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UP RERA approves record high project registrations

By Rishabh Chamoli | 2022-11-21

Festive cheers continue in the real estate market in Uttar Pradesh. The State RERA Authority registered a record 36 projects in September, with an accumulative worth of over Rs 3,640 crore. Of these, majority are residential projects , and the rest are commercial. Most of the new projects are coming up in non National Capital Region (NCR) cities.

The Uttar Pradesh Real Estate Regulatory Authority (UP RERA) registered 36 new projects in the state in September 2022. This figure has set a new record as this is the highest ever number of realty projects being registered in a single month. These projects have a total investment value of Rs 3648.35 crore. Over 70 percent of these new projects are located in non NCR districts, signifying a new trend in States real estate markets.

Boost to residential inventory in the State
Out of the 36 projects registered, the lions share is held by residential real estate projects. A total of 6,931 housing units are proposed in 32 new residential constructions. The remaining are 1,185 units planned in four commercial projects.

Shift towards non NCR regions
Traditionally, group housing and large residential projects have been concentrated in cities which are part of the National Capital Region (NCR). However, the latest numbers show a gradual shift towards non NCR markets.

Out of the total projects sanctioned by UP RERA, 24 are from non NCR cities, constituting over 70 percent share. In 2017, this share was around 50 percent. This implies a uniform growth of real estate markets across the State.

Maximum projects have been registered in Agra and Lucknow (four), whereas Vrindavan, Moradabad and Kanpur have got approvals for three new projects each. Gorakhpur, in North UP, has got registrations for two new projects. One new project has been approved for the districts of Varanasi,Jhansi, and Prayagraj. Even districts like Badaun and Gonda have been represented in this list with one new project each, even though big housing projects were not in demand before.

New projects in NCR
In the NCR, the maximum number of new projects have been sanctioned in Ghaziabad district (7), followed by Gautam Buddh Nagar (3) and Meerut (2).

Revival of housing demand in Uttar Pradesh
Shashank Gupta, Executive Chairman and Managing Director Urban Axis Infratech Ltd, said, A historically high number of registrations in a single month demonstrates the sectors much needed growth, particularly in underdeveloped markets. There is a rising desire for apartment style living in Tier 2 and Tier 3 cities. Indian real estate is preparing for a rally, with high potential small towns serving as the center of the revival of the industry.

This trend of record registrations with the RERA Authority indicates a revival of housing demand post pandemic. As rising demand helps developers clear out their existing inventory, they are back on the drawing board for new projects. The focus towards non-NCR towns is expected to expand further as builders scout for new markets where land availability is abundant and reasonably priced.