GDA Raises Commercial Property Rates, Approves Wave City Expansion Plan

The Ghaziabad Development Authority (GDA) has recently made two significant decisions – a hike in the reserve price of its commercial properties and the approval of the layout plan for Wave City.

Hiked Reserve Prices

The GDA has decided to increase the reserve price of its commercial properties in Indirapuram, Pratap Vihar, and Madhuban Bapudham housing scheme. The hike in prices is intended to recover the additional construction costs incurred for building EWS (Economically Weaker Section) flats. Previously, the reserve price of commercial properties in Indirapuram was Rs 1.5 lakh/sqm, but after the hike, it will become Rs 1,58,700/sqm. Similarly, in Pratap Vihar, the reserve price will increase from Rs 48,000/sqm to Rs 56,700/sqm. In Madhuban Bapudham housing scheme, the hiked reserve price will be Rs 84,300/sqm. The increase in prices is necessary for the GDA to raise Rs 27.1 crore to cover the additional cost of constructing EWS flats in 2010. The GDA had built 348 EWS flats in Pratap Vihar’s Sector 11 and 560 units in Rajendra Nagar’s Sector 2. As per the agreement, a portion of the construction cost was supposed to be borne by the state government, but the cost escalated over the years. It is now up to the GDA to recover the additional cost through this hike in commercial property prices. At present, the authority still has 31,500sqm of commercial properties to be sold.

Approval of Wave City Plan

The GDA Board, in the same meeting, also passed the Detailed Project Report (DPR) and layout plan of Wave City. This project is part of the state’s hi-tech township policy and will pave the way for approximately 5,000 homebuyers to get their flat registries. The approval comes after a high-powered committee of the Uttar Pradesh government, formed to investigate the issue, recommended approving the revised DPR on January 31st. Following the committee’s recommendation, the GDA Board gave the green light to the DPR. The issue surrounding Wave City dates back to 2009-10 when the Uttar Pradesh government had notified around 8,700 acres of land along NH-9 for the hi-tech township policy. In 2017, the Comptroller and Auditor General’s report raised objections over the GDA’s concessions to two developers, including the Wave Group, accounting for an estimated cost of the exchequer of Rs. 572 crore. In this amount, Rs. 401 crore was the calculated dues by the Wave Group. With these recent developments, the builders of Wave City have completed the development of half of the allotted area, thus allowing them to fulfill the possession handover to over 12,000 homebuyers.

The hike in the reserve prices of commercial properties by the Ghaziabad Development Authority and the approval of the Wave City layout plan are consequential moves for the real estate landscape in Ghaziabad. The commercial property price hike is a measure to recover additional costs, while the nod for the DPR of Wave City signifies progress in addressing the issues surrounding the project. These developments will undoubtedly impact both the real estate market and homebuyers in Ghaziabad.

Sumit Mondal Content Analyst at Square Yards
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