Ghaziabad Home Prices May Rise After Development Fee Hike

• Development fee in Ghaziabad raised from ₹2,500 to ₹4,170 per sqm

• Highest increase among major Uttar Pradesh districts

• Builders warn higher charges will be passed on to homebuyers

Ghaziabad: Purchasing a home or plot in Ghaziabad is likely to become more expensive following a steep hike in development charges announced by the Uttar Pradesh government. The revised fee structure reflects an increase of over 66 per cent, the sharpest among major districts in the state, and is expected to have a direct impact on property prices.

According to officials, the revised rates have been incorporated under the UP-amended Urban Planning and Development (Assessment, Levy and Collection of Development Fee) Rules. The new charges will formally come into force once they receive approval from the Ghaziabad Development Authority.

Explaining the change, GDA assistant engineer Rudresh Shukla said the development fee in Ghaziabad has been increased from ₹2,500 per square metre to ₹4,170 per square metre. He noted that this is now the highest development fee among leading districts in Uttar Pradesh.

“In cities such as Lucknow, Kanpur, and Agra, the development fee has been revised to ₹2,475 per square metre from ₹1,400 per square metre,” Shukla said, highlighting the contrast with Ghaziabad’s significantly higher rate.

The impact of the hike is already drawing concern from developers, who say the additional cost will inevitably be passed on to buyers. Ratnesh Goyal, a local real estate developer, explained that the increase will substantially raise upfront project expenses.

“Earlier, for a 100 square metre plot, we had to pay around ₹2.5 lakh as development charges to get layout approval from GDA. Now, that amount will exceed ₹4 lakh,” Goyal said. “This extra burden cannot be absorbed entirely by developers and will lead to higher prices for plots and flats.”

Some areas within the district had already seen revisions earlier. In Loni, Muradnagar, and Modinagar, development fees were increased from ₹1,200 per square metre to ₹1,510 per square metre. However, the latest hike for Ghaziabad city marks a far steeper jump.

Officials from the state government defended the move, citing Ghaziabad’s rapid urban expansion and infrastructure potential. According to Shukla, the decision was based on an assessment that Ghaziabad offers the highest growth prospects among areas governed by development authorities.

Real estate analysts believe that while the higher fees may strengthen infrastructure funding in the long run, the immediate effect will be felt by end-users. With developers factoring the increased charges into project costs, residential prices across Ghaziabad could see an upward revision in the coming months.

For homebuyers, especially first-time purchasers, the hike adds another layer of cost at a time when affordability is already under pressure due to rising construction expenses and interest rates. Industry experts advise buyers to factor in potential price increases when planning purchases in the district.