Chandigarh auction: 1 kanal plot in Sector 21 fetches Rs 18.88 crore

A one-kanal freehold residential plot in Sector 21 was auctioned for Rs 18.88 crore and a 10-marla site in Sector 15-B fetched Rs 8.33 crore at the Estate Office, Chandigarh’s e-auction on Monday, with the Sector 21 plot commanding a premium of over 14 per cent above its reserve price.

The two sites together yielded Rs 27.21 crore, approximately Rs 2.45 crore above their combined reserve price of Rs 24.76 crore. However, eight of the ten residential freehold plots put up for auction drew no bids and will be re-auctioned shortly.

The Sector 21 kanal plot, carrying a reserve price of Rs 16.52 crore, was the standout performer of the day, closing at Rs 18.88 crore. The Sector 15-B site went for Rs 8.33 crore against a reserve of Rs 8.23 crore, a marginal premium of 1.21 per cent.

Speaking to The Tribune, Deputy Commissioner and Estate Officer Nishant Kumar Yadav said the strong premium on the Sector 21 plot reflected enduring investor appetite for freehold residential land in Chandigarh's established central sectors. “A 14 per cent premium over reserve price on a one-kanal freehold site in Sector 21 is an encouraging market signal. The unsold sites will be re-auctioned shortly and we expect broader participation in the next round,” he said.

Why Sector 21 commands a premium

Demand for government-auctioned residential plots in Chandigarh has consistently been concentrated in the city’s heritage sectors — roughly Sectors 15 to 22, where Le Corbusier-era planning, mature green cover, proximity to the city centre, and established social infrastructure sustain valuations well above the Tricity average. Monday’s result is consistent with this trend, has been tracked across successive Estate Office auctions.

The eight unsold plots, in Sectors 20, 23, 27-D, 30-A, 37-A, 44, and 44-B, ranged from 100-square-yard sites in Sector 44-B at reserve prices of Rs 3.30 crore each, to a 500-square-yard plot in Sector 44 priced at Rs 16.58 crore. Property dealers and market observers contacted by The Tribune have noted that government reserve prices in the city’s outer sectors now rival plotted development options in Mohali and Panchkula, dampening competitive bidding.

Sluggish response, selective demand

The low bid-to-listing ratio, just two of ten sites selling, is consistent with a pattern in Chandigarh’s government-allotted residential real estate segment, where Collector rate revisions and high reserve prices have progressively narrowed the buyer pool. The Estate Office had last revised Collector rates for residential sites in the city earlier this year, progressively narrowing the buyer pool for several categories of government-allotted plots across non-prime sectors into price bands that now rival or exceed comparable builder-floor offerings in the Tricity periphery.

How the auction worked

The e-auction was conducted on the national portal eauction.gov.in. The auction window ran from 9 am to 11 am. Bidders were required to hold a Digital Signature Certificate and pay EMD through RTGS/NEFT. The notice had been published on June 2, with document and EMD submission closing June 23.

Fresh dates for re-auction of the eight unsold sites will be notified on estateoffice.chd.gov.in.

SALIENT FEATURES:

• Sector 21 (1 kanal): Rs 18.88 cr (14.25% above reserve)
• Sector 15-B (10 marla): Rs 8.33 cr (1.21% above reserve)
• Total yield: Rs 27.21 crore
• Premium over reserve: Rs 2.45 crore
• Sites unsold: 8 of 10
• Re-auction: Dates to be notified