ANURAG SRIVASTAVA, a 5th-year Law Student specialising in Corporate Law at the School of law, Lovely Professional University has written this blog explaining- An emerging aspect of Real Estate in Uttar Pradesh
Uttar Pradesh Real Estate Regulatory Authority (UP-RERA) was established in the year 2017 to regulate the real estate sector, to bring transparency between the Promoters, Agents and Allotees and to protect the interest of buyers. The Real Estate sector is the most important sector of the Indian Economy and Uttar Pradesh is one of the most populous states in the country, with huge demand for housing and commercial spaces.
Why Real Estate is emerging in UP
The state’s strategic location, with proximity to the national capital, has also played a significant role in attracting investors. The real estate market in Uttar Pradesh offers a variety of investment options. From commercial properties to residential apartments, there is a wide range of choices for investors. With the state government’s focus on developing infrastructure, the demand for real estate is only going to increase in the coming years. One of the major factors that have contributed to the growth of the real estate sector in Uttar Pradesh is the availability of affordable land.
The state has a vast area of fertile land, which has been utilized for real estate development. The cost of land is relatively low to other major cities in India, making it an attractive investment option for developers. Another advantage of investing in the real estate sector in Uttar Pradesh is the high rental yields. The rental yield in the state is higher than in other metropolitan cities in India. This makes it an attractive option for investors who are looking for a steady income stream. The state government has also implemented several policies to boost the real estate sector’s growth. The government has set up an online portal to facilitate land acquisition and approvals for real estate projects. The state government has also introduced several incentives, such as tax exemptions and subsidies, to attract investors.
In recent years, the real estate sector in U.P. has undergone significant changes, driven by various factors, including urbanization, infrastructure development, policy reforms, and technological advancements. In this blog, we will explore some of the emerging aspects of real estate in Uttar Pradesh.
Emerging aspects of real estate in Uttar Pradesh
1) Affordable Housing:
The demand for affordable housing in Uttar Pradesh has increased significantly in recent years. The government has launched several schemes like the Pradhan Mantri Awas Yojana (PMAY) to encourage the development of affordable housing in the state.
This has resulted in a surge in the construction of affordable homes and apartments, particularly in Tier 2 and tier 3 cities of UP.
2) Smart Cities:
Uttar Pradesh has a strong focus on developing smart cities with world-class infrastructure and amenities. The state government has identified several cities including Lucknow, Kanpur, Agra and Varanasi for development under the Smart Cities Mission. This initiative is going to drive the demand for premium real estate in these cities.
3) Co-Working Spaces:
Co-working spaces are gaining popularity in UP, particularly in cities like Noida, Greater Noida and Ghaziabad. This trend is emerging by the growing number of startups, entrepreneurs and freelancers who are looking for affordable and flexible workspaces. It is also popular among large corporates that are looking for satellite offices.
Uttar Pradesh is strategically located in the heart of India and has a strong transportation network including Highways, Railways and airports. This makes it an ideal location for warehousing and logistics companies. The state government has identified several areas including Noida Greater Noida and Ghaziabad for the development of warehousing hubs.
5) Green Buildings:
With the growing awareness about climate change and environmental sustainability, there is a growing demand for green buildings in Uttar Pradesh. The state government has introduced several policies to encourage the development of green buildings, including tax incentives and faster approvals for a green projects.
6) Technology Adoption and Electronic Sector:
Technology is playing an increasingly important role in the real estate sector in Uttar Pradesh. Real Estate companies are adopting technologies like virtual reality augmented reality and artificial intelligence to improve customer experience and streamline operations.
Moreover, U.P. Government in the recent Global Investors Summit, 2023 got a record-breaking proposal of 33.5 lakhs crores investment in which 3,58 lakhs crores went to the electronic sector.
7) Project during present and previous government: (A comparison)
Earlier there was no well-settled authority to keep cheques and balances in the real estate sector. However, with the introduction of RERA in UP the dispute resolution process between the promoters and buyers has increased significantly. After the introduction of UP-RERA, the registrations of real estate projects have increased vehemently as compared to the previous 10
years. Around 258 projects were registered in 2018, 216 projects in 2019, 161 projects in 2020 and 174 projects registered in 2021. Moreover, with an increase of 25% in the number of registered projects a total of 125 projects were listed in the first half of 2022.
During the period of the present government, the real estate sector is growing more diversly, smoothly and effectively than in the previous government. Since the year 2018, the real estate sector started improving vehemently with the registration of around 930 projects. This year, there was a jump of 64 per cent in the registrations of the NCR region, which was like a comeback for the sector. While there was no significant change in registration in non-NCR districts.
The Real Estate Sector in Uttar Pradesh is witnessing significant changes, emerging markets and growth opportunities. Developers can tap into the demand for affordable housing and the development of infrastructure facilities to create profitable real estate projects. The emergence of smart cities provides an opportunity for the development of advanced and sustainable real estate projects. With the state government’s initiatives to boost the real estate sector, Uttar Pradesh is an attractive destination for real estate developers and investors.
Moreover, this sector is undergoing significant changes driven by various factors like urbanization, infrastructure development, policy reforms and technological advancements. The state is poised to witness significant growth in the coming years and these emerging aspects of real estate are likely to play a crucial role in shaping the future of the sector.
Also Read: Rules Governing Punjab: RERA