The Uttar Pradesh government has further reduced development and building permit fees in several districts, including Ghaziabad, offering some relief to property owners and developers. In January, the development fee in Ghaziabad was raised from Rs 2,500 per square meter to Rs 4,170 per square meter. Under the new order, it has now been marginally cut to Rs 4,165 per square meter.
Highest fee in the state
In January, Ghaziabad saw the highest hike, at over 66 percent increase. Even with the recent decrease, the city still has the highest development fee in the state. According to a Ghaziabad Development Authority (GDA) official, the fee has been slashed to Rs 1,450 per square meter from the previous Rs 1,510 per square meter in Loni, Muradnagar, and Modinagar.
New rates across districts
As per the new rates, the fee is down to Rs 2,462 per square meter in Lucknow, Kanpur, and Agra, while it is set at Rs 1,510 per square meter in Varanasi, Prayagraj, and Moradabad. In the rest of the districts, the fee has been slashed to around Rs 1,020 per square meter to Rs 603 per square meter. In the case of residential plots up to 100 square meters and commercial plots up to 30 square meters, it has been slashed by 50 percent.
Government's rationale
“Ghaziabad was assessed to have the highest growth potential, compared to other areas under development authorities. With Namo Bharat, metro, airport, and a network of highways in the vicinity of Ghaziabad, the state government, through the development fee, intends to cash in on it, and in turn the revenue generation will only add to enhanced civic infrastructure,” said the official. Development fee is a major source of revenue for all development authorities, which they charge in lieu of civic amenities. Under all revenue generation heads, the development fee alone accounted for the highest revenue generation for GDA in fiscal year 2024-25.
Mixed reactions from developers
“There is some respite for small plot owners and developers under the residential and commercial category, but for big developers the lowering rate is very nominal and overall it won’t make much of a difference,” said Ratnesh Goyal, a developer. The reduction is seen as a step to balance growth and affordability, though large-scale developers may not benefit significantly.
