Govt sees potential in  real estate to make  UP $1-tn economy

| | Lucknow
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Govt sees potential in  real estate to make  UP $1-tn economy

Sunday, 04 December 2022 | PNS | Lucknow

The Uttar Pradesh government is looking at the real estate sector as a real source of investment in its goal to make Uttar Pradesh a $1-trillion economy. In the next five years, the real estate sector would get investments worth Rs 7.3 lakh crore, as per an estimate by the Yogi Adityanath government. 

Special focus is being laid on urban areas. Under this, 64 lakh homes HIG, MIG, LIG EWS categories will be constructed in urban areas close to small markets. The government will encourage private companies to invest in these houses.

Citing a survey report, Chief Minister Yogi Adityanath told officials in a meeting held recently that in the year 2020-21, the contribution of real estate in Uttar Pradesh’s Gross State Domestic Product (GSDP) is 14.4 per cent, which is equal to Rs 34 billion. About 20 lakh people are associated with this sector.

Yogi told the officials concerned that there is a need to pay attention to this because according to the report, this sector can be helpful in providing new opportunities for growth, development, and employment in the state.

It has been said in the report that at present, the population of the state is 23.09 crore, of which about 23.7 per cent of the population (almost 5.47 crore) lives in urban areas.

In the year 2027, the population of the state is expected to be 24.47 crore, of which 35 per cent of the population (8.56 crore) would increase in urban areas. 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 urban areas whereas in the next five years, 64 lakh houses will be required in accordance with the population. This is the reason that there will be a boom in the real estate sector, which will play an important role in making the state a $1-trillion economy.

The construction of 64 lakh homes will cost Rs 7.3 lakh crore, according to the chief minister. The average cost of constructing a home is expected to be Rs 1,500 per sq ft.

Private real estate companies will contribute 65 per cent of the cost of construction of these houses while 35 per cent contribution will be from the authority under the government. Besides, 75,000 acres of land will 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.

Yogi has divided it into four parts to promote the real estate sector in the state — Ghaziabad, Gautam Buddh Nagar, and Meerut of NCR in the western zone. There will be an increase in the population here as the manufacturing sector 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 per cent share in the growth state value addition.

Apart from this, the Bundelkhand zone has been included in the southern zone, in which Chitrakoot is prominent due to rapid progress of the defence corridor. 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.

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