The property rates, both commercial and residential, in the city are set to increase manifold as the UT administration on Friday hiked the collector rates by up to 50% which will come into force with immediate effect.
The collector rate is the minimum rate at which the property is registered and nobody is allowed to purchase land and immovable properties in different categories below the rate determined by the administration.
The previous revision of the collector rates was done in September last year and it was hiked by 10%.
According to the revised rates approved by the committee constituted under UT deputy commissioner (DC) Mohammad Shayin, shop-cum-offices (SCOs) in Sector 17 continue to be the most expensive in the city.
Hike to divert investors to Mohali, Panchkula
With property rates in the city skyrocketing, the revised collector rates will force the buyer to move towards SAS Nagar and Panchkula, feels experts. Terming the decision of the administration to hike the rates by up to 50 % as unjustified, former president of Association of Property Consultants of Chandigarh Kamaljit Singh Panchhi said the increased collector rates would divert investors outside Chandigarh.
"Why would an investor come to Chandigarh when he can buy a property of same size at less price and the margin of profit is almost the same," he said.
The market has witnessed a slump in the past few years and the decision of the administration will make things more difficult, rued the Chandigarh Beopar Mandal (CBM).
CBM general secretary Vinod Joshi said, "The administration should prepare a policy to attract more investors rather than discouraging them by imposing heavy collector rates."
Due to the slump in market, the estate office has not held any auction since December 2009. In 2010, the administration had planned auction of residential and commercial sites, but it was cancelled at the last hour. As a result of delay in auction, the administration is losing out on huge revenue that could be earned through auction.
Dream house gets more out of reach
Those planning to purchase a residential property in the city will have to shell out more in both urban as well and the rural areas.
Now, residential property in the urban area would be registered at Rs 82,368 per square yard as compared to Rs 54,912 per square yard last year. In the rural area one would have to pay Rs 10,296 per square yard as collector rate which was Rs 6,864 last year.
New rates for residential plots
5 marla: Rs 1.02 crore
6 marla: Rs 1.23 crore
8 marla: Rs 2.05 crore
1 kanal: Rs 4.1 crore
(All rates approximate)
Type of property Old rates New rates
Industrial Area Phase 1 and 2 Rs 54,912 Rs 82,368
Booth in Sectors 17, 19, 22, 34 & 35 Rs 308,880 Rs 463,320
Booth in Sectors 7, 8, 9, 16, 18, 20, 21 & 26 Rs 247,104 Rs 370,656
Booth in Sectors 23, 24, 32, 37, 38 & other Rs 171,600 Rs 257,400
SCO in Sector 17 Rs 171,600 Rs 720,720
SCO on Madhya Marg, Sectors 22, 34 & 34-35 dividing road Rs 205,920 Rs 514,800
(All rates per square yard)