Shops & Showrooms Now Allowed on Residential Plots – Major Policy Shift Announced

In a significant development for urban planning and real estate, the Uttar Pradesh government has now permitted the construction of shops and showrooms on residential plots. The new policy is expected to revolutionize local commerce and bring convenience to urban neighborhoods.


What’s New?

Under the updated building bylaws:

  • Shops, showrooms, and small commercial units can now be built within residential zones
  • ✅ Homeowners and plot owners can now utilize ground floors for commercial purposes
  • ✅ Applies to colonies and townships previously marked as “residential use only”

This move will enable residents to run businesses from home, reducing the need to purchase costly commercial spaces elsewhere.


A Boost for Existing Constructions

The policy also provides retrospective benefits, meaning owners of existing residential buildings who have already set up small businesses can now get official approvals without penalty.

“This was a long-pending demand. Many people were running small stores unofficially—now they will be recognized,” said a senior town planning officer.


UP to Follow Gujarat & Mumbai Model

Inspired by successful urban planning models in Gujarat and Mumbai, the new rule aims to:

  • Encourage mixed-use development
  • Reduce travel time for daily needs
  • Foster neighborhood-level businesses
  • Increase real estate value in residential sectors

Key Impact Points

  • 💼 Dual-purpose use of residential properties (living + commercial)
  • 🚪 Ground floors can be rented out for commercial activities
  • 🏙️ Expected surge in mini-markets within colonies
  • 📈 Boost to real estate investment in residential sectors

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