The Union Territory estate office has decided to conduct property auctions every four months following the strong response to its latest round of sales. Officials said a calendar of auctions is being prepared to ensure that vacant properties under the estate office are put up for sale regularly, giving potential buyers more opportunities to participate and enabling the administration to meet growing demand for residential plots in the city. Deputy commissioner-cum-estate officer Nishant Kumar Yadav confirmed that the initiative is aimed at making property availability more consistent and transparent.
The most recent auction of freehold residential sites witnessed 100% sale of the plots on offer. A large property in Sector 33 measuring 1,014 square yards was sold for ₹33.4 crore against a reserve price of ₹14.9 crore, while the smallest property in the auction, a 126 square yard site with a reserve price of ₹1.7 crore, was sold for ₹4 crore.
Overall, the auction generated ₹168.85 crore in revenue against a reserve price of ₹75.29 crore, which officials said reflects both the confidence of investors and the persistent demand for residential plots in Chandigarh. Out of the 20 sites that were offered, all 13 residential sites were successfully sold, though only two of the seven commercial leasehold sites attracted buyers.
The administration has consistently faced challenges in drawing interest for leasehold properties, especially commercial sites, compared to freehold plots. Officials explained that for a leasehold property priced at around ₹20 crore, the allottee must pay close to ₹50 lakh annually as lease rent, with the amount increasing every 33 years. Unlike freehold properties, leasehold allottees do not enjoy ownership rights, cannot freely transfer their properties, and face restrictions on raising loans. Conversion of leasehold commercial sites into freehold is not permitted, which makes them unattractive to most buyers.
The Chandigarh Housing Board and the municipal corporation have also struggled to generate interest in leasehold properties, which continue to remain unpopular despite repeated auctions. Buyers and investors generally prefer freehold ownership, which offers clear title, security, and flexibility in transactions. As a result, while residential auctions have been seeing high participation and aggressive bidding, commercial leasehold auctions continue to show lukewarm response.
The Ministry of Home Affairs last year advised the Chandigarh administration not to sell its commercial properties on a freehold basis. This directive has limited the options available to the estate office for addressing the weak response to leasehold auctions. Nevertheless, officials indicated that the strong results from the residential segment provide a model for ensuring regular inflows of revenue and meeting the city’s property demand.
With the latest auction demonstrating the willingness of buyers to bid well above reserve prices, the estate office believes quarterly auctions will help stabilize demand and supply. Officials added that the move could also bring more transparency to the process, as buyers would know that multiple opportunities are available within a year, reducing speculative activity and making property transactions more structured. For Chandigarh’s urban governance, the step is also expected to strengthen financial inflows, which are linked to funding infrastructure and civic development projects in the city.
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