The Uttar Pradesh government has implemented a massive increase in the development fee for Ghaziabad, marking the steepest hike among all districts in the state. The fee has been raised by over 66%, a move officially aimed at developers but one that will inevitably have a direct financial impact on homebuyers across the district.
Details of the Steep Fee Hike
The revised rates have been incorporated into the amended Uttar Pradesh Urban Planning and Development (Assessment, Levy and Collection of Development Fee) rules. According to GDA assistant engineer Rudresh Shukla, the development fee has been escalated from Rs 2,500 per square metre to Rs 4,170 per square metre. The new rates will formally come into effect after receiving approval from the Ghaziabad Development Board.
Shukla highlighted that Ghaziabad's new fee is now the highest when compared to other major districts. For instance, in cities like Lucknow, Kanpur, and Agra, the development fee was increased to Rs 2,475 per square metre from Rs 1,400 per square metre. Previously, areas like Loni, Muradnagar, and Modinagar had also seen their fees rise to Rs 1,510 per square metre from Rs 1,200.
Direct Impact on Developers and Homebuyers
The substantial hike will translate into significantly higher costs for obtaining necessary approvals for construction projects. Ratnesh Goyal, a local developer, explained the practical implications. "Earlier, for a 100 square metre plot, we had to pay approximately Rs 2.5 lakh as a development fee to get the map layout approved from GDA. Now, we will have to pay more than Rs 4 lakh," he stated.
Goyal warned that this extra financial burden on developers will have a cascading effect on end consumers. The additional cost is likely to be passed on to homebuyers, resulting in increased prices for both residential plots and flats throughout Ghaziabad. This comes at a time when the real estate market is already sensitive to input cost inflation.
Rationale Behind the Decision
When questioned about the reasoning for such a sharp increase, GDA official Rudresh Shukla pointed to the district's growth prospects. He stated that Ghaziabad's growth potential was assessed to be the maximum compared to other areas under various development authorities in the state. The implication is that the fee hike is intended to fund the enhanced infrastructure and development needs expected from this rapid growth.
The decision underscores the government's focus on leveraging Ghaziabad's strategic position in the National Capital Region (NCR) for revenue generation. However, it also raises concerns about affordability for prospective homeowners and the overall cost of living in one of Uttar Pradesh's most dynamic urban centres.
