Big Picture: Chandigarh’s realty reality, bids triple, revenues surge, but defaults signal fragile boom

Chandigarh’s real estate auctions have become some of the most closely watched property events in North India. What once drew modest bids now routinely sees jaw-dropping figures, with reserve prices doubling or even tripling within minutes of the hammer falling.

From residential plots in Sectors 37, 38 and 40 to marquee commercial and nursing home sites in 19-B, 33-C and 51, the numbers tell a story of staggering escalation. But behind the glitter is a growing shadow — repeated defaults by winning bidders, forcing cancellations and raising serious questions about speculative buying.

HOW THE ESCALATION UNFOLDED

2019: The turning point

In early 2019, residential sites in Sectors 32, 37 and 40 drew bids of Rs 1.7 crore to Rs4.5 crore, nearly double THE reserve prices. By November, a 1,014 sq. yd. site in Sector 33 sold for Rs 15.3 crore against a base of Rs 7.5 crore — more than twice the reserve and became a marker of things to come.

2022: Momentum turns into frenzy

In February–March, a 528 sq. yd. site in Sector 40-B fetched Rs 6.5 crore against a reserve of Rs 3.7 crore. Plots in Sectors 34 and 37 went for Rs 4.2-5.6 crore. Commercial sites also witnessed a surge. An SCO (Shop Cum Office) site in Sector 42 hit Rs 8.5 crore, over twice its Rs 3.7 crore base. Nursing home sites leapt higher — two plots in Sector 51 sold for Rs 8.5-9.3 crore, nearly 40 per cent above reserve. Later in the year, a 744 sq. yd. nursing home site in Sector 33-C fetched Rs 18.25 crore, 2.5 times its reserve.

2025: A record-breaking September

This year underlined how deep-pocketed the demand has become.

Three adjacent 503 sq. yd. plots in Sector 19-B sold for over Rs 22 crore each, nearly triple their Rs 7.4 crore reserve.

A 1,014 sq. yd. site in Sector 33-C set a record at Rs 33.41 crore, more than double its Rs 14.9 crore reserve.

The trend was similar even for smaller plots of 127–200 sq. yds. in Sectors 40 and 44, which sold for Rs 4–6.6 crore, far above their reserve.

On the commercial side, a double SCO site in Sector 8-C touched Rs 20 crore, while constructed booths in Sectors 44 and 45 crossed Rs 2.25 crore, originally reserved under Rs 80 lakh.

THE RECURRING WEAK SPOT: DEFAULTS

For every record bid, the Estate Office has had to grapple with bidders who vanish after winning. Beginning in 2019, multiple defaults were witnessed, including residential sites in Sectors 37 and 38 and booths in Sector 44. Defaults persisted in 2022, seen in Sectors 40-B, 37, 33 and the headline SCO 42 deal (Rs 8.5 crore), which was cancelled after non-payment.

In 2025, successful bidders for constructed booths in Sector 44 failed to deposit the mandatory 25 per cent, leaving officials to decide on forfeiture and re-auction.

Estate Officer Nishant Kumar Yadav admits the problem, saying, "Chandigarh’s planned character and limited land supply makes every auction a high-stakes contest, pushing bids to record highs and significantly boosting revenue. This reflects the strong faith property buyers have in the city’s transparent land governance. While defaults do occur, they are being firmly addressed — in this month’s auctions, for instance, of 13 residential properties, only one case of default was reported. Our priority is to ensure that Chandigarh’s property growth is shaped by serious, committed buyers rather than speculative players."

A HIGH-WIRE ACT

In just five years, Chandigarh’s property auctions have gone from crores to tens of crores, turning a limited land supply into one of India’s hottest real estate theatres. But with registrations falling and defaults rising, the boom looks less like a straight climb and more like a high-wire act — dazzling, yes, but precariously balanced.

Registration paradox: Fewer deals, higher value

Auctions may dominate headlines, but Chandigarh’s property registration data reveals a subtler picture. Between April and August 2025, only 4,352 property documents were registered, compared to 4,375 in 2024 and 4,906 in 2023. Clearly, transaction volume has slipped for three years in a row. Yet, paradoxically, stamp duty collections jumped to Rs 1,284.8 crore in 2025, far higher than Rs 944.82 crore in 2024 and even surpassing Rs 1,114.52 crore in 2023.

Why the mismatch?

The simple answer to mismatch is fewer deals, but bigger ticket sizes. With auctions fetching Rs 20-30 crore deals, the government earns more duty despite falling registrations. Registration fee collections, which are capped amounts per document, tell a flatter story: Rs 25.3 crore in 2025, about the same as 2024 and lower than 2023.

“Auctions may show aggressive demand, but the registration slowdown reveals a more cautious market. End-users are thinning out, while high-value investors dominate,” says Estate Officer Yadav.

THE CHANDIGARH TREND

Chandigarh’s property market continues to swing between euphoria and caution, reflecting the unique dynamics of a city with finite land and unmatched demand.

Auctions driving big numbers

Every UT Estate Office auction is treated as a high-stakes contest. The city’s planned character and scarcity of land push bidders to outdo one another. Officials stress that aggressive bidding underlines confidence in Chandigarh’s transparent governance framework.

Registrations show sustained demand

Parallel to auctions, the property registration trend paints a consistent picture of demand. Transactions remain buoyant, despite periodic policy changes and fluctuations in stamp duty. High-value transactions — especially in premium sectors — demonstrate that Chandigarh remains on investors’ radar.

Revenue keeps rising

For the UT Administration, auctions and registrations translate into robust revenue. Each crore earned from premiums, transfer charges, and stamp duty strengthens civic infrastructure funding. Recent figures indicate year-on-year growth, driven equally by record auction bids and steady registration numbers. Officials note while defaults impact short-term inflows, strict enforcement ensures minimal long-term loss.

The road ahead

The twin drivers — high-value auctions and steady registrations — make Chandigarh one of the most resilient urban property markets in the region. The challenge lies in balancing investor appetite with safeguards that deter speculative defaults, ensuring that growth is anchored in genuine ownership rather than risky churn.