Lucknow's Real Estate Investment Opportunities: What You Need to Know

With the major metropolitan cities and capital cities saturated with real estate development, and the prices there skyrocketing beyond the common man’s means, real estate buyers and investors are now looking for locations that meet all requirements of development, modernity and competitive prices.

 Lucknow stands as the best bet as far as real estate goes. The new kid on the block is driving buyers in   hordes due to its ‘classic charm meet modern facilities’ vibe, rapid infrastructural development, efficient   governance, administrative competence, progressive real estate reforms, higher living standards and   sizable  investments.; in short, the best of all worlds! Being Northern India’s second biggest city and the   capital of the country’s second-biggest economy, Lucknow has carried its real estate market to emerge as   the last man standing for private buyers and other big commercial players.

 Lucknow's Real Estate Market As It Stands Today

Lucknow, along with many other Tier-2 cities have been garnering the interest of real estate buyers in the post pandemic phase. Lucknow has found itself a place in the IRIS (Indian residential index) as per reports, which means it has shot its way up ahead of other cities. The kind of fast track development that is being experienced in the city, and the fact that there is no dearth of opportunities, developers and buyers, the property market in Lucknow is slated to be the next big trend.

To understand the Lucknow real estate market, here are some important trends that must be highlighted-

● Lucknow has paced up its industrial and manufacturing growth which has led to it becoming a hub for sectors like electronics, food processing, IT, banking and real estate.

● The city is home to many big ticket real estate projects and deals, owing to its being a part of crucial and significant upcoming industrial and growth corridors.

● The rapid evolution and development projects in Uttar Pradesh have had an upward ripple effect on the real estate market in Lucknow, which in turn has created considerable revenues and employment opportunities to sustain the real estate segment.

● Lucknow, as per reports, accounts for 3.85% of UP’s GDP, and is on its way to becoming the biggest economic center for Uttar Pradesh.  This could be credited to the excellent connectivity corridors, modern amenities, social comforts, expansive areas and an array of options- from apartments to houses to villas.

● Lucknow boasts of some top class healthcare and prime educational institutions, which has led to the city being touted as an all rounder.

● Bigger homes and better amenities in lower prices attract buyers to the Lucknow real estate.

● The expansion of the International Airport will enhance its ability to serve 10 million people every year.

● The proposed Lucknow-Kanpur Elevated Expressway will prove to be an encouraging stimulus for businesses.

● The State Government has begun development of infrastructure projects like the Outer Ring Road and also the state-of-the-art Purvanchal Expressway, which will add another feather to the cap of connectivity in and from Lucknow.

● The storm of luxury residential projects and world class commercial properties has made Lucknow the nerve center of opportunities.

Considering the above factors, here are some of the best areas in Lucknow to Invest in Real Estate

Lucknow can be divided into two regions- Old Lucknow and New Lucknow.

Old Lucknow is an end-user driven market with lesser investment space. This part of Lucknow includes colonies such as Chowk, Rajajipuram, Rakabganj and Rajabazar, which hold limited opportunities for the real estate market as these localities lack the infrastructure to support such massive real estate development. Though, the resale prices in these areas are equivalent to the prices in the prime locations of New Lucknow, namely Indira Nagar and Gomti Nagar due to high demand and low supply.

The New Lucknow region (trans-Gomti region)  is where the hotspots exist. Colonies such as Gomti Nagar, Indira Nagar, Hazratganj, Jankipuram have seen the fastest growth in real estate due to the radial development with the highways making connectivity of neighboring cities of Kanpur, Raebareli, Sitapur and Faizabad smoother with Lucknow. This has led to a fastrack real estate activity in the surrounding areas. Exemplary infrastructure and amenities sprouting along these areas has caught the attention of real estate bigwigs such as DLF, Rishita Developers, Unitech and Ansal who have launched some of the most touted residential projects here.

New projects that promise good returns & excellent standard of living

Rishita Developers stands synonymous with global lifestyle and higher living standards in Lucknow. Rishita Developers has been delivering quality projects in the city. All high rise residential offerings by Rishita Developers are set to pioneer benchmarks, bringing all the nuances and essences of global lifestyle- modish architecture, ease of connectivity, location advantages and contemporary amenities.

The delivered projects include Celebrity Greens, premium 2 BHK & 3 BHK high rise apartments and Mulberry Villas, luxurious 4 BHK Villas and Rishita Mulberry Heights  in Sushant Golf City. Rishita Manhattan is an upcoming project in Gomti Nagar Extension and the latest property Serenity is modernity redefined offering 4 BHK apartments.

Lucknow's Property Prices and How They've Changed Over the Years

It is imperative to understand the price trends of properties in Lucknow to gauge the real estate market and  the prospects of buying property in the city.

Starting price of properties in Lucknow is Rs. 50 per sqft whereas the average price of properties in  Lucknow is Rs. 2,793 per sqft. These trends are indicators that buying and selling of properties in Lucknow  is a profitable market showing an upward move on the demand and supply.

 Lucknow real estate market is witnessing a change as far as behavioural and economic patterns of the consumers is concerned. This has led to an upward swing of the housing market. The trends are proof that consumers are now looking beyond big metropolitan cities and diverting their attention towards tier-2 cities that offer higher standards of living, keeping wellness and sustainability at the helm. The apartment fad in Lucknow has also created a gateway for buyers to tap this lucrative untouched market.

The Challenges of Investing in Lucknow Property

Though the capital city of Uttar Pradesh is surely giving a tough competition to the mainstream metropolitan cities and is being touted as the next big booming real estate market, the city still holds certain challenges.

One significant one being the inability of developers to deliver timely and quality. This has created a huge gap between the trust of the buyer and the credibility of the developers.

Rising demand for property investment in Lucknow has created a divisive chasm of increasing raw material prices, land title issues and single window clearance.

Lastly, as per CREDAI- UP, several illegal colonies which do not hold an approved layout plan have been given way by developers, leading to challenges for the development of legal colonies. Such developers cause revenue loss to the state government due to non payment of development charges, making it difficult for a credible buyer to invest in Lucknow.

 Like any other Tier 1 city, Lucknow carries its challenges with elan and despite them, with incredible development, emergence of new age real estate developers, fantastic modern amenities and wellness prospects, the city offers one of the best real estate investment and buying markets in India.