Key Points

• Research suggests real estate prices in Zirakpur, Mohali, Kharar, New Chandigarh, and Chandigarh are increasing again after a temporary slowdown during the COVID-19 pandemic.
• It seems likely that prices have grown significantly, with New Chandigarh showing a 94.4% increase over five years and Zirakpur at 65.2%.
• The evidence leans toward a recovery driven by infrastructure development and increased demand for residential properties.

Real Estate Prices Increasing Again

The real estate market in these regions has shown resilience, with prices rebounding post-pandemic. This growth is supported by data from real estate portals and market analyses, indicating a strong upward trend. An unexpected detail is the high price appreciation in New Chandigarh, making it a hotspot for investors.

Market Recovery

After the initial impact of the COVID-19 lockdown, which halted construction and reduced transactions, the market has seen a revival. Reports indicate a surge in demand, particularly for residential properties, fueled by improved infrastructure and economic activities.

Investment Implications

For potential buyers and investors, this upward trend suggests a favorable time to enter the market, especially in areas with high growth potential like New Chandigarh and Zirakpur. However, consulting with real estate professionals is recommended for informed decisions.

Real Estate Prices in Zirakpur, Mohali, Kharar, New Chandigarh, and Chandigarh – A Detailed Analysis

The real estate market in India, particularly in the regions of Zirakpur, Mohali, Kharar, New Chandigarh, and Chandigarh, has been a focal point for investors and homebuyers, especially in the context of post-COVID recovery.

As of February 28, 2025, there is significant interest in whether real estate prices are increasing again, and this analysis aims to fact-check this claim with a comprehensive review of available data and trends.

Historical Context and Market Dynamics

Chandigarh, often referred to as the “City Beautiful,” is a well-planned city and the shared capital of Punjab and Haryana, known for its high quality of life and robust infrastructure. The surrounding areas, including Zirakpur, Mohali, Kharar, and New Chandigarh, have emerged as key residential and investment hubs due to their proximity to Chandigarh and ongoing development projects.

Before the COVID-19 pandemic, the Indian real estate market was experiencing steady growth, with projections indicating a market size of USD 332.85 billion in 2025, expected to grow to USD 985.80 billion by 2030 at a CAGR of 24.25%. The residential segment alone was projected to reach USD 283.55 billion in 2025 and USD 857.40 billion by 2030, with a CAGR of 24.77%.

However, the onset of the COVID-19 pandemic in 2020 brought significant challenges. Lockdowns led to halted construction activities and a near-halt in property transactions, as noted in various reports.

Surveys conducted across major cities, including Chandigarh, indicated a majority of buyers expected price corrections during this period, with a shift toward online property searches and virtual tours.

Post-Pandemic Recovery and Price Trends

Post-COVID, the real estate market in Chandigarh and its surrounding areas has shown signs of recovery and growth. Reports from 2025 suggest that the market has closed another strong year, with record-breaking leasing and sales and a growing appetite for new launches.

This recovery is particularly evident in the residential sector, with over 229,900 units sold across the op seven cities between January and September 2024, marking a 17% increase from 2023 and a 60% jump from 2019.

Specific data from real estate portals like 99acres.com and Housing.com provide detailed insights into price trends over the past five years. The following table summarizes the current prices and five-year growth for key localities:

This data, sourced from, indicates a consistent upward trend, with New Chandigarh showing an impressive 94.4% growth over five years, making it a standout for investors.

For the last three years, localities like Sector 50 Chandigarh (58.0%), Zirakpur (46.2%), and Sector 49 Chandigarh (42.1%) have also seen significant price appreciation, as per the same source.

This suggests that the recovery has been robust, with prices increasing again after any temporary stabilisation during the pandemic.

Driving Factors Behind the Increase

Several factors contribute to this upward trend. Infrastructure development plays a crucial role, with projects like the expansion of road networks, metro connectivity, and the establishment of IT parks boosting property values. For instance, Zirakpur’s proximity to the international airport and Mohali’s booming IT sector have attracted a young and dynamic population, increasing the demand for residential properties.

The resurgence of tier II and tier III cities in the post-pandemic period has also favored growth in economic activities, positively impacting the real estate sector across all asset classes.

Additionally, government initiatives like the Smart City project and the creation of IT parks have further stimulated demand.

Impact of COVID-19 and Market Sentiment

During the pandemic, the real estate market faced challenges, with a 30% decline in sales in the first quarter of 2020, as reported by JLL. However, the market has since rebounded, with buyers showing renewed interest, particularly in mid- and high-end segments.

The luxury and ultra-luxury segments have grown faster than affordable housing, comprising 16% of demand in 2024, up from 6% in 2019.

This recovery is also reflected in the changing preferences of buyers, with a shift toward properties offering more space and amenities, driven by work-from-home trends and a desire for better living conditions post-pandemic.

Implications for Investors and Homebuyers

For potential investors and homebuyers, the current trend of increasing prices presents both opportunities and challenges. Areas like New Chandigarh and Zirakpur, with high growth potential, are attractive for investment, especially given their significant price appreciation.

However, the rising prices also mean that entry costs are higher, and buyers should consider factors like rental yields and future appreciation potential.

For instance, Mohali offers high rental returns at 3.9%, while Zirakpur stands at 2.6%, making them viable options for investors seeking passive income. It is advisable to conduct thorough research and consult with real estate professionals to navigate this dynamic market effectively.

Conclusion

In conclusion, research suggests that real estate prices in Zirakpur, Mohali, Kharar, New Chandigarh, and Chandigarh are indeed increasing again after a temporary slowdown during the COVID-19 pandemic.

The evidence leans toward a strong recovery, driven by infrastructure development, increased demand, and economic growth. With significant price appreciation in key localities and a robust market outlook, these regions continue to be attractive for both investors and homebuyers as of February 28, 2025.