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Chandigarh Housing Board to Auction Sector 53 Land to Private Builders for Affordable Flats After 8 Years

Jan 12 2026

Chandigarh Housing breakthrough: CHB set to auction Sector 53 land to private builders; first such move in eight years

Chandigarh: In a significant policy shift, the Chandigarh Housing Board (CHB) is preparing to auction nearly 10 acres of prime land in Sector 53 to private builders for the development of residential apartments. The decision comes after almost eight years of delay, repeated demand surveys and stalled plans, and is being seen as a major step toward reviving general housing in the city.

For the first time, instead of constructing and allotting flats itself, CHB will allow private developers to build group housing projects on CHB land and sell units in the open market, subject to approved zoning and planning norms. Officials indicated that the auction process is likely to begin within the next two months.

Auction model and land details

According to officials, the land earmarked in Sector 53 will be divided into two or three parcels to attract multiple developers. CHB will retain the role of auctioning the land and overseeing planning compliance, while private builders will take responsibility for construction and sale of flats.

This marks the first instance of CHB opening up its land for private development in general housing, a move expected to speed up execution, improve quality standards and bring greater transparency in delivery.

Why the project was delayed

The Sector 53 general housing scheme has been in the pipeline for nearly a decade. Despite three separate demand surveys receiving strong responses, the project failed to move beyond paperwork.

Key reasons cited for the delay include rising construction costs, feasibility concerns, and planning approvals. Earlier proposals involving CHB-built flats became financially unviable as costs escalated, prompting the shift to an auction-based private development model.

Why CHB opted for the private builder route

Officials said the new approach is aimed at overcoming execution bottlenecks and reducing financial risk for the Board. Private participation is expected to ensure faster construction, modern design features and clearer delivery timelines. CHB will also benefit from higher land value realisation through auction.

Rising collector rates push land values up

Sector 53 has witnessed a sharp revision in land benchmarks following recent hikes in collector rates. The current collector rate is estimated at around ₹62 crore per acre, taking the indicative value of 10 acres above ₹620 crore. The land is expected to be auctioned in two or three parcels, each likely to fetch several hundred crores.

Officials said that with land costs rising, future apartment prices are also expected to firm up, even as demand for housing in the sector continues to remain strong.

Expansion plans beyond Sector 53

CHB is also working on new housing initiatives in Sector 54 near the IT Park, where about 125 acres of land have come under its possession. The Town Planning Department is preparing development plans, with proposals for mixed-density housing and integration with the adjoining employment hub.

What kind of housing is expected

While the final layout will depend on successful bidders, officials said likely configurations include two and three-BHK apartments with lift-equipped towers, basement parking, landscaped areas and adherence to Chandigarh’s architectural and structural safety norms.

Who stands to benefit

End-users may gain access to fresh housing supply in a prime sector, while developers get rare access to Chandigarh’s limited land pool. The move is also expected to interest investors, given the city’s low land availability and steady demand.

Safety compliance remains non-negotiable

Alongside the new housing push, CHB has reiterated that structural and fire safety norms will be strictly enforced. Officials said occupancy certificates will remain linked to compliance and no relaxation will be offered where safety violations exist.

Outlook

With new auctions, IT Park expansion and rising land valuations, Chandigarh’s real estate market is poised for a fresh growth phase. Officials expect stronger demand for compliant projects, steady movement in apartment prices and heightened interest in prime-sector housing.

 




Governor Urges Chandigarh Housing Board to Make Sector 53 Scheme More Affordable

Chandigarh: Amid rising concerns over the high prices of Chandigarh Housing Board (CHB) projects, UT Administrator Gulab Chand Kataria has instructed the board to make its upcoming Sector 53 housing scheme more affordable. The project, slated for a Diwali launch, has drawn attention due to its steep pricing.

Currently, a three-bedroom flat in Sector 53 is estimated at around ₹2.30 crore, while a two-bedroom unit costs ₹1.97 crore. Economically Weaker Section (EWS) flats are priced at ₹74 lakh.

During a meeting at the CHB office in Sector 9, Kataria asked officials to revise flat prices and increase the number of units to make the scheme more accessible. He also recommended reserving additional flats for UT employees under the Sector 54 scheme and suggested considering plots instead of flats in certain areas of the revived IT Park project.

