Commercial Property: A Good Investment in Lucknow?

Lucknow is one of the fastest-growing cities in India with robust expansion in terms of infrastructure and development. One of the most promising smart cities in the country, Lucknow’s potential has increased by leaps and bounds owing to the fast-paced evolvement being carried out in the city.  And so, it is never too late to call it your home and enjoy the ultimate benefits of your real estate investments in one of the most developmentally sound cities in India.

 Why Lucknow?

The commercial real estate sector in Lucknow has been the focus of investors lately due to the robust retail boom post-Covid, and the rapid rate at which Lucknow Development Authority has paced up the progress. This makes the city an ideal residential and commercial real estate investment hub.

Apart from residential properties, Lucknow’s commercial property market is also witnessing a rise. Commercial properties in Lucknow range from mixed-use retail units to offices, warehouses, leisure centres, schools and airports. The huge diversity in the offerings is attractive for investors. In that respect, investing in a commercial property proves to be more dynamic than residential property as its market is more volatile, less liquid.

 Why Commercial Property Is A Good Investment?

According to industry experts, investors are more attracted towards investing in commercial properties because of their higher returns on investment (ROI). As per Advance India Projects Limited (AIPL), the rentals from commercial spaces are higher than from residential properties. Where a residential property typically could give a return between 1.5-2.5 per cent per annum, commercial properties such as shops in malls can give up to 6-8 per cent annually.

Lucknow is one of the fast track smart cities of India that has seen unparalleled rapid growth in the last decade. During the slowdown in the real estate market, the metropolitan cities faced the brunt, whereas in the state capitals and Tier-II cities the impact was cushioned. Lucknow was one city that led this mood. The Lucknow property market has witnessed a sharp rise, giving an impetus to investors to look towards the City of Nawabs as a lucrative investment hub. The city witnessed a noticeable growth in the number of buyers owing to the growing opportunities that the city offers such as modern facilities, well-developed roadways, modern luxurious high rise residential complexes, plush amenities and above all competitive prices. 

Lucknow has many zones where you can explore investments and get a fairly good double-digit appreciation in a few years. State-of-the-art infrastructure and new shopping complexes and malls, alongside educational institutes have worked in the favour of the city.

But, like they say, first time calls for good research. Investing in commercial property is no different and can be a daunting prospect. Hence, having done a good amount of research and gathering accurate information and sound advice on real estate investments, investing in a commercial property can prove to be a great idea.

What Kind Of Commercial Investments Can You Delve In?

A commercial property can be invested in in two ways- Direct and indirect investment.  Direct investments include buying brick and mortar shops, workspaces, and other retail outlets. These give returns over a period of time through rental income or increasing property value. Indirect investments include investment in stocks and shares, bonds of companies delving in commercial proprties or REITs funds. These investments are dependant on the value of  financial securities of publicly held companies.

What Challenges In Commercial Investments Must You Look Out For?

Like any other market, commercial real estate also comes with its bag of challenges.

Commercial properties usually take longer to sell because of their scale and attract niche investors, making such properties less liquid. The leases on a commercial property are way longer than that of a residential property. These can stretch upto 8 years.

As an investor, you must have althorogh knowledge of the cost of properties, the city laws and by-laws, taxation, and more importantly the property rental potential before you settle down on one. Bypassing any of these aspects can be detrimental.

Top 5 Commercial Projects to Invest in Lucknow

Arcadium Central

Arcadium is a premium commercial project approved by UP Awas Vikas Parishad at well-connected locality Vrindavan Yojana, that houses commercial spaces, and shops. Aesthetically built and meticulously planned, the properties here are in the range of Rs. 48. 4 Lac - 1. 21 Cr. Spanning across 43762 Sq-ft, the project is well-spaced out. Designed to cater to the needs of different individuals, the property offers different unit types as Commercial Shop.

DLF MyShop

DLF My Shop is a ready to move project in Vibhuti Khand, Lucknow, offering investment options within your budget. The project is touted as Lucknow's most desirable commercial project for those looking for an excellent investment opportunity. Properties here are available starting Rs. 71.83 L.

 Purvanchal Kings Court

Purvanchal Kings Court is symbolic of Lucknow’s transformation from the legacy of nobility to the hub of commercial development at at Vibhuti Khand, Gomti Nagar; The project is a majestic looking structure embodying state-of-the-art modern amenities, perfectly catering to the urbane crowd’s needs and aspirations, and houses fully-facilitated office spaces. The posh location and incredible amenities of Purvanchal Capital Tower will make it the next big landmark of the city.

Ansal API Shopping Square

It is a ready to move project in Sushant Golf City, Lucknow, offering investment options within your budget. property options are available starting Rs. 22 L, making it ideal due to the advantage of a posh location and reasonable prices, making for exciting returns on investment. There are also high quality grade A office spaces in this project, ensuring high rental returns on investment from corporate clients.

Experio

Experio at Experion Capital in Gomti Nagar, Lucknow is a commercial project. The project offers Shops,Ready To Move Office Spaces and Bare Shell Office Spaces. It holds the advantage of being well connected and built by with the dynamic needs of modern times. This is a RERA registered project. The project is spread over a total area of 1.5 acres of land.

All said and done, Lucknow’s remarkable progress has been witnessed by the country and no points for guessing that this massive uplift plan has made it a profitable market for investors interested in commercial properties. This is the best time to do it!