Property prices Around chandigarh are likely to go up by up to 20%, with the imposition of a new levy by the local government for approval of upcoming residential or commercial projects in municipal areas coupled with high input cost.
The Department of Local Government, Punjab, in a recent notification imposed Processing Fee (PF), External Development Charges (EDC) and Change of Land Use (CLU) for real estate projects falling in municipal areas across the state in order to augment the financial resources of Urban Local Bodies(ULB).
As per the notification, the department has imposed a fee of minimum of Rs 1 lakh per acre (4,840 square yards) to the maximum of Rs 15 lakh per acre on residential projects depending upon areas under municipal authorities across the state.
Maximum charges have been levied on Dera Bassi, Zirakpur, Kharar and Banur, which are situated on the periphery of Chandigarh.
The "heaviest" charges have been levied upon new commercial projects starting from Rs 10 lakh per acre to Rs 1.30 crore per acre. Besides, these charges would be enhanced by 10 per cent every year by the state authorities.
Earlier charges between Rs 2.5 lakh to Rs 3.5 lakh per acre in the form of development fee was being charged by municipal councils or corporations across the state for the residential and commercial projects, they said.
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