November 29, 2023

Jocuri

Mad about real estate

Lucknow: An Upcoming Real Estate Mecca

Lucknow, the capital of Uttar Pradesh, well known for its splendor and rich heritage is now carving a niche in the hitherto unexplored arena of real estate. The ‘City of Nawabs’ is fast evolving as a realty destination with large scale construction activity taking place in both residential and commercial segments.

Real estate in Lucknow is pronouncing a boom in its housing and commercial sectors while being an upcoming development hub. Along with a high per capita GDP as a result of surging economic activity, disposable incomes and aspirations of middle class are also growing. The current boom in the Lucknow realty can be seen in the property developments spreading out of traditional areas like Hazratganj to newer emerging growth centers like that of Mahanagar, Gomti Nagar, Janakipuram and other suburbs. It has assumed significant proportions along various highways connecting Lucknow with other important places like Kanpur, RaiBarielly, Faizabad, Sitapur and others.

The all-round growth of  Lucknow real estate is marked by the entry of top national players like Parsvnath, Eldeco, Ansals, Omaxe, Sahara, Unitech, etc. In today’s time, at least 100 local and national developers are active in the city with about 10,000 residential units and over half a dozen shopping malls in the pipeline besides three operational malls. Various residential and commercial projects have been launched that promise to transform the skyline of this vibrant city. Such humungous development will then naturally raise the property price meter making it a lucrative investment destination for both buyers and developers.

The property in Lucknow has witnessed substantial price appreciation in the last couple of years. Land prices have gone up 100 to 300 percent in last few years while the finished products have seen 100 percent price increase i.e. from Rs. 1,100 psf to Rs. 2,200 psf. The residential developments by private developers have seen bigger appreciation as their prices range between Rs 1,500-2,700 psf. The capital value of retail properties varies from Rs 6,000-20,000 psf and rentals are between Rs 70-180 psf per month. Similarly, the rental value for commercial property in Lucknow is around Rs 30-55 psf per month. Not only the private players but government agencies like Uttar Pradesh Housing Development Board (UPHDB) have also increased housing prices by more than 80{ef6a2958fe8e96bc49a2b3c1c7204a1bbdb5dac70ce68e07dc54113a68252ca4} in last 5 years.

It is always rewarding to invest in property at good locations that assure great returns in future. The best areas for investment in a city are usually in the vicinity of malls or other attractions as they fetch good value. Real estate in Lucknow boasts of high expansion rate and is expected to have a $2.5 billion organized real estate by year end i.e. the highest in North India after National Capital Region (NCR). It is one of the few cities to follow vertical outgrowth plan like Delhi, Mumbai, Surat and Ghaziabad. The residential property in Lucknow is developing rapidly and is best for buying, investing and even renting/ leasing purposes.

Being an education and economic hub, Lucknow attracts students from various fields to study in the city. Also, it is the capital city of Uttar Pradesh and the second largest city of the state after Kanpur. It is the political and industrial center of the state that makes it an area of high significance. It has excellent connectivity to other cities, good infrastructure and modern high standard of living. Lucknow real estate has always been an end user driven healthy market with realistic pricing and realistic appreciation which continues even today. It offers a substantial potential for the future growth of real estate and developers are cashing in on it.