Yogi govt to boost real estate sector for achieving $1 trn economy goal

The Yogi Adityanath-led Uttar Pradesh government is eyeing at real estate sector as a key pillar in fulfilling its goal of making the state reach a $1 trillion economy.

The state government estimates that the real estate sector will get investments worth Rs7.3 lakh crore in the next five years, an official release said on Saturday.

Special focus will be on urban areas including Ghaziabad, Gautam Budh Nagar, and Meerut of the National Capital Region in the state’s western zone.

Under the plan, 64 lakh HIG, MIG, LIG, and EWS homes would be constructed in urban areas close to small markets. The government will encourage private companies to invest in these houses, said the release.

Chief Minister Yogi Adityanath, while citing a survey report at a meeting with state officials said that the contribution of real estate in Uttar Pradesh’s Gross State Domestic Product (GSDP) was recorded to be 14.4 per cent in the year 2020-21.

This is equal to Rs34 billion, and about 20 lakh people are associated with this sector, CM Yogi pointed out.

He also instructed officials to pay attention to the real estate sector, which as per the report can be helpful in providing new opportunities for growth, development, and employment in Uttar Pradesh.

At present, the population of the state is 23.09 crore, and about 23.7 per cent of which live in urban areas, which is almost 5.47 crore, the report says.

By 2027, the population of the state will increase to 24.47 crores, and 35 per cent of the population (8.56 crore approx.) would be living in urban areas. In this situation, the urban population of the state will increase by 3.09 crore in the next five years, the report said.

At present, there are 10.7 lakh houses in the urban areas, whereas in the next five years, according to the projected rise in population, 64 lakh houses will be required in the urban areas.

“The construction of 64 lakh homes will cost Rs 7.3 lakh crore,” according to CM Yogi.

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-dollar economy.

The 64 lakh houses will include the HIG, MIG, LIG, and EWS categories and the average cost of constructing a house would be Rs 1500 per square foot.

The government aims at roping private real estate companies to bear 65 per cent of the cost of building these houses, while 35 per cent contribution will be from the authority under the government.

The project will require 75,000 acres of land, of which 32,000 acres are currently available with the government. The government will have to make more arrangements for 43,000 acres of land, CM Yogi pointed out.

Chief Minister Yogi Adityanath said that they have divided the project into four parts to promote the real estate sector in the state which includes– Ghaziabad, Gautam Budh Nagar, and Meerut of NCR in the western zone.

There will be an increase in the population here as the manufacturing sector here contributes 67 per cent 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 of the state.

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.

The eastern zone includes Varanasi, Prayagraj, Mau, Gorakhpur, Sonbhadra and Ayodhya, and is said to have immense possibilities here in the medical, commercial real estate and tourism sectors.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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