With property prices in Chandigarh and Panchkula climbing steeply, the 24 upcoming sectors under Panchkula Extension-2 along National Highway-7 are attracting attention for offering plots at less than half the prevailing rates in Panchkula. Private developers have already begun work in at least four of these sectors, where plots are being sold between ₹50,000 and ₹1 lakh per square yard. In comparison, Panchkula’s property prices have crossed ₹2 lakh per square yard in some areas, making the extension comparatively a more “affordable” option.

A senior officer from the Town and Country Planning Department explained that the plan for developing 24 sectors under Panchkula Extension-2 (Kot-Behla Urban Complex) was originally drawn up in 2008, but residential development only began about five years ago with Eldeco’s township, followed by projects such as Eco City, Sigma Residency, Sunlit Urbana, Hill View, Rangoli, Orange Flower City, Palm Valley, and Sigma Jaswant Garden. Haryana Urban Local Bodies Minister Vipul Goel described the extension as having “great possibilities for development in the coming years,” adding that the government is committed to supporting growth in the area and expects “a good future here”.

In the initial phase, residential areas are being developed in sectors 12A, 14, 15, and 16, largely by private players. Under the Deen Dayal Jan Awas Yojna housing scheme here, plot sizes range from 100 to 180 square yards, while outside the scheme, plots between 250 and 1,000 square yards are being offered. Most of these townships are located within 10 kilometres of the Panchkula Deputy Commissioner’s office. Blissed Homes Realty managing director Gaurav Sharma noted that “residential properties in Chandigarh are available at rates of ₹3.5 lakh per square yard or above, while plots in Panchkula or Panchkula Extension-1 are nearly ₹2 lakh per square yard. In contrast, plots in Panchkula Extension-2 are available in the range of ₹60,000 to ₹1 lakh per square yard”.

Shri Shyam Properties co-founder Vijay Goyal emphasised the locational advantage of the extension, saying, “Due to its location on National Highway-7 and proximity to the Panchkula mini-secretariat, even major real estate players plan to develop townships here, offering plots from 300 square yards to two-kanal sizes. These projects will include luxury facilities like clubs, large parks, sports infrastructure, high-rise buildings, and commercial areas.” He added that “proposed 32-metre-wide roads for sector-to-sector connectivity and 24-metre-wide inter-sector roads will ensure smooth movement, while a planned new road linking NH-7 to the Delhi highway and Mohali will further enhance accessibility”.

There are also growing calls for government intervention. Ambala Congress MP Varun Chaudhary remarked that “the HSVP is now auctioning every plot, which goes against its own mandate of providing affordable and quality housing. Time will reveal how private players actually perform, as past experiences have shown instances of incomplete residential projects that forced residents to seek legal remedies in an effort to safeguard their interests.”

Shivalik Vikas Manch president Vijay Bansal argued that HSVP should develop new sectors near Panchkula to provide affordable housing options for poorer and lower-middle-class citizens through plot allotment draws. He cautioned that “the government needs to remain vigilant as several private developers enter the area, ensuring that all legal provisions are followed and that civic amenities are provided in the new townships.”

Responding to a question in the Vidhan Sabha in March 2025, the state government had clarified that there was “no proposal under consideration to allot residential plots through a draw system in HSVP sectors”. However, Chief Minister Nayab Singh Saini had confirmed that “HSVP plans to develop a total of 41 sectors in various urban estates across the state.” He explained that land procurement through e-bhoomi was underway, and “in the first phase, Sectors 14, 16, and 22 of the Kot-Behla Urban Complex (Panchkula) Development Plan and Sector 31 of the Pinjore-Kalka Urban Complex Development Plan are to be developed as pilot projects”.