The real estate sector in Uttar Pradesh has experienced remarkable growth, with investments skyrocketing by 53 percent to reach Rs 69,000 crore in the year 2025. This substantial increase highlights the growing confidence and interest from developers across India in the state's property market.
Steady Investment Growth Over Three Years
UP RERA Chairman Sanjay R Bhoosreddy revealed these figures during his address at the ICC Real Estate Summit 2026, held in New Delhi. He detailed a consistent upward trajectory in promoter investments over the past three years. In 2023, investments stood at Rs 29,000 crore, which then rose to Rs 45,000 crore in 2024, before reaching the current high of Rs 69,000 crore in 2025. This represents a significant compound growth that underscores the sector's expanding appeal.
Project Approvals and Construction Activity Surge
Accompanying the investment boom is a notable rise in project approvals by UP RERA. The regulatory body approved 308 real estate projects in 2025, surpassing the expected 300 and marking a 20 percent increase from the 259 projects sanctioned in 2024. For comparison, only 197 projects received approval in 2023, indicating a rapid acceleration in regulatory clearances.
Construction activity has also intensified significantly. The number of housing units constructed has shown impressive growth: approximately 25,500 units in 2023, between 65,500 and 70,000 units in 2024, and around 85,000 units in 2025. This threefold increase in construction output reflects the sector's robust expansion and heightened development pace.
Factors Driving the Investment Influx
Bhoosreddy attributed the surge in investments to growing confidence among developers, including firms from South India, Maharashtra, and Karnataka, along with large national companies. He emphasized that UP RERA's streamlined approval process plays a crucial role, offering faster registrations with a minimum timeframe of four days and a maximum of 30 days, provided all necessary details are submitted.
Geographical Expansion Beyond Delhi-NCR
Real estate development is no longer confined to the Delhi-National Capital Region. There is burgeoning interest in several key cities across Uttar Pradesh, such as Agra, Varanasi, Prayagraj, Ayodhya, Kanpur, and Gorakhpur. In Ayodhya, the most expensive land rate has reached an astonishing Rs 1 lakh per square foot, signaling high demand and premium valuation in emerging hotspots.
Economic Impact and Future Outlook
Highlighting the sector's pivotal economic role, Bhoosreddy stated that the next two decades would belong to real estate in terms of accelerating both national and state GDP growth. This perspective underscores the long-term strategic importance of the property market in Uttar Pradesh's economic development.
Meanwhile, ICC Director General Rajeev Singh noted a structural shift in housing demand towards luxury and amenity-rich properties, driven by higher incomes and evolving lifestyles. This trend indicates a maturing market with diversified consumer preferences.
The combined insights from industry leaders paint a picture of a dynamic and rapidly evolving real estate landscape in Uttar Pradesh, poised for sustained growth and increased investment in the coming years.
