Real Estate in Lucknow – Insight
After the development of Greater Noida, Noida and the Yamuna Expressway, it is time for the capital of Uttar Pradesh Lucknow to show growth in real estate. Compared to Tier I cities, real estate is growing in Tier II cities such as Kanpur, Lucknow, Meerut, and Nasik etc. as more numbers of companies are shifting to these cities for exploring the low-cost operations.
A lot of developers who work in the NCR region are showing interest in peripheral cities such as Jalandhar, Chandigarh, Mohali and Ambala. In terms of supply and demand in the real estate sector, Lucknow is quite promising. The capital value of apartments has noted a median escalation of roughly 10 to 15 percent within the city and the values continue to appreciate.
The expanding demand of flats in the housing system has already led to an expansion of suburban areas such as Sitapur Road, Gomti Nagar and Faiz Road as newer corridors of growth. The rapid growth of the IT sector, and MSMEs or micro, small and medium enterprises, cost-effective property values and infrastructural development are some of the important attributes which fuel the real estate sector.
Prominent developers such as Unitech, Ansals, Jaypee and Parsvnath have launched their housing projects in Lucknow already. A township project which shall contain 70000 units is being planned by Ansal Properties & Infrastructure. For now, the company is involved in the development of a 3500-acre township in Lucknow called Sushant Golf City. A lot of the upcoming projects are meant for high-middle and middle-class people.
Moreover, to meet the housing demand in the city, the LDA or Lucknow Development Authority has started numerous affordable residential schemes. The newer segment is showing good transactions. Not only is there housing demand from Lucknow, but also northern cities. The HNIs and NRIs are showing interest too in the forthcoming luxury segment in the city. There has been a rise of almost 20 percent in the actual number of transactions in the last 6 months.
A lot of redevelopment projects are coming up in the private-public partnership model. Many of them are located in premium areas of Lucknow such as Janakipuram, Aishbagh and TilakMargh. The lifestyle feature demand has led to real estate players to bring on renovation plans in the existing housing section.
A noticeable shift has been seen in preferences of buyers and most of them are choosing apartment housings over row housing. The real estate sector in Lucknow is expanding very fast on the growth trajectory and it has become a real estate hotspot.
Lucknow is mostly known as the City of Nawabs and in recent times its real estate is growing fast enough to match that of Tier I cities. Because of the availability of large land banks, more numbers of developers are taking interest in the city. The large availability of lands leads to the sustained development of flats in Lucknow. The city attracts both investors and end-users at the same time because of world-class offerings and unmatched infrastructure in numerous segments.
Post the sanction of multiple crore budgets by the Uttar Pradesh government to the Lucknow Development Authority or LDA, a stronger network of wider roads along with flyovers, green belts, and interconnected roads along upcoming destinations for seamless transportation.
The city is also connected well with the rest of the country via railways. Founded on the DMRC model, the Uttar Pradesh government is preparing the LMRC or Lucknow Metro Rail Corporation for developing the metro corridor in this city, which would be another feather in the cap of Lucknow’s transportation and infrastructure.
The Lucknow Development Authority has also planned to convert Lucknow into a global class city as the expressway connecting Agra to Lucknow (almost 301 kilometres long), multiple storeyed parking lots, boutique hotels, more flyovers and underpasses would better the condition of transport in this city. Moreover, a four-lane road has also been planned for connecting Lucknow to Sultanpur Road and Raebareli. The government is altering land usage of the existing plots for bringing in innovative and competitive offers to investors and residents.
From a buyer’s viewpoint, Lucknow has always been dynamic investment wise, be it commercial or residential. Between 2010 and 2013, there has been the large-scale growth of the city when big players of realty market turned towards the city. The authorities and state government supported proposals for development.
Areas such as Sultanpur Road, Gomti Nagar Extension, Rae Bareli Road and Gomti Nagar and Amar Shaheed Path have concept based houses, high rise flats, multiple storeyed malls, luxury villas and commercial and retail spaces. As per reports, Lucknow needs almost 25,000 houses in a year for the people moving to the city for their livelihood and will be using the apartments.
People in Lucknow depended on the plots available, builder floors along with projects initiated by the LDA. However, because of the real estate boom, the city has seen the launch of high end, premium and cost-effective residences that have encouraged consumers who want to own houses and have the courage to invest, seeking good investment returns and high disposable income. Buyers have at their disposal apartments that cost between Rs 12 lakhs and Rs 1 crore. Right now, Lucknow has residential projects in different categories such as studio flats in Lucknow, 3/2/1 BHK flats and even villas. Some plots are also available in the city for interested buyers. Based on the locations, the per square foot rate varies between Rs 2000 and Rs 4,500 per square feet.
After residential properties, retail and commercial sectors have a strong presence in Lucknow. There are a number of malls proposed in the city and commercial places that will have large and small office spaces and ITeS and IT facilities for corporates, entrepreneurs and MNCs.
In 2014, Lucknow is set to achieve newer heights in residential investment. Since prices of apartments are still quite a lot, this is the best time to invest in flats in Lucknow as there is a good chance of getting property in a prominent area of Lucknow which has a lot of amenities available.