Mohali, Panchkula see rapid growth but Chandigarh's housing sector hits a wall
While nearly 350 housing societies have come up in these two cities—around 200 in Mohali and 150 in Panchkula— City Beautiful has not seen the launch of a single new housing scheme since 2016.
In a limbo
The last major housing scheme launched by the Chandigarh Housing Board (CHB) was in 2016, which offered 200 two-bedroom flats in Sector 51 at ₹69 lakh each.
Meanwhile, a self-financing housing scheme launched for the employees of the UT administration in 2008 remains in limbo as land was not allotted for the project. In May last year, the Punjab and Haryana high court directed the administration to allot land to the applicants at the 2008 rates and construct flats within a year. The directive is expected to result in a loss of nearly ₹2,000 crore to the UT administration given that the collector rates have surged manifold since 2008. The UT has now moved the Supreme Court against the order.
The CHB's most recent attempt to revive housing in the city—its ambitious Sector-53 General Housing Scheme—also hit roadblocks. In August 2023, former UT administrator Banwarilal Purohit put the ₹200-crore project on hold, terming it unnecessary. Although his successor Gulab Chand Kataria revived the scheme in November 2024 and initiated a fresh demand survey, uncertainty continues to loom over its fate.
Under the new collector rates, the prices have risen to a staggering ₹2.3 crore for a three-bedroom flat, ₹1.97 crore for a two-bedroom flat and ₹74 lakh for an EWS flat, leaving officials pondering whether interested applicants will still be willing to proceed at the higher prices.
Another major housing proposal in the IT Park area, which included 728 flats across three categories, was rejected by the Union ministry of environment, forest and climate change in October 2022. The ministry denied clearance, citing that the proposed project site falls within the eco-sensitive zone of the Sukhna Wildlife Sanctuary.
Chandigarh property consultants association president Kamal Gupta alleged that officers on deputation have little interest in addressing the city's housing needs. 'While Mohali and Panchkula are growing rapidly, Chandigarh is being left behind. The administration has completely failed to provide affordable housing. Even schemes for economically weaker sections have been neglected, and the discontinuation of share-wise sale of properties has led to a massive revenue loss,' he said.
Zirakpur builders association president Harish Gupta noted that people working in Chandigarh are increasingly buying homes in Mohali, where property is comparatively more affordable. 'Demand for both residential and commercial properties is high in Mohali. People living on rent now prefer owning a home in well-developed sectors of the district,' he said.
Panchkula property dealers welfare association president
Rajesh Dhanda added, 'Property rates in Chandigarh are extremely high, and with no new housing schemes on offer, people are turning to Mohali and Panchkula for better options at lower prices.'
Former chief town planner of Punjab and the architect of Mohali's master plan, HS Bhogal said, 'Mohali is no longer the poor cousin of Chandigarh. It now boasts of not just housing projects but also top educational institutions, quality healthcare facilities, and a well-planned road network. Many people are selling their properties in Chandigarh and moving to Mohali. Chandigarh faces numerous restrictions on new development, and the city has already reached a saturation point.'
Kapil Setia, former chief architect of the UT administration, said, 'There is a huge demand for housing in Chandigarh, but the supply is practically non-existent. The administration needs to explore more avenues for constructing affordable housing—there are still viable options available. With more people shifting to Mohali and Panchkula, Chandigarh is also losing significant revenue.'
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