Uttar Pradesh plans to offer up to 25% discount to vacate 10,000 unsold flats in Ghaziabad

GHAZIABAD: The UP government is planning discounts of up to 25% to clear the inventory of nearly 10,000 unsold flats built by the Ghaziabad Development Authority (GDA) and UP Housing Board in the city.The impetus comes via the Model Costing Guidelines Basic Principles 2025, introduced to divest unsold stocks of apartments and plots and standardize prices across development authorities and housing associations.

There are 1,748 unsold apartments built by GDA, spread over five housing projects.

The Housing Board, meanwhile, has about 8,000 unsold units in Ghaziabad alone; about 4,000 in Sidharth Vihar’s Ganga Yamuna and Hindon schemes and another 4,000 in the Mandola housing scheme.

There was a lack of uniformity among development authorities on the cost of apartments and plots.“To put an end to this, the UP government has introduced the guidelines. After Cabinet approval, Principal Secretary (Housing and Urban Planning) P. Guruprasad issued instructions to all development authorities to implement the new guidelines,” a GDA official said.

The official said the revised cost calculation will take into account land acquisition rates, external and internal development costs and construction costs, and unit prices are expected to drop by about 25% compared to existing rates.

In addition to the 25% discount on the base price, the guidelines provide further discounts for faster payment: 6% for a one-off payment within 45 days, 5% within 60 days and 4% within 90 days.

The premium costs are also more strictly capped. Flats and plots, such as corner houses, parking-side apartments and houses on 18-metre-wide roads, will be priced 5% higher, with the cap set at 5%, compared to the earlier 8% to 10%, the official said. However, for all three benefits together, the maximum additional cost does not exceed 12% of the original price. The interest on EWS and LIG apartments has been set at 8%, among other things.

For GDA, where the unsold stock includes categories from EWS to larger houses, the per unit cost currently ranges from Rs 5.7 lakh for EWS units to Rs 69.4 lakh for schemes offering 1, 2 and 3 BHK as well as mini-LIG and LIG apartments. The Housing Board’s inventory is priced higher: a 1 BHK is listed at Rs 69.4 lakh, a 2 BHK at Rs 87 lakh and a 3 BHK at Rs 1.1 crore.

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