Uttar Pradesh Real Estate Soars 53%: Policy Reforms and Religious Tourism Drive Growth

The Uttar Pradesh government’s revised township policy and broader real estate reforms are showing strong results, with capital investment in the sector rising sharply over the past year.

According to a report released by the Uttar Pradesh Real Estate Regulatory Authority, investments in the state’s real estate sector touched Rs 68,328 crore in 2025, up from Rs 44,526 crore in 2024. This represents an increase of about 53.5 percent. The authority said 309 projects were registered during the year, reflecting growing investor confidence in the state’s policy framework.

“Pro-government policies, especially the revised township policy and faster regulatory clearances, have significantly improved ease of doing business in real estate. This is directly reflected in the sharp rise in investment and project registrations,” Indu Prakash Sharma, of Trio Vision Infra told this reporter.

The surge follows key amendments to the township policy, under which the minimum land requirement for developing townships was reduced from 25 acres to 12.5 acres. The revised policy also introduced stricter timelines for project completion to protect the interests of homebuyers. Under the new norms, townships spread over 25 acres must be completed within three years, while larger projects have a maximum completion period of five years.

Earlier, several large projects had remained stalled for eight to twelve years, leading to buyers’ funds being locked up. Officials said the new provisions have brought relief to both investors and allottees by improving project viability and ensuring faster delivery.

While the National Capital Region has traditionally dominated Uttar Pradesh’s real estate landscape, 2025 data indicates a clear shift towards non-NCR districts and smaller cities. Of the total projects registered during the year, 122 were in the NCR, while 186 were approved in non-NCR areas.

The trend underlines the impact of infrastructure expansion, improved connectivity, and focused development of tier two cities. Lucknow emerged as a major hub with 67 projects registered. Bareilly recorded 15 projects and Agra 14. New investments were also seen in Bulandshahar, Rampur, Chandauli, Unnao, Gonda, Mau, and Mirzapur, pointing to a wider geographical spread of real estate activity across the state.

Religious tourism has also played a significant role in driving real estate growth. Mathura saw 23 projects registered in 2025. Ayodhya recorded five projects, Varanasi nine, and Prayagraj seven.

“The large-scale redevelopment of Ayodhya, Varanasi, and Mathura, along with a sharp rise in religious tourism, has created strong demand for housing, hospitality, and commercial projects,” Vishal Singh, a government spokesman said. “These cities are no longer just pilgrimage destinations. They are fast emerging as new real estate growth centers.”

Real estate developers say the broader improvement in the state’s investment climate has played a crucial role in changing perceptions about Uttar Pradesh.

“Over the last few years, there is a very positive vibe about Uttar Pradesh. Earlier, many big investors were not willing to come here. Now you can see major names entering the state, whether it is large housing projects, logistics parks, industries, or townships,” said Amit Srivastava, CEO of BBD Viraj Group and a member of CREDAI.

He pointed to infrastructure upgrades such as new expressways, including the Lucknow-Delhi connectivity, as well as improvements in electricity supply, law and order, and ease of doing business, which have contributed to UP’s march to prosperity.

“One of the most transformative decisions has been allowing land-use conversion through development authorities. Earlier, this process was with the Revenue Board and used to take a very long time, which was not business-friendly. Now approvals are faster, and that has unlocked a lot of stalled and new investments,” Srivastava said.

Officials said improved connectivity, urban redevelopment programmes, and a steady rise in tourist and devotee footfall are helping these cities emerge as new centers of real estate development in Uttar Pradesh. They hope that the state will maintain strong momentum in the coming years.