In an attempt to take the valuation of the state’s economy to $1 trillion, the Uttar Pradesh government aims to attract investments worth Rs 7.3 lakh crore in the real estate sector in the next five years, a government spokesperson said.
A government spokesperson added, “Urban centres are our special focus in the context of real estate. We plan to construct 64 lakh HIG, MIG, LIG and EWS homes in urban areas. These houses will be constructed close to small markets. The government will encourage private companies to invest in these housing projects.”
Citing a survey report, Chief Minister Yogi Adityanath had recently told officials in a meeting that in 2020-21, the contribution of real estate in the Gross State Domestic Product was 14.4 per cent, which is equal to Rs 34 billion.
Adityanath also directed officials to focus on the sector so that it provides new opportunities for growth, development and employment in the state. Nearly 20 lakh people are associated with this sector.
It has also been said in the report that at present, the population of the state is 23.09 crore, of which around 23.7 per cent of the population lives in urban areas, which is nearly 5.47 crore.
On the other hand, in 2027, the population of the state will be 24.47 crore, of which 35 per cent of the population will live in urban areas — 8.56 crore people. Therefore, more than 3.09 crore people will increase in urban areas of the state in the next five years.
The spokesperson also said that, at present, there are 10.7 lakh houses in the urban areas, whereas in the next five years, according to the population, 64 lakh houses will be required in these areas.
Therefore, there will be a boom in the real estate, which can play an important role in making the state a $1 trillion economy.
The construction of 64 lakh homes — including HIG, MIG, LIG, and EWS — will cost Rs 7.3 lakh crore. The average cost of constructing a home is expected to be Rs 1,500 per square foot, the spokesperson added.
Private real estate companies will contribute 65 per cent of the cost of building these houses while 35 per cent contribution is to come from the authority under the government.
Nearly 75,000 acre of land would be required to build these houses, of which 32,000 acre is currently available with the government. Thus, the government will have to arrange 43,000 acre of land for constructing houses.
The Chief Minister has divided the state into four parts to promote the real estate sector.
The first zone — comprising Ghaziabad, Gautam Buddha Nagar, Meerut and NCR — is expected to witness an increase in the population as the manufacturing sector here contributes 67 per cent to the growth state value addition, said the spokesperson.
With the arrival of new companies, the means of employment will increase, which will attract people towards these cities.
Similarly, cities like Lucknow and Kanpur in the central zone will also witness a real estate boom as per the government. The manufacturing sector of this zone has a 13 per cent share in the growth state value addition of Uttar Pradesh.
In the Bundelkhand zone, Chitrakoot is pegged to witness rapid progress due to the defence corridor.
Lastly, the eastern zone — including Varanasi, Prayagraj, Mau, Gorakhpur, Sonbhadra and Ayodhya — are most likely to see new opportunities in medical, commercial real estate and tourism sectors.