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Uttar Pradesh’s real estate sector has witnessed a significant surge in investments in 2025, reflecting growing confidence among developers and investors across India. According to senior officials, the sector recorded a sharp 53 per cent year-on-year increase in investment value, driven by policy reforms, improved regulatory oversight, and expanding demand beyond traditional urban centres.
The renewed momentum highlights how Uttar Pradesh is steadily positioning itself as a major real estate destination, supported by large-scale infrastructure development and strong governance under UP RERA.
UP RERA Chief Flags Record Investment Growth
Speaking at the ICC Real Estate Summit 2026 held in Lucknow, UP RERA chairman Sanjay R Bhoosreddy stated that real estate investments in the state have climbed to nearly ₹69,000 crore in 2025. This marks a substantial rise from ₹45,000 crore in 2024 and around ₹29,000 crore in earlier years.
He described the growth as a clear indicator of renewed trust in the sector, attributing it to transparent regulations and faster project approvals under UP RERA. According to him, the scale of investment growth reflects the sector’s increasing contribution to the state’s economic expansion.
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Pan-India Developers Show Strong Interest
Developers from across India are actively entering Uttar Pradesh’s real estate market. Bhoosreddy noted that companies from Maharashtra, Karnataka, and southern India are now launching projects across the state.
This influx of national and regional players demonstrates how UP RERA has helped create a predictable and investor-friendly environment, encouraging participation from developers who were earlier focused primarily on metro markets.
Real Estate Growth Extends Beyond Delhi-NCR
Real estate activity in Uttar Pradesh is no longer concentrated only in the Delhi-NCR region. According to UP RERA, cities such as Agra, Bareilly, Moradabad, Varanasi, Prayagraj, Ayodhya, Jhansi, Kanpur, Aligarh, Gorakhpur, Azamgarh, Devi Patan, and Mirzapur are witnessing a steady rise in project launches.
Multiple residential and mixed-use developments are currently underway in these cities, signalling a broader and more balanced real estate expansion across the state.
Ayodhya Sees Sharp Rise in Land Prices
Ayodhya has emerged as one of the most high-value real estate markets in Uttar Pradesh. The UP RERA chairman highlighted that land prices in premium locations of Ayodhya have surged dramatically, with rates touching nearly ₹1 lakh per square foot in select areas.
This appreciation is being driven by infrastructure upgrades, religious tourism, and increasing investor interest following major redevelopment initiatives in the city.
RERA Registrations Rise Across Uttar Pradesh
Uttar Pradesh has also seen a noticeable increase in RERA registrations for new real estate projects. In 2025, UP RERA approved 308 projects, exceeding expectations and marking a nearly 20 per cent rise over the 259 projects registered in 2024.
Officials attribute this increase to simplified procedures, policy clarity, and consistent enforcement of regulatory norms under UP RERA.
Faster Approvals Strengthen Investor Confidence
One of the key reforms highlighted by UP RERA is the reduced approval timeline for project registrations. Developers can now receive registration approvals in as little as four days if all documentation is complete, with a maximum processing period of 30 days.
This efficiency has significantly improved ease of doing business and strengthened investor confidence in the Uttar Pradesh real estate ecosystem.
Consumer Trust Improves, Complaints Decline
Consumer confidence in the real estate sector has improved considerably. According to UP RERA, the number of daily complaints has fallen sharply—from nearly 35 cases earlier to an average of just 9.5 cases now.
Bhoosreddy emphasised that timely project delivery is in the industry’s own interest and said the authority aims to further reduce grievance filings through strict compliance and monitoring.
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Demand Shifts from Affordable to Luxury Housing
Industry experts at the summit noted a structural shift in housing demand. Rajeev Singh, Director General of the Indian Chamber of Commerce, said that affordable housing is gradually giving way to premium and luxury segments, driven by rising incomes and lifestyle changes.
This shift aligns with UP RERA data showing increased registrations for larger, amenity-rich residential projects across Tier I and Tier II cities.
ICC–ANAROCK Report Highlights Value-Led Growth
The ICC–ANAROCK report released at the event highlighted a transition from volume-led to value-led growth in India’s housing market. While overall housing sales declined in 2025, the total transaction value increased significantly, reflecting higher ticket sizes.
Homes priced below ₹75 lakh now account for a smaller share of the market, while luxury and ultra-luxury housing continues to expand and evolve, closely monitored by UP RERA.
Uttar Pradesh’s Real Estate Role in Economic Growth
Linking real estate growth to broader economic goals, Bhoosreddy said the sector plays a vital role in achieving India’s $5 trillion economy target and Uttar Pradesh’s ambition to become a $1 trillion economy.
With transparent regulation, faster approvals, and rising developer participation, UP RERA continues to act as a key catalyst in shaping the future of Uttar Pradesh’s real estate market.
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Ans 1. Uttar Pradesh’s real estate sector saw a 53% year-on-year increase, with total investments reaching nearly ₹69,000 crore in 2025, up from ₹45,000 crore in 2024. This growth reflects rising developer confidence, policy reforms, and improved regulatory oversight under UP RERA.
Ans 2. Real estate activity is expanding across several cities, including Agra, Bareilly, Moradabad, Varanasi, Prayagraj, Ayodhya, Jhansi, Kanpur, Aligarh, Gorakhpur, Azamgarh, Devi Patan, and Mirzapur. Developers are now investing in residential and mixed-use projects outside the traditional Delhi-NCR corridor.
Ans 3. Developers from Maharashtra, Karnataka, and southern India are entering UP due to the predictable regulatory environment, faster approvals, and growth potential in Tier I and Tier II cities. UP RERA’s transparency and efficiency have made the state an attractive destination beyond metro-focused markets.
Ans 4. In Ayodhya, land prices in premium locations have surged, reaching nearly ₹1 lakh per square foot in certain areas. This is driven by infrastructure improvements, religious tourism, and investor interest linked to major redevelopment projects.
Ans 5. UP RERA approved 308 projects in 2025, marking a 20% increase over the 259 projects registered in 2024. Simplified procedures and faster approvals have encouraged developers to launch more projects across the state.
Ans 6. Project registration approvals can now be obtained in as little as four days if all documents are complete, with a maximum processing time of 30 days. This efficiency has boosted investor confidence and improved the ease of doing business in the state’s real estate sector.
Ans 7. Daily complaints have decreased significantly, from around 35 cases per day earlier to an average of 9.5 cases now. Timely project delivery, strict compliance monitoring, and better governance under UP RERA have improved consumer trust in the market.
Ans 8. Yes, there is a shift from affordable to premium and luxury housing, driven by rising incomes, lifestyle changes, and higher demand for amenity-rich projects. Homes priced below ₹75 lakh now account for a smaller share, while luxury and ultra-luxury segments are expanding.
Ans 9. The report highlights a move from volume-led to value-led growth, with overall sales declining but total transaction value rising. Higher-ticket projects and luxury homes now dominate the market, reflecting changing buyer preferences and market evolution.
Ans 10. The real estate sector supports Uttar Pradesh’s goal of becoming a $1 trillion economy and contributes to India’s $5 trillion economy target. Transparent regulations, faster approvals, and strong developer participation under UP RERA make the sector a key driver of economic growth and urban development.