CHB officials presented updates on the board’s ongoing and upcoming projects. The Sector 53 scheme, delayed for several years, will feature 492 flats across 8.98 acres, with buildings up to five storeys high. Notably, CHB’s last housing launch in Sector 51 took place in 2016.

Meanwhile, preparations are underway for a major Sector 54 housing project, set to launch by November. The 32-acre project, developed on land reclaimed from the illegal furniture market and Adarsh Colony, will offer 1,000 flats in both ground+5 and stilt+5 storey buildings. The layout plan has been finalized and will be submitted to the UT Department of Urban Planning within a week.

In addition, the CHB has revived the Rajiv Gandhi Chandigarh Technology Park housing project nearly three years after the Union Ministry of Environment and Forests (MoEF) initially denied clearance in 2022. The earlier plan was rejected due to the site’s location within the eco-sensitive zone of the Sukhna Wildlife Sanctuary, which could interfere with migratory bird paths. Under the revised plan, construction will be limited to low-rise buildings of ground+3 floors on Plots 1 and 2 (16.60 acres) and Plot 7 (6.73 acres), part of the 123 acres of prime land reclaimed from Parsvnath Developers in 2015 after a lengthy legal battle.

 


After years of delays and uncertainty, the Chandigarh Housing Board (CHB) is finally preparing to launch its long-pending General Housing Scheme in Sector-53 in the second week of September. This marks the board’s first housing offering in nearly a decade, with the last successful project rolled out back in 2016 in Sector-51.

 

Project Highlights

  • Total Flats: 492 units across 8.98 acres

  • Buildings: Up to five storeys

  • Categories & Tentative Pricing (Post-April 1 Collector Rates):

    • HIG (3BHK): ~₹2.30 crore (↑ 39% from earlier ₹1.65 cr)

    • MIG (2BHK): ~₹1.97 crore (↑ 40.7% from earlier ₹1.40 cr)

    • EWS (2-room): ~₹74 lakh (↑ 34.3% from earlier ₹55 lakh)

Parking Facilities:

  • HIG flats – double-basement parking

  • MIG & EWS flats – single-basement parking

The steep prices are the result of the revised collector rates, which came into effect on April 1, 2025. Compared to earlier estimates, the costs have gone up by nearly 35%–40%, raising concerns about affordability.

Demand vs. Affordability

A demand survey conducted earlier this year revealed that despite the high prices, interest remains extremely strong. Over 7,400 applicants expressed their willingness to buy, with the majority opting for HIG flats. However, the jump in prices has created uncertainty for many families who had expected rates to remain closer to the earlier estimates of ₹1.65 crore for a 3-BHK, ₹1.40 crore for a 2-BHK, and ₹55 lakh for an EWS unit.

During the survey, applicants deposited between ₹5,000 and ₹10,000 each to confirm their interest. But now, even those who participated will need to submit fresh applications once the scheme formally launches.

Administrative Green Signal

The scheme had been stuck for years due to administrative indecision and repeated delays. In June this year, the UT Administrator gave CHB the go-ahead to move forward with the revised pricing. Environmental clearance has also been secured, with renewal fees already paid to the concerned department.

A Long Wait Ends

CHB’s last major housing project was in 2016, when it offered 200 two-bedroom flats in Sector-51 at a price of ₹69 lakh each. An earlier attempt to launch the Sector-53 scheme in 2018 had failed due to poor response, as prices at that time were also considered too high.

With this fresh push in 2025, the board is aiming to re-establish its role as a key housing provider in the city. The launch is being closely watched not only by applicants but also by the wider real estate community, as it may influence future housing trends in Chandigarh and the surrounding Tricity area.

What Lies Ahead

Once the Sector-53 scheme is launched, the CHB will also shift focus towards its upcoming mega project in Sector-54, where nearly 1,700 flats are planned on a 32-acre site. Design and planning for that project are expected to conclude within the next few months, signaling a new phase of housing development for Chandigarh.

Key Takeaways

  •  492 flats to be launched in Sector-53, across 9 acres.

  •  Prices up 34–41% after April 2025 collector rate revision.

  •  Demand survey: 7,468 applicants; 68% opted for HIG flats.

  •  Reapplication required — earlier deposits will not carry forward.

  • Past failed attempts: 2018 (poor response), 2023 (tenders cancelled).

  •  Final nod from UT Administrator Gulab Chand Kataria awaited.

  •  Future project: 1,700 flats planned in Sector-54.