Effective govt policies drive 53% growth in Uttar Pradesh real estate

Investor’s confidence rises in Uttar Pradesh, 309 projects registered in one year

Improved township policy boosts capital investment from Rs 44,000 crore to Rs 68,000 crore

Development of religious tourism accelerates real estate growth, investors also turning towards smaller cities

Lucknow, January 2026 : The improvement in the township policy by the Uttar Pradesh government under the leadership of Chief Minister Yogi Adityanath is reflecting in the form of unprecedented growth in the real estate sector of the state.

According to a report released by the Uttar Pradesh Real Estate Regulatory Authority (UP RERA), capital investment worth Rs 68,328 crore was made in the real estate sector in the year 2025, compared to Rs 44,526 crore in 2024.

This marks a remarkable increase of 53.5 percent in investment. A record 309 projects were registered in the state during the past one year, clearly indicating strong investor confidence in the policies of the Uttar Pradesh government.

In the previous years, the government amended the township policy and removed the conditions requiring builders to develop townships only on a minimum area of 25 acres.

Instead, builders were allowed to develop townships on a minimum area of 12.5 acres. Along with this, the new township policy also safeguarded the interests of allottees.

Under the revised provisions, townships spread over 25 acres are required to be completed within three years, while townships larger than this must be completed within a maximum period of five years.

Earlier policies had resulted in several projects remaining incomplete even after 8 to 12 years, leading to the allottee’s funds getting stuck. The changes introduced in the township policy have proved to be a relief not only for investors but also for allottees.

Since long, the National Capital Region played a dominant role in Uttar Pradesh’s real estate sector. However, the figures for 2025 show that investors are now increasingly focusing on non NCR districts and smaller cities of the state as well.

Out of a total of 308 projects registered in 2025, 122 projects were approved in the NCR, while 186 projects were approved in non NCR areas.

This clearly highlights the positive impact of infrastructure development, improved connectivity and the expansion of tier 2 cities undertaken by the Uttar Pradesh government on the real estate sector.

The state capital Lucknow emerged as a major hub during the past year, with 67 projects registered. Among other cities, Bareilly saw 15 projects and Agra recorded 14 registered projects.
Builders are also investing in new projects in cities such as Bulandshahar, Rampur, Chandauli, Unnao, Gonda, Mau and Mirzapur, indicating the widening geographical spread of real estate development across the state.

Rising religious tourism in Uttar Pradesh has also contributed significantly to the expansion of real estate investment in these cities.

In Mathura, the birthplace of Shri Krishna, 23 projects were registered in 2025. In Ayodhya, the birthplace of Shri Ram, five projects were registered, while nine projects were registered in Varanasi, home to Baba Kashi Vishwanath, and seven projects in Prayagraj, the city of the Sangam.

With the efforts of the Uttar Pradesh government, these cities are emerging as major real estate development centres, supported by improved connectivity, urban redevelopment initiatives and a continuous increase in the number of devotees and tourists from across the country and abroad.