Chandigarh: Come June 30, conversion of freehold property to cost more
Once implemented, the revised conversion charges will result in substantially higher costs for property owners seeking to convert to a freehold; for instance, the proposed conversion charge for Dhanas Milk Colony is set at ₹80,012/sq metre
Converting leasehold properties to freehold in Chandigarh will become significantly more expensive from June 30, as the Chandigarh administration is set to implement new conversion rates. The last revision in these rates was carried out in 2017.
The conversion charges are linked to the collector rates, which were revised on April 1, 2025, and will now be updated in sync with any future revisions in those rates. Deputy commissioner (DC) and estate officer Nishant Kumar Yadav confirmed that the notification for the revised rates will be issued within the next three to four days, with implementation effective June 30.
The new rates will make property conversion costlier in northern sectors compared to southern sectors. The Estate Office had submitted the proposal to the DC earlier this month, and it has since been approved by the administration. The rate revision has been undertaken under the framework of the 2017 notification and will be formally notified shortly.
In a major relief, residents of Dhanas Milk Colony—excluded in the 2017 notification—will now be allowed to convert their leasehold residential properties to freehold. This has been a long-pending demand of local residents.
Property prices set to rise further
Property prices in Chandigarh are already on the rise. With the recent increase in collector rates and the upcoming hike in conversion charges, property rates are expected to surge further, making ownership increasingly difficult for the average buyer.
Once implemented, the revised conversion charges will result in substantially higher costs for property owners seeking to convert to a freehold. For instance, the proposed conversion charge for Dhanas Milk Colony is set at ₹80,012/sq metre.
Conversions still being carried out at 2017 rates
Currently, leasehold-to-freehold conversions are being done based on the 2017 collector rates. However, under the new policy, these charges will be updated annually to reflect any changes in collector rates.
Conversion ban lifted in Dhanas after 12 years
The conversion process in Dhanas Milk Colony has been suspended since April 25, 2013, following a decision taken during a meeting chaired by the then finance secretary. The process was to remain on hold until rates were revised.
Though new conversion rates were notified in October 2017 for other residential areas, Dhanas were excluded at the time. Now, it has finally been included in the latest notification. Dhanas Milk Colony comprises approximately 800 plots, with 700 houses already constructed, ranging from 5 to 15 marla. Only around 100 of these are currently freehold.
Flat owners to bear the maximum burden
The revised rates are expected to hit flat owners the hardest, especially in the middle and high-income categories, as conversion to freehold will now come with a steep cost. However, economically weaker sections (EWS) and industrial properties will remain exempt from conversion charges, as before.
For instance, a Middle-Income Group (MIG) flat that currently requires ₹10,700 for freehold conversion will cost ₹5,27,100 under the new rates.
