₹ 7.3 Lakh Crore Real Estate Investment Sets Up Uttar Pradesh’s $1 Trillion Economy Blueprint

Real estate post-Covid is on a phenomenal run. Housing sales are up the sky with new benchmarks continuously breached. Commercial properties in top-tier cities are witnessing a surge in demand. Multiple surveys conform with the trend that the sector is emerging as the top choice for investors across the board.

That narrative just got another shot in its arm from the Uttar Pradesh govt. as it pledged real estate investments worth ₹ 7.3 lakh crore in the next five years.

So, the question is how does it all work out?

The answer lies in a $1 trillion economic blueprint where the government of Uttar Pradesh plans urban development in partnership with private real estate players. As many as 64 lakh residential properties across HIG, MIG, LIG and EWS segments have been planned out.

The average cost of construction is expected around ₹1,500 per square foot. Private players shall account for as much as 65% of the total development costs with the remaining 35% coming from govt. authorities. 

It would require 75,000 acres of land for this roadmap to see the light of day. Statistics suggest about 32,000 acres of that is already under state ownership, leaving a deficit of about 43,000 acres to be met through an acquisition plan over multiple phases.

The real estate sector accounted for 14.4% of the state Gross State Domestic Product (GSDP) in 2020-21. To the government, that is a natural incentive to fuel the sector with wider growth, employment, and development opportunities. The blueprint is said to hold big-ticket measures injecting its real estate ecosystem with new, innovative growth opportunities.  

The plan intelligently leverages the deep complexities presented by demographics and population within India’s most populous state. For example, it accounts for the urban population, which currently stands at 23.7% of the total, to scale up to 35% by 2027.

That kind of influx sets up a linear demand of about 64 lakh urban housing units for the over 8.50 crore people inhabiting urban dwellings in the next five years. Going simply by the scale of that, real estate is going to be an investment goldmine in the state’s ecosystem.

Furthermore, the blueprint proposes categorizing the state into four zones based on their manufacturing sector strengths.  The government plans to create a favorable investment environment to attract new companies into these zones thereby scaling up employment opportunities and real estate demand.