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The Chandigarh Housing Board (CHB) is set to conduct a fresh demand survey after hiking flat prices by up to 40% in its Sector 53 self-financing housing scheme. Earlier this year nearly 7 500 applicants expressed interest in 372 units, compared with just 178 in 2018-19. Following a sharp increase in collector rates, 3-BHK flats have jumped from INR 1.65 crore to INR 2.29 crore, and 2-BHK units from INR 1.40 crore to INR 1.97 crore. The board will offer existing applicants the choice to accept new rates or withdraw, with a final decision due within weeks.
For the first time in seven years, Chandigarh Housing Board (CHB) may reopen its February-March demand survey for the Sector 53 self-financing project after sharply raising flat prices. The board increased rates by between 30% and 40% following a revision in land collector rates, leaving many earlier applicants uncertain about their options. Advertisement
In the survey held earlier this year, almost seven and a half thousand prospective buyers paid deposits of INR 5 000 to INR 10 000, depending on flat type, to register their interest in 372 available homes. By contrast, the previous survey in 2018-19 drew only 178 applicants, underscoring a dramatic rise in demand before the price review.
A senior CHB official explained that the price revision was unavoidable. "Collector rates rose significantly, and we had to pass on the increase," he said. "A three-bedroom unit that was priced at INR 1.65 crore now stands at around INR 2.29 crore if the new rates come into effect. Two-bedroom units have moved from INR 1.40 crore to INR 1.97 crore, and for the economically weaker section, prices have jumped from INR 55 lakh to INR 73 lakh."
The steep rise has prompted the board to consider two paths. Existing applicants will be given the option to either accept the revised rates or withdraw from the scheme with a full refund of their deposit. CHB hopes this approach will balance fairness to early registrants with the need to align prices with market values and government valuations.
The board initially warned that it would announce its decision within a month after the close of the survey. However, as more than two months have passed without clarity, anxious applicants are reportedly considering legal action to recover their deposits.
The Sector 53 scheme was first mooted in 2018 but was shelved after the initial survey revealed limited interest at the prevailing prices. A revived effort in 2023 again stalled, before the CHB launched the latest survey earlier this year. Rising construction costs and land values have now forced the board to revisit its pricing strategy.
As the CHB prepares to launch the second survey, it also plans to review its allotment process and payment schedule to ensure greater transparency and flexibility. Observers believe the board might stagger payments more evenly over construction milestones, easing the upfront burden on buyers.
Sector 53's self-financing model allows CHB to develop housing without relying on subsidy funds, but it also exposes early registrants to greater price volatility. To mitigate this, the board is discussing a cap on future rate increases once construction commences, guaranteeing that prices will not rise further beyond the revised levels.
If the fresh survey proceeds, all applicants, new and existing, will once again compete for limited flats, with priority likely given to those prepared to confirm bookings at the revised rates. The CHB expects to finalise the allotment list within weeks of closing the demand round.
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