Chandigarh Boosts FAR to Lower Flat Prices, Permit 6 Floors

Representative AI image
Representative AI image

CHANDIGARH: To enhance housing affordability and revive the recently stalled Chandigarh Housing Board (CHB) project in Sector 53, the UT administration has approved an increase in the permissible Floor Area Ratio (FAR) to 2.4, allowing for the construction of taller residential buildings as part of the proposed group housing scheme.

The change, suggested by the urban planning department, will facilitate the construction of buildings up to six stories high. Officials noted that this adjustment is designed to increase the number of housing units, thereby lowering per-unit costs and improving accessibility for buyers.

“The revised FAR allows for maximum permissible construction of six floors, which is expected to lower the price of individual units,” stated a senior UT official. Under the new regulations, ground coverage is limited to 40% of the plot area, with a maximum building height set at 74.25 feet.

Typically, group housing projects within Chandigarh’s sectoral plan have been limited to a FAR of 1.2, with only limited relaxations previously granted to the CHB. Past phases permitted construction of up to ground-plus-four floors, and some Phase III sectors allowed up to ground-plus-five.

Officials explained that the latest changes maximize development potential within the parameters set forth by the Chandigarh Master Plan (CMP-2031) and existing building regulations. However, they stop short of permitting high-rise developments that are common in neighboring cities, where residential towers often exceed ten stories.

“Within the constraints of CMP-2031 and current regulations, the maximum feasible relaxation has been achieved. Any additional increase would necessitate amendments to the master plan,” the official emphasized, indicating that such modifications are already being considered.

The CMP-2031, which was notified in April 2015 following a draft process that began in 2013, has remained mostly unchanged due to judicial support aimed at preserving the city’s planned character and architectural integrity.

The Sector 53 housing scheme has experienced several delays since its initial launch in 2018, which saw a poor response due to high costs, resulting in only 178 applications for 492 flats during a demand survey.

Although the scheme was revived in February 2023, it was subsequently suspended later that year. In November 2024, it was reintroduced under UT administrator Gulab Chand Kataria, who has advocated for improved housing affordability and supply.

A demand survey conducted in March 2025 attracted considerable interest, with 7,468 applicants for 372 flats. However, a significant increase in collector rates since April has led to a 35% to 40% surge in overall project costs, affecting pricing.

Earlier estimates suggested prices of approximately Rs 74 lakh for EWS units, Rs 1.97 crore for 2BHK flats, and Rs 2.30 crore for 3BHK units. Officials believe these prices may decrease with the higher FAR, increased housing inventory, and potential policy initiatives, including private sector involvement.

Additional relaxations coming soon

The administration plans to raise the permissible FAR in Industrial Area Phase I and II to 2.0, up from the existing 0.75 and 1.0.

Proposals to increase FAR for commercial, hospitality, institutional, and educational properties in areas outside ‘heritage sectors’ are also being evaluated.

A significant Supreme Court ruling in 2023 mandated the strict preservation of Chandigarh’s Phase I (sectors 1-30) heritage, prohibiting the conversion of single-family homes into apartments and freezing FAR to prevent chaotic urban growth.

  • Published On Apr 11, 2026, at 08:54 AM IST

Join the community of 2M+ industry professionals.

Subscribe to our newsletter for the latest insights and analysis delivered to your inbox.

Get all the latest in ETRealty right on your smartphone!

Download our app