Uttar Pradesh’s revised township policy and wider real estate reforms are delivering strong results, with capital investment in the sector rising sharply over the past year. According to data released by the Uttar Pradesh Real Estate Regulatory Authority, real estate investments in the state touched ₹68,328 crore in 2025, marking a 53.5 per cent increase over ₹44,526 crore in 2024, as faster approvals and policy clarity boosted investor confidence.

The authority said 309 projects were registered during the year, reflecting growing investor confidence in the state’s policy framework.

“Pro-government policies, especially the revised township policy and faster regulatory clearances, have significantly improved ease of doing business in real estate. This is directly reflected in the sharp rise in investment and project registrations,” Indu Prakash Sharma, of Trio Vision Infra told moneycontrol.com.

The surge follows key amendments to the township policy, under which the minimum land requirement for developing townships was reduced from 25 acres to 12.5 acres. The revised policy also introduced stricter timelines for project completion to protect the interests of homebuyers. Under the new norms, townships spread over 25 acres must be completed within three years, while larger projects have a maximum completion period of five years.

Earlier, several large projects had remained stalled for eight to twelve years, leading to buyers’ funds being locked up. Officials said the new provisions have brought relief to both investors and allottees by improving project viability and ensuring faster delivery.

While the National Capital Region has traditionally dominated Uttar Pradesh’s real estate landscape, 2025 data indicates a clear shift towards non-NCR districts and smaller cities. Of the total projects registered during the year, 122 were in the NCR, while 186 were approved in non NCR areas.

The trend underlines the impact of infrastructure expansion, improved connectivity and focused development of tier two cities. Lucknow emerged as a major hub with 67 projects registered. Bareilly recorded 15 projects and Agra 14. New investments were also seen in Bulandshahar, Rampur, Chandauli, Unnao, Gonda, Mau and Mirzapur, pointing to a wider geographical spread of real estate activity across the state.

Religious tourism has also played a significant role in driving real estate growth. Mathura saw 23 projects registered in 2025. Ayodhya recorded five projects, Varanasi nine and Prayagraj seven.

“The large-scale redevelopment of Ayodhya, Varanasi and Mathura, along with a sharp rise in religious tourism, has created strong demand for housing, hospitality and commercial projects,” Vishal Singh, a government spokesman said. “These cities are no longer just pilgrimage destinations. They are fast emerging as new real estate growth centres.”

Real estate developers say the broader improvement in the state’s investment climate has played a crucial role in changing perceptions about Uttar Pradesh.

“Over the last few years, there is a very positive vibe about Uttar Pradesh. Earlier, many big investors were not willing to come here. Now you can see major names entering the state, whether it is large housing projects, logistics parks, industries or townships,” said Amit Srivastava, CEO of BBD Viraj Group and a member of CREDAI.

He pointed to infrastructure upgrades such as new expressways, including the Lucknow-Delhi connectivity, as well as improvements in electricity supply, law and order, and ease of doing business doing wonders to UP’s march to prosperity.

“One of the most transformative decisions has been allowing land-use conversion through development authorities. Earlier, this process was with the Revenue Board and used to take a very long time, which was not business-friendly. Now approvals are faster, and that has unlocked a lot of stalled and new investments,” Srivastava said.

Officials said improved connectivity, urban redevelopment programmes and a steady rise in tourist and devotee footfall are helping these cities emerge as new centres of real estate development in Uttar Pradesh and hoped that the state will maintain strong momentum in the coming years.