The Local Bodies Department has raised development charges for residential, commercial, and institutional projects from 150% to 260%, marking the first increase since 2017. The hike, applied retrospectively from July 2025, affects external development charges, land-use conversion, licence fees, and other levies in the 167 civic bodies across the state.

Areas around Chandigarh—including Mohali, Kharar, Zirakpur, and Dera Bassi—witness the steepest rises, with project costs expected to pass on to buyers. Similar hikes of 162–264% apply in Ludhiana and Jalandhar, according to a report by The Tribune.

The hike came after the Local Bodies Department adopted a six-month-old notification of the Housing and Urban Development Department in this regard. The department has not increased the charges since 2017.

Officials said the notification increased the development charges, including the external development charges (EDC), change of land use (CLU) and licence fee, besides other levies that are required to be paid by the promoters for approval of their projects.

“Since the revised rates have been applied with retrospective effect from July 2025, all urban local bodies (ULBs) have been asked to recover the dues from the real estate developers.

The maximum hike has been in the areas around Chandigarh, like Mohali, Kharar, Zirakpur and Dera Bassi, that are witnessing large-scale urbanisation with a number of residential and commercial projects being approved under the Punjab Apartment and Property Regulation Act, 1995, and projects under the Mega Project Policy.

Now, the promoter of a residential colony in Mohali would have to pay the development charges of around Rs 1.28 crore per acre against Rs 36 lakh paid as per the previous rates, implying that the end-user would also have to pay more to buy property.

Similarly, the promoter of a group housing project in Mohali would have to pay around Rs 3.65 crore as the development charges against the previous rate of around Rs 1.03 crore per acre. In the case of commercial projects in Mohali, a promoter would have to pay nearly Rs 4.60 crore against Rs 84.254 lakh charged earlier.

In Ludhiana and Jalandhar, the hike varies between 162 per cent and 264 per cent for the residential projects.

Now, the promoter of a residential colony in Jalandhar would have to pay the development charges of around Rs 52 lakh per acre against Rs 19.68 lakh paid earlier. Similarly, the promoter of a group housing project in Jalandhar would have to pay around Rs 1.38-crore development charges against the previous rate of around Rs 52 lakh per acre. In the case of commercial projects in Jalandhar, a promoter would have to pay nearly Rs 1.36 crore against Rs 51 lakh charged earlier.