Buying property in Chandigarh: limited supply, careful due diligence

How the Chandigarh market differs

• Most transactions are resale, so title history and building-rule compliance need careful checking.
• As a Union Territory, Chandigarh has its own administration and rules for registration, stamp duty and property records, different from Punjab's.
• Strict architectural and building controls mean alterations to a property may need regularisation.

How the city is planned

Chandigarh was developed in two phases: Phase I (Sectors 1 to 30), designed for low-rise plotted development, and Phase II (Sectors 31 to 47), planned at a higher density. Development is regulated under the Capital of Punjab (Development and Regulation) Act, 1952 and rules made under it, including the Chandigarh Estate Rules, 2007, alongside the Chandigarh Master Plan 2031. The Supreme Court set out this background in a January 2023 judgment.

Floor-wise sales in Phase I sectors

In that judgment the Supreme Court held that fragmentation, division, bifurcation or apartmentalisation of a residential unit in Phase I of Chandigarh is prohibited. Until the Central Government takes a final decision on any rule changes, it directed that building plans which appear to turn a single dwelling unit into three apartments should not be sanctioned, and that agreements among co-owners to divide a single residential unit into floor-wise apartments should not be registered or enforced.

If you are offered a 'floor' or a share in a house in Sectors 1 to 30, ask your lawyer what exactly you would own, how it would be recorded and whether the position has changed since the judgment, before you pay any token amount.

How AV Realtor helps

For Chandigarh purchases we help you shortlist, check documents with your lawyer, and compare against verified new-build alternatives nearby so you can decide with the full picture.