Haryana Government’s Major Move Expected to Drive Up Land Prices

In a significant decision, the Haryana government has approved an increase in External Development Charges (EDC), which is expected to drive up land prices across the state. The move is set to impact the real estate sector, making properties more expensive for potential buyers while simultaneously benefiting the state’s infrastructure development.
As per the new policy, the government has decided to raise the EDC by 20% until 2025, with an annual increase of 10% starting from 2026. The decision aims to boost the collection of funds that will be allocated to infrastructure projects, such as roads, sewage lines, water systems, and power networks, in various real estate areas. These are the critical external facilities required for the development of residential and commercial properties.
This decision is expected to increase the cost of real estate development, as developers will face higher charges for external infrastructure. As a result, the prices of properties in Haryana are likely to rise, making land investments more costly. However, this increase in EDC will significantly help the state government finance infrastructure projects and improve the overall development landscape.
The state cabinet approved a one-time increase of 20% in EDC, effective from January 1, 2025. Following this, the EDC will be incremented by 10% every year on January 1. These charges, collected from real estate developers, are meant for the construction of external infrastructure like roads, drains, electricity, and water supply systems, outside the boundaries of individual projects.
This change is expected to have a dual impact: while it may push property prices higher in the short term, it will also contribute to long-term infrastructural growth in Haryana. The move aims to strike a balance between the real estate sector’s expansion and the state’s evolving infrastructure needs.