Amid a looming inventory crisis in Uttar Pradesh, the state government led by Chief Minister Yogi Adityanath has approved significant price reductions of up to 25 per cent on approximately 10,000 unsold flats built by the authorities in Ghaziabad. With the aim of expediting sales and standardising costs across development bodies, the UP government has slashed prices. The move comes as almost 8,000 units under the UP Housing Board remain unsold, while 1,748 flats under the Ghaziabad Development Authority (GDA) have also failed to find takers.
Flats available in these locations
The Housing Board’s inventory is comprised of flats built under three major schemes, including 4,000 flats in the Mandola housing scheme, along with 4,000 flats in Sidharth Vihar’s Ganga Yamuna and Hindon projects.
The government recently introduced ‘Model Costing Guidelines Basic Principles 2025,’ a move specifically designed to dispose of unsold inventories while simultaneously eliminating pricing disparities across different development authorities and the housing board in the state.
A Times of India report quotes a GDA official to confirm that after the cabinet approval, the principal secretary for housing and urban planning, P. Guruprasad, has issued directions to all authorities to implement the new rules.
New model to bring prices down
The new costing model takes into consideration construction costs, development charges, and land acquisition. The revised model is likely to bring the prices down by roughly a quarter.
The official said, “The revised costing… is expected to lower the per-unit prices by up to about 25% compared with existing rates.”
Along with a considerable price reduction, the revised policy will also bring additional rebates to encourage swift payment. Those buyers who make a one-time payment within 45 days will receive a 6% discount, while those making payments within 60 and 90 days will get rebates of 5 per cent and 4 per cent, respectively. Additionally, the latest guidelines also impose stricter caps on premium charges for desirable features.
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