There is no residential housing permitted directly on or immediately adjacent to the Sukhna Lake premises, due to its status as a protected wetland and public recreational space.
However, the lake is bounded by some of Chandigarh's most affluent and highly sought-after residential neighborhoods, known locally as "Sectors." Sectors 3, 4, 5, 8, and 9 are located just south and west of the lake. These sectors feature large, heritage single-family homes, often occupied by senior government officials, bureaucrats, and wealthy business families. Real estate in the immediate vicinity of the lake commands some of the highest property values in northern India.

