Good news for those who are looking for houses in Uttar Pradesh. The state government will soon implement a new costing guideline that could bring down flat prices by 20 to 25% across the state including Noida-Greater Noida. This might revive the real estate and housing market of Uttar Pradesh as well; easy home buying for the middle class is expected with a substantial increase in the real estate sector also being forecasted.

The Costing Guideline was Framed in 1999

At present, property rates in Uttar Pradesh is fixed on the cost guideline which came into existence in 1999. Under this system, several charges have been included which only add up to the price of property such as 15% contingency amount and 15% overhead charge by the State’s authorities on the basic cost of HIG, MMIG & MIG category houses.

 

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Recommendations of Committee

It proposes to cut these charges heavily. The committee constituted under the chairmanship of Vice President LDA has suggested reducing the contingency fee by 8% and overhead charge by 7.50% for HIG, MIG & MMIG houses which should bring significant reduction in flat prices.

Building Plot’s Interest Rates Should Also Be Reduced

This proposal does not confine itself only to flats but it also suggests about bringing down the interest rates on plots and buildings over there as well. As per new guidelines, EWS and LIG categories at a rate of interest @7%, MIG @8%, HIG @9%, and commercial building plots @11%(these rates will be variable according to bank interest rates) should be charged. Moreover, freehold fees should not be charged on the construction cost of buildings on leasehold lands too so if all these suggestions come into action then this will prove very beneficial for those who want to purchase flat