Chandigarh Administration Approves Major FAR Increase to Revive Stalled Housing Project
In a significant move to enhance housing affordability and jumpstart the long-delayed Chandigarh Housing Board (CHB) project in Sector 53, the Union Territory administration has granted approval for a substantial increase in the permissible Floor Area Ratio (FAR) to 2.4. This strategic relaxation, recommended by the urban planning department, will facilitate the construction of residential blocks up to six floors under the proposed group housing scheme.
Boosting Development Within Master Plan Framework
The revised FAR of 2.4 represents a major departure from traditional norms governing group housing projects in Chandigarh's sectoral grid, which have typically operated under a FAR limit of 1.2 according to the zoning plan. While limited relaxations were previously granted to CHB, this latest revision maximizes permissible development within the constraints of the Chandigarh Master Plan (CMP-2031) and existing building regulations.
Under the updated guidelines, ground coverage has been capped at 40% of the plot area, with maximum building height fixed at 74.25 feet. "The revised FAR will enable maximum permissible construction up to six floors, which is expected to bring down the price of individual units," explained a senior UT official, highlighting the primary objective of increasing dwelling units to reduce per-unit costs.
Addressing Historical Challenges and Delays
The Sector 53 housing scheme has faced numerous setbacks since its initial launch in 2018, when poor response due to high pricing resulted in only 178 applications against 492 flats in a demand survey. Despite being revived in February 2023, the project was subsequently put on hold later that same year.
The initiative gained renewed momentum in November 2024 under UT administrator Gulab Chand Kataria, who has prioritized improving affordability and expanding housing supply. A March 2025 demand survey demonstrated strong market interest, attracting 7,468 applicants for just 372 flats. However, a sharp 35% to 40% increase in project costs occurred due to rising collector rates since April, further complicating pricing dynamics.
Expected Impact on Pricing and Affordability
Earlier estimates projected prices at approximately:
- Rs 74 lakh for EWS units
- Rs 1.97 crore for 2BHK flats
- Rs 2.30 crore for 3BHK units
Officials anticipate these prices will moderate with the higher FAR, increased housing stock, and potential policy measures including private sector participation. "Within the constraints of CMP-2031 and current regulations, maximum possible relaxation has been provided," the official noted, adding that any further increases would require amendments to the master plan, which are already under consideration.
Preserving Chandigarh's Architectural Heritage
The CMP-2031, notified in April 2015 following a draft process initiated in 2013, has remained largely unchanged, with courts consistently upholding its provisions to protect the city's planned character and architectural heritage. The Supreme Court's landmark 2023 judgment mandated strict preservation of Chandigarh's Phase I (sectors 1-30) heritage, prohibiting conversion of single dwelling units into apartments and freezing FAR to prevent chaotic urban growth.
While the current revision enables taller construction, it deliberately stops short of permitting high-rise development comparable to neighboring cities, where residential towers frequently exceed 10 floors. This balanced approach aims to increase housing supply while respecting Chandigarh's unique urban planning legacy.
Additional Relaxations Under Consideration
The administration is preparing to implement further FAR increases across various sectors:
- Industrial Area Phase I and II: Increase to 2.0 from current 0.75 and 1.0 respectively
- Commercial, hospitality, institutional, and educational properties in non-heritage sectors
These proposed changes reflect a comprehensive strategy to address housing affordability challenges while maintaining the city's distinctive architectural identity and planned development framework.
