Ghaziabad's great housing discount: UP cuts prices by 25% on 10,000 unsold flats

The Housing Board’s inventory is concentrated in three major schemes: about 4,000 flats in Sidharth Vihar’s Ganga Yamuna and Hindon projects and another 4,000 in the Mandola housing scheme.


• UP govt cuts prices by up to 25% on 10,000 unsold flats in Ghaziabad
• Extra discounts offered for quick payments within 45, 60, or 90 days
• Premium charges capped at 5%, total add-ons limited to 12%

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In a significant move to address a mounting inventory crisis, the Uttar Pradesh government has sanctioned price reductions of up to 25% on nearly 10,000 unsold flats constructed by state authorities in Ghaziabad. The initiative, part of new statewide pricing guidelines, aims to expedite sales and standardise costs across development bodies.

The unsold stock comprises approximately 1,748 flats under the Ghaziabad Development Authority (GDA) and a staggering 8,000 units under the UP Housing Board.

The Housing Board’s inventory is concentrated in three major schemes: about 4,000 flats in Sidharth Vihar’s Ganga Yamuna and Hindon projects and another 4,000 in the Mandola housing scheme.

The push comes via the newly introduced ‘Model Costing Guidelines Basic Principles 2025’, designed to dispose of unsold inventories and eliminate pricing disparities between different development authorities and the housing board. A GDA official, cited by TOI, confirmed that following cabinet approval, principal secretary for housing and urban planning, P Guruprasad, has directed all authorities to implement the new rules.

Revised pricing and payment incentives



Under the revised costing model, which factors in land acquisition, development charges and construction costs, the per-unit price is projected to fall by roughly a quarter. “The revised costing… is expected to lower the per unit prices by up to about 25% compared with existing rates,” the official stated.

Beyond this substantial base price reduction, the policy introduces additional rebates to encourage swift payment. Buyers making a one-time payment within 45 days will receive a 6% discount, while those paying within 60 and 90 days will get rebates of 5% and 4%, respectively.

The guidelines also impose stricter caps on premium charges for desirable features. Flats with corner plots, parking-facing views or frontage on 18-metre-wide roads will now attract a premium capped at 5%, a significant reduction from the previous range of 8% to 10%. Crucially, the combined total of all premium add-ons cannot exceed 12% of the original cost.

Inventory spanning market segments



The current unsold inventory covers a broad spectrum of the housing market. GDA’s stock, which includes everything from Economically Weaker Section (EWS) units to larger homes, has prices ranging from Rs 5.7 lakh for an EWS flat to Rs 69.4 lakh for various 1, 2 and 3 BHK configurations.

The UP Housing Board’s flats are priced at a higher tier, with a 1 BHK listed at Rs 69.4 lakh, a 2 BHK at Rs 87 lakh and a 3 BHK at Rs 1.1 crore. In a measure aimed at affordability, the rate of interest on EWS and Lower Income Group (LIG) category flats has been fixed at 8%.

A strategic clearance drive



This sweeping policy intervention underscores the state government’s urgent focus on liquidating a substantial public housing backlog that has languished unsold. By coupling direct price cuts with time-bound payment incentives and controlled premium pricing, authorities are crafting a multi-pronged strategy to attract buyers.

The success of this clearance drive in Ghaziabad, a key satellite city of the National Capital Region, will be closely watched as a potential model for similar exercises across Uttar Pradesh.