Punjab Govt Increases CLU, EDC & License Fees by 250%–400%: Home Buying Becomes Costlier – Full Detailed Report (2025 Update)

Published by: News Desk – Garah Pravesh
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A Massive Shockwave in Punjab’s Real Estate Market

The Punjab Government has issued a major notification on 24 November 2025, announcing one of the biggest hikes ever in CLU Fees (Change of Land Use), EDC (External Development Charges), and License Fees.
This revision affects residential, commercial, industrial, institutional, and group housing categories across:

• Mohali

• Zirakpur

• Kharar

• Derabassi

• Banur

• Lalru

• Peripheral villages

The new notification makes it clear:
👉 Buying property in Punjab—especially Mohali–Zirakpur—will now become significantly more expensive.

With hikes ranging between 250% to 400%, developers will have no option but to increase prices, which means the cost of flats, plots, and commercial spaces will rise across Tricity.

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CLU, EDC & License Fees Increased Up to 4 Times – What Has Changed?

The Punjab Government has updated fee slabs for:

• Residential Plots

• Group Housing Projects

• Commercial Projects

• Industries & Warehousing

• Marriage Palaces

• Hospitals

• Petrol Pumps

• Institutional Buildings

The increase ranges mostly between 254% to 280%, with hospitals in Mohali–Zirakpur seeing a 413% jump.

This fee structure will affect almost every upcoming project in the region.

Mohali–Zirakpur: The Highest Fee Hike in Punjab

📍 Mohali–Zirakpur CLU/EDC/License Fee Hike (With Percentage Increase)

Kharar, Derabassi, Banur & Nearby Villages – Major Surge in Fees

These regions, previously known for affordable real estate, have also witnessed steep hikes in fees across almost all categories.

📍 Kharar–Derabassi–Banur CLU/EDC/License Fee Hike (With Percentage Increase)

Why Did the Punjab Government Increase CLU, EDC & License Fees by 250%–400%?

1. Fees Were Outdated for Nearly a Decade

For 8+ years, fees remained unchanged while land values skyrocketed.

2. Rising Infrastructure Costs

Roads, sewer lines, water supply, drainage, and electricity development costs have increased significantly.

3. Discouraging Unauthorized Colonies

High costs will push development toward planned, licensed housing.

4. Government’s Revenue Boost Strategy

Fee hikes will generate essential revenue for urban improvement.

However, the biggest burden ultimately falls on homebuyers.

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How the Fee Hike Will Impact Homebuyers in Punjab

✔ Property Prices Will Increase 10%–20% Within Months

Developers will add increased land cost + fees into the final pricing.

✔ Affordable Housing Takes a Hit

Budget-friendly projects in Zirakpur–Kharar will become costlier.

✔ Resale Property Becomes More Attractive

Old inventory doesn’t carry the new fee burden.

✔ Launch Price of New Projects Will Surge

Group housing and commercial launches will be noticeably more expensive.

✔ Construction-Linked Payouts May Rise

Higher capital requirement for developers impacts payment plans.

Impact on Builders & Real Estate Developers

Higher Initial Investment Needed

Paying 250%–400% higher fees increases land development cost drastically.

Developers May Delay Launches

Recalculating project viability may take time.

Reduced Profits Unless Prices Increase

Builders cannot absorb these additional costs.

Shift Towards Premium Projects

Affordable projects may drop, luxury projects may rise.

Area-Wise Impact Assessment (Enhanced Analysis)

Mohali & Zirakpur

• Extremely high demand region

• The highest fee hike among all zones

• Prices of apartments will rise sharply

Kharar & Derabassi

• Emerging residential hubs

• Will see major price hikes in upcoming launches

Banur, Lalru, Villages

• Industrial + warehousing costs up by 250%

• Institutional projects become costlier for schools/hospitals

Should You Buy Property Now or Wait? Expert Opinion

This is the BEST TIME to buy, because:

• Current prices are based on old fee structure

• Developers have not yet officially added new costs

• After fee adjustment, prices will rise 10%–25%

Call Garah Pravesh (7087949434) for transparent and verified deals.

Best Buying Opportunities Now

• Under-construction projects with old pricing

• RERA-approved societies

• Resale inventory

• Ready-to-move flats

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Will Punjab Real Estate Become Unaffordable?

Real estate in Punjab was already rising due to:

• High NRI demand

• Limited new supply

• Increased construction material cost

• Post-pandemic migration to suburbs

With the new fee hikes, Mohali–Zirakpur may soon match the pricing of Chandigarh outskirts.

Hidden Positives of the Fee Hike

✔ More Planned Development

Fewer unapproved colonies.

✔ Improved Infrastructure

More funds for road and urban project development.

✔ Higher Quality Construction

Builders will compete to justify increased selling prices.

✔ Increased Real Estate Stability

Discourages overbuilding and speculative projects.

Conclusion — A Turning Point for Punjab Real Estate in 2025

The Punjab Government’s decision to increase CLU, EDC, and License Fees marks a significant shift in the state’s real estate ecosystem.
While it raises immediate buying costs, it also promises better infrastructure, regulated growth, and more organized development.

But for buyers…

📌 Prices are set to rise sharply

📌 Best deals available for a very short window

📌 Trusted real estate guidance is crucial

For transparent, best-value deals in Mohali–Zirakpur–Kharar–Derabassi:
📞 Garah Pravesh – 7087949434

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FAQs – Punjab CLU, EDC & License Fee Hike (2025)

Q1: What is CLU and why did the government raise its fee?

CLU (Change of Land Use) is a charge for converting land from one usage to another.
Fees were outdated and needed revision to match today’s urban development costs.

Q2: Will property prices go up immediately?

Yes. Developers will factor the new fees into their pricing within weeks.

Q3: Which regions saw the highest increase?

Mohali–Zirakpur, with hikes between 254%–413%, the highest in Punjab.

Q4: Should buyers wait or purchase now?

Buying now—before new pricing gets implemented—is the best financial decision.

Q5: Are resale properties affected?

No. Resale homes are unaffected by new fees and may offer the best savings.

Q6: Will rental prices go up too?

Yes, as construction costs and purchase rates increase, rental demand rises.

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