notification, rates for Industrial Area in Phase I and II have been fixed at ₹86,000 per square yard, while Phase III stands at ₹62,600 per square yard, marking a moderate upward revision.

The commercial segment has recorded a sharp (15-20% hike) increase as prime booth sites in key sectors, such as 17, 22 and 35, are now pegged at ₹5.92 lakh per square yard. In Shivalik Enclave, the rate is ₹4.10 lakh per square yard, while it is ₹2.33 lakh per square yard for Motor Market in Manimajra.

The ground floor rates in Elante Mall have been set at ₹31,200 per sq ft, with upper floors priced lower, indicating a 10-15% increase over previous benchmarks.

In the residential category, collector rates have been fixed at ₹2.37 lakh per square yard for plots in Sectors 1 to 12, and ₹1.81 lakh per square yard for Sectors 14 to 37. Peripheral sectors beyond Sector 38 are priced at ₹1.33 lakh per square yard, reflecting an overall increase of 10-18%.

The housing units, including independent houses and flats, have seen 8-12% rise. The agricultural land segment saw 20-25% surge as Manimajra land above two kanal has been valued at ₹4.61 crore per acre, while rates in Raipur Khurd and Behlana stand at ₹4.01 crore per acre.

Vikram Chopra, president of the property consultants’ association, termed the revision a “dictatorial move”. “Can government officials themselves afford houses at such prices? If not, why impose such a burden on people?” he asked, warning that it could severely impact the city’s real estate market.

Kamal Gupta, a property dealer, described the hike as a “recipe for disaster”, cautioning that it could dampen investment sentiment and slow down property transactions in the city.