The commercial property market in Mohali has increased significantly over the last 10 years. Compared to Chandigarh, where commercial property is costly, making it difficult to establish a retail shop, Mohali provides lower entry points for businesspeople who are interested in having a physical retail presence.
The city is no longer merely a satellite town. It now hosts IT parks, hospital clusters, and university campuses, which did not exist 15 years ago. This has boosted the purchasing power of a significant number of people across different groups, which benefits the retail industry.
Why Location Still Trumps Everything
The cost of space on Airport Road ranges between Rs 18,000 and Rs 28,000 per square foot. This premium pricing reflects the strategic advantage these locations offer to brands requiring maximum exposure. BMW, Mercedes, and several luxury furniture brands positioned themselves here for reasons beyond prestige. The customer profile matches their target market, and footfall statistics justify the high price.
Sectors 82, 83, and 88 fall within the middle price bracket of Rs 10,000 to Rs 16,000 per square foot. These areas experienced rapid growth from 2018 to 2023. The amenities are decent, parking is convenient, and you don’t need to pay the extra premium for Airport Road. Many mid-market retailers and service businesses perform well here.
The Kharar-Landran corridor starts around Rs 7,000 per square foot. There’s a catch, though: infrastructure remains patchy in sections. Some stretches lack proper drainage, and the power supply can be erratic during monsoons. But investors who bought here five years ago have seen 8–12% annual appreciation despite these issues. The bet is on future infrastructure improvements, which municipal plans do support.
Phase 11 and adjacent markets cater primarily to local residential demand. Prices are lower, competition is different, and you’re not dependent on customers driving in from other areas. Residential property in Mohali offers stable, community-focused investment opportunities.
What’s Actually Available
Most commercial complexes offer 500–2,000 square foot ground floor units. These come with shared amenities like car parking, lifts, power backup, and security. Maintenance charges run Rs 8–15 per square foot monthly. Check what that covers exactly, because ‘maintenance’ means different things to different developers.
Standalone buildings give you control but require deeper pockets initially. A 5,000 square foot independent property in a decent location will cost you substantially more than the equivalent space in a complex. You’re responsible for everything, like security, maintenance, repairs, and property taxes.
Some developers are building multi-level showrooms with basement parking. These are good for automobile dealers or businesses needing 10,000+ square feet. Construction quality varies significantly, however.
The Money Side
The purchase price is straightforward. Registration costs a further 7–8% on top. Then there are GST implications depending on the property type and whether it’s under construction or ready. Legal fees add another 1–2% if you’re using proper legal counsel, which you should.
Annual property tax in Mohali’s commercial zones runs 0.8–1.2% of the assessed property value. That’s not insignificant when you’re looking at crore-plus properties. Monthly maintenance for commercial complexes averages Rs 8–15 per square foot. Multiply that by 1,000 square feet, and you’re looking at Rs 8,000–15,000 monthly before you’ve sold a single product.
Check the property papers carefully. Find out who owned the property for the last 30 years. If the seller shows you approval certificates from the Greater Mohali Area Development Authority, call their office to confirm that these are real. Check if the previous owner paid all taxes. If there’s any court case on the property, don’t buy it. Court cases can take many years to resolve.
What’s Happening in the Market
The IT sector is growing in Mohali. Companies are signing long leases and moving here because it’s cheaper than other places. This creates sustained demand for retail and services nearby. When 5,000 IT professionals work within two kilometres of your showroom, that changes your customer acquisition costs significantly.
But here’s what estate agents won’t emphasise: certain sectors in Mohali face oversupply. Too many similar commercial complexes came up simultaneously in some areas, and now vacancy rates are higher than developers expected. This hasn’t tanked prices yet, but it’s suppressed appreciation in those pockets.
E-commerce continues to affect retail categories differently. Consumer electronics showrooms are struggling more than automobile dealerships or furniture stores. If your business model depends heavily on walk-in customers for products easily compared online, factor that into your location and pricing calculations.
What to Actually Check
Visit potential properties at different times. A location that’s packed at 11 AM on Tuesday might be empty by 6 PM or on Sundays. Your business hours matter here. If you’re targeting weekend customers, see what weekend traffic actually looks like.
Look at the surrounding businesses honestly. Are they complementary or competitive? A furniture showroom near the kitchen and bath fitting stores makes sense. Another furniture showroom right next door splits your potential market.
Power supply deserves more attention than most buyers give it. Check the transformer capacity and ask neighbouring businesses about outages. Some areas in Mohali face regular supply issues during summer, and running generators constantly isn’t cheap.
Parking adequacy matters more than it did even five years ago. Customers expect convenient parking now. Properties without adequate parking either struggle with occupancy or can’t maintain premium pricing.
How to Proceed
Hire a commercial property consultant who’s actually completed multiple deals in Mohali. Their 1–2% fee is worth it for avoiding costly mistakes. They’ll spot issues you wouldn’t notice and can negotiate better terms than you’d get independently.
Structure payments carefully. Never release full payment before possession and clear title transfer. Link instalments to documentation milestones. This protects you if problems emerge midway through the transaction.
Budget beyond the property cost. Showroom fit-out, licensing fees, initial inventory—these expenses accumulate quickly. Ensure you’ve got sufficient working capital after property purchase to actually run the business.
The Bottom Line
Mohali offers genuine opportunities for commercial property buyers who do their homework. The city’s growing demographics support retail across categories, and infrastructure continues improving.
But opportunities don’t mean guarantees. Properties in wrong locations or purchased at inflated prices will underperform regardless of overall market growth. Success requires matching your specific business requirements with appropriate locations, conducting thorough due diligence, and negotiating fair terms.
This is where SmartKey Realty can help. We provide independent property verification, conduct detailed site assessments, and help you analyse actual market data, not promotional materials. Our team assists with location matching based on your business needs, price benchmarking against current rates, and negotiating fair terms with developers.
