The Greater Mohali Area Development Authority (GMADA) has implemented significant increases in property base rates for the financial year 2025-26, raising concerns among homebuyers and real estate professionals about the impact on an already struggling market.
Substantial Rate Increases Across Mohali
According to the official notification issued on November 12, 2025, and signed by Chief Accounts Officer Ajay Mittal, the revised rates show dramatic jumps across various sectors in Sahibzada Ajit Singh Nagar (Mohali). The increases range from Rs 5,000 to Rs 15,000 per square yard compared to the previous year's rates.
Properties in sectors 53 to 71 will now cost Rs 71,500 per square yard, up from the previous Rs 65,000. Similarly, plots in sectors 76 to 80 have been priced between Rs 63,400 and Rs 70,000. The IT City and Eco-City zones witnessed one of the sharpest hikes, with rates jumping from Rs 51,500 to Rs 65,000 per square yard - an increase of Rs 13,500.
Most Dramatic Increases in Key Areas
The most substantial rate hike affects sectors 90-91 and Aerotropolis (Blocks A-D), where the base rate has surged from Rs 46,200 to Rs 65,000, representing a massive jump of nearly Rs 18,800 per square yard.
Commercial properties have not been spared either. Industrial plots in Sector 57-A now stand at Rs 45,000 per square yard, increased from Rs 39,600. SCO sites measuring 100-200 square yards in Industrial Sector 101 have been raised from Rs 1,99,600 to Rs 2,25,000. Even smaller single-storey shops of 60 square yards in the same area have risen from Rs 1,33,100 to Rs 1,50,000 per square yard.
Industry Backlash and Market Concerns
The rate revision has drawn sharp criticism from property experts and industry stakeholders. Shalinder Anand, former president of the Mohali Property Consultant Association (MPCA), expressed strong reservations about the timing and scale of the increases.
"GMADA, which was originally created to provide convenience and affordable housing, has now turned into a property dealer itself," Anand told The Indian Express. "By increasing rates every few months, it is putting unbearable financial pressure on the common man."
Anand emphasized that the hike would have a cascading effect, pushing up transfer fees and extension charges, resulting in an additional burden of Rs 7,500 to Rs 15,000 per square yard on property owners.
Timing Questioned Amid Market Slowdown
Real estate analysts have raised concerns about the timing of these increases, coming when the property market is already experiencing a slowdown. Experts warn that the move could further dampen market sentiment and delay investments in new housing projects.
"This increase will make home purchases and plot registrations costlier," Anand stated. "At a time when the real estate market is struggling, such steep hikes will only worsen the slowdown."
The criticism extends beyond market timing to the fundamental purpose of GMADA. Anand alleged that the authority is "no longer focused on public welfare but on revenue generation," claiming that the collected funds aren't being adequately reinvested in the city's development.
While GMADA officials maintain that the revised rates aim to "bring uniformity and update market-linked valuations," the industry remains skeptical about the impact on Mohali's real estate landscape and affordability for potential homebuyers.
