Ghaziabad: GDA flats and group housing plots to cost lesser
The officials said the cost will be brought down by reducing the supervision and administrative charges — 15% each, added to the total cost of land and construction.Updated: Aug 02, 2019 19:01 IST
The officials of the Ghaziabad Development Authority (GDA) have decided to lower the price of unsold as well as new flats in their housing schemes with retrospective effect. The officials said they had initially planned to lower the cost of only unsold inventory, but now they have planned to lower it for upcoming flats and planned plots meant for group housing as well.
The officials said the cost will be brought down by reducing the supervision and administrative charges — 15% each, added to the total cost of land and construction. The officials said the costing is being worked out by the officials of the engineering department.
The authority levies administrative charges on cost of flats to meet costs of salaries, wages, office maintenance etc.
The supervision charges were earlier levied by the authority when workmates were hired on a contractual basis for supervision of projects. However, the workmates were regularised in 2011 but the supervision charges continued. The supervision charges are also levied in cases where the authority gets inspections done for its projects or seeks specified reports from third parties.
“The proposal will be taken to the GDA board for approval. We plan to reduce the administrative charges by 10% and the supervision charges by 2%. The reduction will also have an impact on the cost of flats. In all, we have planned to reduce charges by 12%. The reduced cost will be for all flats in multi-storeyed buildings and also with retrospective effect, if the flats are unsold,” Kanchan Verma, vice-chairperson, GDA, said.
“The decision was taken up in view of a slump in the property market and also due to fact that multi-storeyed buildings are costly to maintain. The auditors will also have no objection in the reduction as other development authorities in the state have also done the same. The reduction will be applicable to old, new and unsold housing inventory,” Verma said.
At present, the authority has about 395 properties which are up to 2,000 square metres while it has another 48 properties which are over 2,000 square metres in area. The valuation of unsold properties is estimated to be around ₹1,600 crore at present.
Verma said the reduction will also be applicable to category of plots meant for group housing schemes.
“The reduction will be for group housing plots for which planning has already been done. There are plots where we have not planned the layouts as of now. So the reduction will be determined at the time when the authority goes for layout planning of such plots. The reduction in prices will be applicable only for residential flats, and not for commercial buildings,” Verma said.