The Uttar Pradesh government has launched a major initiative to tackle a significant inventory of unsold housing units in Ghaziabad. The plan involves offering discounts of up to 25% on nearly 10,000 flats constructed by the Ghaziabad Development Authority (GDA) and the UP Housing Board that have remained unsold.
New Guidelines to Standardize Pricing and Boost Sales
This push is being executed through the newly introduced Model Costing Guidelines Basic Principles 2025. The primary objectives of these guidelines are to dispose of the accumulated unsold stock of flats and plots and to bring uniformity in pricing across all development authorities and the housing board in the state. Previously, there was a noted lack of consistency in how different authorities calculated the cost of flats and plots.
Following the state cabinet's approval, Principal Secretary (Housing and Urban Planning) P Guruprasad issued directives to all development authorities to implement these new guidelines. A GDA official explained that the revised costing model will comprehensively factor in land acquisition rates, external and internal development charges, and construction costs. This recalculation is expected to reduce the per-unit price by up to approximately 25% compared to the existing rates.
Breakdown of Unsold Inventory and Discount Structure
The scale of the unsold inventory is substantial. The GDA has 1,748 unsold flats spread across five different housing schemes. The UP Housing Board's situation is more pronounced, with around 8,000 unsold units in Ghaziabad alone. This stock includes about 4,000 units in Sidharth Vihar's Ganga Yamuna and Hindon schemes and another 4,000 in the Mandola housing scheme.
The discount mechanism is multi-layered. Apart from the foundational 25% reduction on the base price, the guidelines incentivize faster payments with additional rebates: 6% for a one-time payment within 45 days, 5% within 60 days, and 4% within 90 days.
Furthermore, premium charges for specific unit types have been capped more tightly. Flats and plots with desirable features like corner location, parking-facing views, or frontage on 18-metre-wide roads will now be priced only 5% higher, compared to the earlier premium range of 8% to 10%. However, the official clarified that if a unit qualifies for all three premium categories, the maximum additional charge will not exceed 12% of the original cost.
Pricing Spectrum and Key Financial Terms
The current price range for GDA's unsold stock is wide, reflecting different categories. It spans from Rs 5.7 lakh for Economically Weaker Section (EWS) units to Rs 69.4 lakh for larger homes across schemes offering 1, 2, and 3 BHK configurations, as well as mini LIG and LIG flats.
The Housing Board's inventory is priced at a higher bracket. Here, a 1 BHK flat is listed at Rs 69.4 lakh, a 2 BHK at Rs 87 lakh, and a 3 BHK at Rs 1.1 crore. In a significant move for affordable housing, the guidelines have also fixed the rate of interest on EWS and LIG category flats at 8%.
This comprehensive policy intervention aims to make housing more accessible, clear stalled inventory, and inject liquidity into the region's real estate sector by standardizing costs and offering tangible financial benefits to potential buyers.
