Chandigarh administration has moved to permit the city’s first high-rise housing in Phase Three as part of a broader strategy to manage growing residential demand in the union territory periphery. The plan identifies Phase Three and adjoining peripheral areas as locations where taller residential buildings will be allowed to increase supply without encroaching on established central sectors. City planners and the Chandigarh administration have framed the proposal within a revision of the master plan to ensure land use, infrastructure and service provision are aligned with higher density development. The envisaged changes include alterations to building bye-laws, height limits and permissible floor area ratios to enable multi-storey residential towers while preserving key open spaces and sector layouts. Officials have indicated that peripheral towns and satellite localities around Chandigarh will absorb a significant share of new housing projects, thereby reducing pressure on existing sectors and housing markets nearer the city core. Infrastructure upgrades for water, sewerage and road connectivity are planned to accompany residential approvals to avoid overstretching municipal services. Authorities cite limited developable land within the city grid and persistent household formation as drivers for the shift towards vertical housing in Phase Three, while stressing that the approach forms part of a managed urban growth strategy. The move is presented as a way to improve housing choice and potentially moderate prices by increasing supply in locations that can be serviced more efficiently. Transport links to the periphery will be prioritised to ensure commuting times and accessibility do not undermine the benefits of dispersed development. The administration has indicated that environmental assessments and stakeholder consultations will precede final approvals to address concerns over livability and infrastructure capacity. Planners signalled that policy adjustments will be phased and monitored to maintain sector identities and public amenities as building patterns change. The proposal is positioned as an attempt to balance conservation of the city plan with the need to meet contemporary housing demand in the region.