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UP Extends 20-25% Discount On Flats And Plots: Great News For Home Buyers

Homebuyers in UP will soon benefit from reduced prices of flats developed by housing authorities, with cuts expected between 20 to 25 percent.

Edited By : Palak Parashar | Updated: Jun 14, 2024 13:15 IST
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Yogi Aditya Nath

Authorities and housing developers in various cities of UP are set to decrease flat prices by 20 to 25 percent, following new guidelines prepared for this purpose. The committee, chaired by LDA Vice President Dr. Indramani Tripathi, has submitted the report to the government. The guidelines will be implemented in the entire state upon approval by the cabinet and the Chief Minister.

Currently, property prices in UP are determined based on casting guidelines established in 1999, which include additional charges that inflate property costs. State authorities impose a 15 percent contingency and 15 percent overhead charge on HIG, MMI, and MIG category houses. LIG category houses incur a 15 percent contingency and 12.50 percent overhead charge, while EWS category houses face a 15 percent contingency and 10 percent overhead charge. The committee led by the LDA Vice President has proposed significant revisions to these guidelines. They recommend reducing the contingency fee for HIG, MIG, and MMIG houses by 8 percent and lowering the overhead charge by 7.50 percent.

There are plans to lower interest rates on plots and land plots. Proposed rates include 7% for EWS and LIG categories, 8% for MIG, 9% for HIG, and 11% for commercial building plots. These rates will fluctuate based on bank interest rate changes. An additional 2% interest will apply for late payments.

The suggestion is to avoid freehold charges on building construction costs for leasehold buildings, in addition to land charges.

After three years, any houses or flats that remain vacant for more than 50 units will be designated as unpopular. Additionally, there will be provisions such as a 6% discount for lump sum payments made within 45 days and a 5% discount for full payments within 60 days.

Amendments Made In The Costing Process 

Currently, the Building Construction and Development Bye-laws 2016 allow additional FAR to be added to plots to raise their value. To mitigate this, it has been proposed to cap the price based on a maximum of 1.5 FAR.

Deepak Singh, the Finance Controller of LDA, announced that casting guidelines aimed at lowering prices of flats and plots have been submitted to the government. On June 11, a meeting was convened by Additional Chief Secretary Housing Nitin Ramesh Gokarna regarding this matter. Once approved by the cabinet, the guidelines will be enforced statewide.

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First published on: Jun 14, 2024 01:15 PM IST

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