Chandigarh: Collector rate hike casts shadow over CHB's Sec-53 project
CHB's decision-making process has been marred by delays, marking the second environmental clearance renewal in just two years.
The board recently secured clearance from the environment department after paying a ₹5 lakh fee, following a similar payment of ₹7 lakh in 2024. However, each clearance is valid for just one year, adding pressure on the board to make a final decision.
A senior CHB official confirmed that the issue will be taken up at the upcoming board meeting, though the date remains undecided.
Rising prices threaten viability
In an attempt to gauge public interest, CHB conducted a demand survey between February and March 2025, which saw an overwhelming response from prospective buyers. The survey attracted 7,468 applicants vying for 372 flats in three categories: high-income group (HIG), middle-income group (MIG) and economically weaker section (EWS). The applicants had to deposit ₹10,000 for HIG and MIG flats and ₹5,000 for EWS flats, signalling intent.
Despite the strong demand reflected by the survey — nearly 20 applicants for each available unit — the sharp increase in property prices due to the new collector rates has put the future of the project in doubt.
The board has even started to refund the collected amount, nearly ₹7.5 crore, from the hopeful applicants due to the uncertainty of the project.
Originally, the price for a three-bedroom flat was estimated at ₹1.65 crore, a two-bedroom flat at ₹1.40 crore, and a two-bedroom EWS flat at ₹55 lakh. Under the new collector rates, these prices have skyrocketed to ₹2.29 crore, ₹1.97 crore, and ₹73 lakh, respectively, making the scheme less affordable for many potential buyers.
CHB's long struggle to provide affordable housing
The steep hike in prices mirrors past challenges faced by CHB in launching affordable housing schemes.
In 2018, when the scheme was first proposed, only 178 applications were received for 492 flats, far below expectations. Back then, the high prices — ₹1.8 crore for a three-bedroom flat, ₹1.5 crore for a two-bedroom flat and ₹95 lakh for a one-bedroom flat — resulted in a tepid response, leading to the project being scrapped.
Founded in 1976, CHB was established with the primary objective of providing reasonably priced and good quality housing in Chandigarh. Its last successful housing scheme was rolled out in 2016, when 200 two-bedroom flats in Sector-51 were offered for ₹69 lakh each — a far cry from the current prices.
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