UP Real Estate Investment Surges 53% on Policy Reforms, Tourism Boom
Overview
Uttar Pradesh's real estate sector experienced a significant surge, with capital investments climbing 53.5% to ₹68,328 crore in 2025. Revised township policies, faster project clearances, and robust growth in religious tourism hubs like Mathura and Ayodhya are driving increased investor confidence and project registrations across the state.
Uttar Pradesh is witnessing a dramatic upswing in real estate investment, fueled by strategic government policies and a burgeoning tourism sector. Capital investments in the state's property market leaped by 53.5 percent to ₹68,328 crore in 2025, a substantial increase from ₹44,526 crore recorded in 2024. This surge indicates a strong resurgence of investor confidence.
Revised Township Policy Drives Growth
The Uttar Pradesh Real Estate Regulatory Authority reported that 309 projects were registered during the year. A key catalyst for this growth is the government's revised township policy. Amendments reduced the minimum land requirement for developing townships from 25 acres to 12.5 acres. Furthermore, stricter project completion timelines, requiring large projects to be finished within three to five years, have been implemented to safeguard homebuyers and improve project viability.
Growth Spreads Beyond NCR
Traditionally dominated by the National Capital Region (NCR), Uttar Pradesh's real estate market is showing a pronounced shift towards non-NCR cities and tier-two urban centers. In 2025, 186 projects were registered in non-NCR areas compared to 122 within the NCR. Lucknow emerged as a prime hub with 67 project registrations, while Bareilly recorded 15 and Agra 14.
Religious Tourism Fuels Demand
Religious tourism has emerged as a significant driver of real estate development. Cities like Mathura saw 23 project registrations in 2025, followed by Varanasi with nine, Prayagraj with seven, and Ayodhya with five. Government officials noted that these pilgrimage destinations are rapidly transforming into key real estate growth centers, spurred by large-scale redevelopment and increased tourist footfall.
Developer Confidence Soars
Real estate developers express optimism about Uttar Pradesh's improving investment climate. Enhanced infrastructure, including new expressways and improved connectivity, coupled with better electricity supply, law and order, and streamlined business processes, are attracting major investors. The ease of land-use conversion approvals has also unlocked substantial new and stalled investments, contributing to the state's overall prosperity.
