Real Estate Project Approval to Cost More in Punjab’s 167 Civic Bodies
Developers in Punjab will now have to pay significantly higher charges to get residential, commercial, or institutional projects approved, following a hike in development fees by the Local Bodies Department. The revised rates, which apply across the 167 civic bodies in the state, increase the charges for real estate promoters from 150% to 260%, officials said.
The hike comes after the Local Bodies Department adopted a six-month-old notification from the Housing and Urban Development Department, which had not revised the charges since 2017. The updated notification includes an increase in external development charges (EDC), change of land use (CLU), licence fees, and other levies that developers are required to pay for project approvals.
Officials noted that the revised rates have been applied retrospectively from July 2025, and all urban local bodies (ULBs) have been instructed to recover dues from developers accordingly.
The maximum increase has been seen in areas surrounding Chandigarh, such as Mohali, Kharar, Zirakpur, and Dera Bassi, which are witnessing rapid urbanisation and a surge in residential and commercial projects. These projects are approved under the Punjab Apartment and Property Regulation Act, 1995, as well as under the Mega Project Policy.
For instance, a residential colony in Mohali will now attract development charges of around Rs 1.28 crore per acre, up from Rs 36 lakh earlier. Similarly, promoters of group housing projects in Mohali will now have to pay approximately Rs 3.65 crore per acre, against the previous rate of Rs 1.03 crore. In the case of commercial projects, charges have risen from Rs 84.25 lakh to nearly Rs 4.60 crore per acre.
In other major cities like Ludhiana and Jalandhar, the hike ranges between 162% and 264% for residential projects. In Jalandhar, the development charges for a residential colony have increased to around Rs 52 lakh per acre from Rs 19.68 lakh, while group housing projects now attract Rs 1.38 crore per acre instead of Rs 52 lakh. Commercial projects in Jalandhar will now cost developers nearly Rs 1.36 crore, up from Rs 51 lakh.
The officials pointed out that these increases will likely affect end-users, as developers may pass on the higher costs to buyers. The move is aimed at ensuring that rapidly urbanising areas generate adequate funds for infrastructure development and civic amenities, aligning development charges with current market realities.
