🏗️ Punjab Government Hikes Development Charges by Up to 100% Amid Realty Boom

Chandigarh | July 20, 2025 — In a significant move aimed at increasing state revenue amid soaring real estate activity, the Punjab Government has announced a sharp hike in development charges for real estate projects across the state. The revised charges, effective April 1, 2025, range from a 50% to 100% increase, depending on the region and project type.

This change directly impacts residential, group housing, and commercial developments, especially in booming areas like Mohali, Zirakpur, Kharar, and Dera Bassi, where urbanization is at its peak.

🔍 Key Highlights of the New Development Charges in Punjab

📈 Why the Hike?

The move comes in the backdrop of an unprecedented real estate surge in Punjab, especially in areas surrounding Chandigarh, where mega residential and commercial projects are being approved rapidly under the Punjab Apartment and Property Regulation Act, 1995 and Mega Project Policy.

With the goal of boosting state revenues and enhancing infrastructure capacity, the Cabinet had earlier passed the decision to increase External Development Charges (EDC), Change of Land Use (CLU) fees, Licence fees, and other levies applicable during the project approval process.

According to the official orders issued by the Principal Secretary of Housing and Urban Development, the revised rates are applicable to all new projects and any extensions of ongoing projects that received approvals on or after April 1, 2025.

🏘️ What This Means for Developers and Buyers

Developers planning projects in high-demand zones like Mohali, Zirakpur, and Dera Bassi now face substantially higher initial costs. These increased outlays are likely to be passed on to homebuyers, pushing up per square foot property prices in upcoming residential and commercial projects.

For instance:

• A 1-acre residential project in Mohali now incurs an additional ₹61 lakh, which could translate to an added cost of ₹300–₹400 per sq. ft. for buyers.

• Commercial real estate, already commanding premium prices, may see rates touching record highs due to increased input costs.

🌆 Impacted Areas with Highest Development Activity

• Mohali & Kharar: High-rise apartments, IT hubs, and gated communities.

• Zirakpur & Dera Bassi: Affordable housing and commercial plazas near NH-22 and PR-7.

• Ludhiana & Jalandhar: Industrial townships and plotted developments.

• Bathinda & Sunam: Mid-scale residential colonies and logistic parks.

These zones are witnessing rapid transformation with multiple mega projects, smart townships, and integrated living spaces under approval or construction.

📜 Official Statement

“In view of increasing urban demands and to fund external infrastructure, the hike in development charges was essential. The decision ensures better urban planning and service delivery,”
— Punjab Housing & Urban Development Department

❓FAQs on Punjab’s Development Charges Hike

1. What are development charges in real estate?

Development charges include costs like External Development Charges (EDC), CLU fees, licence fees, and other levies paid by developers for project approval.

2. When will the new rates be applicable?

The revised charges are applicable to all new projects and extensions to existing ones from April 1, 2025, onwards.

3. Will this affect property prices for buyers?

Yes. Since developers will bear higher costs, property prices are expected to rise, especially in hotspots like Mohali, Zirakpur, and Ludhiana.

4. Which areas are most impacted by the hike?

Regions with booming real estate markets—Mohali, Kharar, Zirakpur, Dera Bassi, Ludhiana, and Bathinda—are among the most affected.

5. Why has Punjab increased these charges now?

The government aims to boost its revenue and support infrastructure development amidst the ongoing real estate boom.

📢 Conclusion

The 100% hike in development charges is set to reshape the real estate investment landscape in Punjab. While it strengthens the state’s ability to fund critical infrastructure, the added costs may slow down budget housing launches and push up property prices. Investors, developers, and end-users must now re-evaluate project feasibility and affordability in light of the revised regulations.

📞 For expert property consultations and transparent deals in Punjab’s hottest investment zones, contact Garah Pravesh at +91 7087949434.

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content source – https://www.tribuneindia.com/news/chandigarh/development-charges-for-realtors-hiked-by-up-to-100/#:~:text=Development%20charges%20for%20realtors%20hiked%20by%20up%20to%20100%25%20%2D%20The%20Tribune