The Yogi government has pledged to make Uttar Pradesh a $1 trillion economy. In order to achieve this goal, the government is eying real estate as an important sector. The government estimates to get investments worth Rs 7.3 lakh crore in the real estate sector as about 20 lakh people are associated with real estate in UP.
Urban areas will be the major focus area to achieve this goal. Under this, 64 lakh HIG, MIG, LIG, and EWS homes would be constructed in urban areas close to small markets and the government will encourage private companies to invest in these houses.
Apart from this, the Bundelkhand zone has been included in the southern zone, in which Chitrakoot is prominent due to the rapid progress of the defence corridor here. And the eastern zone includes Varanasi, Prayagraj, Mau, Gorakhpur, Sonbhadra and Ayodhya. There are immense possibilities here in the medical, commercial real estate and tourism sectors.
Citing a survey report, Chief Minister Yogi Adityanath told officials in the meeting recently that in the year 2020-21, the contribution of real estate in Uttar Pradesh's Gross State Domestic Product (GSDP) is 14.4 percent, which is equal to Rs 34 billion.
Reports suggest that this sector can be helpful in providing new opportunities for growth, development, and employment in the state. Hence CM Yogi issued instructions to the officials that there is a need to pay attention to this because,
It has been said in the report that at present the population of the state is 23.09 crore, out of which about 23.7 percent of the population lives in urban areas, which is almost 5.47 crore.
On the other hand, in the year 2027, the population of the state will be 24.47 crore, of which 35 percent of the population will increase in urban areas, which will become 8.56 crore. In this situation, over 3.09 crore people will increase in the urban areas of the state in the next five years.
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 the urban areas. This is the reason that there will be a boom in real estate, which will play an important role in making the state a $one trillion economy.
The construction of 64 lakh homes will cost Rs 7.3 lakh crore, according to Chief Minister Yogi Adityanath. The HIG, MIG, LIG, and EWS categories are among the 64 lakh homes. The average cost of constructing a home is expected to be Rs 1500 per square foot.
Private real estate companies will contribute 65 percent of the cost of building these houses while 35 percent contribution will be from the authority under the government. 75,000 acres of land would be required to build these houses, of which 32,000 acres is currently available with the government. In such a situation, the government will have to make more arrangements for 43,000 acres of land.
Chief Minister Yogi Adityanath has divided it into four parts to promote the real estate sector in the state which includes— Ghaziabad, Gautam Budh Nagar, Meerut of NCR in the western zone. There will be an increase in the population here as the manufacturing sector here contributes 67 percent to the growth state value addition.
With the arrival of new companies, the means of employment will increase, which will attract people towards it. Similarly, there will be cities like Lucknow and Kanpur in the central zone, whose manufacturing sector has a 13 percent share in the growth state value addition of the state.