UP Property Costs Skyrocket! 90% Hike in Development Fees | New Rates for 30 Cities

The cost of building a home or launching a commercial project in Uttar Pradesh is set for a significant spike. The State Housing and Urban Planning Department has approved a major revision in development charges across 30+ major cities. This adjustment, effective January 2026, marks the first significant hike in nearly a decade. Officials state that the old fee structure was no longer sustainable given the rising costs of raw materials like cement, steel, and fuel, as well as the increased expenditure on labor and urban infrastructure maintenance.

City-Wise Impact: Where the Burden Falls HeaviestThe hike is not uniform across the state but ranges from a minimum of 50% to as high as 90% in specific tier-2 and tier-3 growth hubs.

• NCR Focus (Ghaziabad): The rate has jumped from ₹2,500 to ₹4,170 per square meter, a 67% increase. This will directly affect the pricing of new apartments and individual plotted developments in the NCR belt.
• State Capital & Industrial Hubs (Lucknow, Kanpur, Agra): Fees have risen from ₹1,400 to ₹2,475 per square meter, representing a 77% hike.
• Emerging Growth Cities (Varanasi, Prayagraj, Meerut, Bareilly): These cities saw the most dramatic surge, with rates climbing from roughly ₹800–₹900 to ₹1,510 per square meter, a staggering 90% increase.

Strategic Justification and Infrastructure GoalsThe Uttar Pradesh government earned approximately ₹12,740 crore from housing authorities last fiscal year. With the new rates, this revenue is expected to climb significantly. According to P. Guruprasad, Principal Secretary of the Housing Department, the incremental funds are earmarked for specific urban upgrades:

• Road & Drainage: Modernizing the road networks in rapidly expanding city outskirts.
• Smart Utilities: Upgrading sewer lines, water supply systems, and street lighting.
• Planned Expansion: Funding the land acquisition and initial infrastructure for new townships.

Impact on Homebuyers and BuildersFor individual plot owners, the cost of getting building plans sanctioned has effectively doubled in many districts. For larger developers, these "input costs" are likely to be passed on to the end-consumer. Prospective buyers in the "mid-budget" segment in cities like Kanpur and Lucknow may see a 3–5% increase in total unit prices as a direct result of these revised levies.