Chandigarh Plan Changes to Boost Housing and Affordability


CHANDIGARH: Proposed changes to the Chandigarh Master Plan (CMP) 2031 could lead to substantial expansions in housing and mixed-use developments in the city. The UT administration aims to unlock large areas of vacant land and allow for higher-density construction.

Officials believe these changes will address Chandigarh’s increasing housing demand, enhance affordability, and make home ownership more accessible for a broader segment of the population.

A major element of the proposal includes nearly doubling the city’s mixed land use (MLU) area. The draft amendments also suggest raising the Floor Area Ratio (FAR) and promoting vertical development in select zones. According to officials, these initiatives are designed to boost the housing stock within the city’s limited land resources while easing pressure on surrounding towns.

“Over the years, homeownership in Chandigarh has become unattainable for most income groups. Even government entities like the Chandigarh Housing Board have struggled to provide affordable housing due to stringent FAR regulations, limitations on building heights, and a severe shortage of developable land,” stated a senior UT official. “As a result, many middle-class families have been pushed to nearby towns, where civic infrastructure often fails to keep pace with population growth.”

The proposed amendments will extend the existing mixed land use corridor along Vikas Marg by 1.5 kilometres to the south-west, reaching the Chandigarh-Punjab boundary and connecting with PR-5 Road in Mohali. This extension will be taken from the reserved area of Pocket No. 8.

Additionally, approximately 78 acres of vacant land in Sector 43’s sub-city centre, adjacent to the corridor, will be designated for mixed land use.

Another 60 acres of undeveloped land in Industrial Area Phase III is proposed for conversion into mixed-use development. Furthermore, high-rise housing potential in the city’s peripheral areas will be explored, as these regions have traditionally been reserved for rehabilitation colonies.

With these changes, Chandigarh’s total mixed land use area will expand from 252 to 428 acres. The administration will also ensure that any area within the 300-foot-wide corridor along Vikas Marg, previously unaccounted for in the MLU inventory, will automatically be subject to mixed land use regulations.

Housing Potential in IT Park

The proposed amendments also aim to unlock nearly 130 acres in Chandigarh’s IT Park, where development has stalled due to environmental concerns regarding high-rise constructions near the Sukhna Wildlife Sanctuary.

Under the current CMP-2031 provisions, new plotted residential developments are not allowed. However, the proposed IT Habitat project faced delays after the Ministry of Environment, Forest, and Climate Change raised issues in 2022 about potential disturbances to migratory bird paths. To resolve this, the administration has suggested permitting plotted and flatted developments within the IT Habitat zone. Officials believe this would optimize land use and unlock significant housing potential while adhering to environmental height restrictions.

Aligning with National and Global Standards

The amendments also aim to bolster Chandigarh’s industrial sector by revisiting planning regulations for the 153-acre Industrial Area Phase III in the Raipur Kalan-Mauli Jagran belt. The administration notes that Industrial Areas I, II, and III together account for just 1,410 acres—or merely 4.8% of the city’s area—well below the recommended 7% to 8% industrial land use by urban planners, and at the lower end of the 5% to 15% range found in numerous global cities.

To enhance industrial land utilization, the draft proposes increased FAR regulations for Industrial Areas I and II, potentially allowing for more than 15.24 lakh square metres of built-up space in Industrial Area I and 7.86 lakh square metres in Area II. This would also create parking for over 23,000 equivalent car spaces (ECS), according to officials.

  • Published On Jun 18, 2026 at 09:03 AM IST

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