Why Should NRIs Invest in Real Estate in Lucknow

Investing in real estate is not for beginners, especially if you are an NRI or Non-resident Indian as living far from the country with assets within is always a challenge. For Non-Resident Indians (NRIs), real estate investment in India has been a popular choice firstly, due to India’s growth as an economic power and potential financial returns owing to it, and secondly, because of the emotional connection they feel towards their homeland. While major cities like Mumbai, Delhi, and Bangalore have been the fulcrum of real estate gains, there’s a new player that has quietly emerged as a lucrative real estate destination: Lucknow. The capital city of Uttar Pradesh has gradually caught up with the bigwig cities to witness a boom that has caught the attention of NRIs. The city offers a unique blend of rapid urban growth, rapid infrastructural development, rich cultural heritage, affordable property rates, and a booming economy.

In this blog, we will dig a little deeper into why NRIs should consider investing in real estate in Lucknow and how this city offers significant benefits for those looking to grow their property portfolios in India.

1. Smart City Initiatives

In the last decade, Lucknow has undergone a remarkable transformation. The city has risen as a fast-growing metropolis with excellent infrastructure. A part of the Indian government's ambitious Smart Cities Mission, which aims to modernise urban centres and cities with cutting-edge transformation and improved services, Lucknow has transformed into one of the most liveable and sustainable cities in India. 

The smart city initiatives implemented in Lucknow include technology enhancement, the development of smart roads with surveillance systems, improved waste management, and efficient water and electricity supply. These upgrades have created a robust urban environment that has pulled NRI's to invest and extend steady growth in real estate values. 

Under the smart city mission, Lucknow has proposed to invest about 1475.44 Cr in its Area-Based Development. This has propelled the city’s initiatives to develop robust infrastructural solutions to enhance the quality of life it offers its residents. 

2. Connectivity and Transportation

The robust infrastructural development that Lucknow is undergoing has made the city incredibly well-connected, with several key roadway projects and expressways like the Lucknow-Agra Expressway, Purvanchal Expressway, and the upcoming Ganga Expressway, which will further enhance connectivity to major cities such as Delhi, Varanasi, and other parts of India. For NRIs, this enhanced connectivity is ideal as it brings greater ease of travel and an increase in property values. 

The city also boasts a fully operational metro system, which ensures easy and fast commuting within the city. Proximity to all significant accesses such as expressways, metro lines, and the Chaudhary Charan Singh International Airport adds tremendous value to the property market in Lucknow, especially for those who are looking at long-term investment returns.

All of Rishita Developers’ housing projects are located in areas that are well connected and offer ease of access to all major city points and utility facilities. 

3. Affordable Property Prices with High Appreciation Potential

Lucknow, being a Tier-2 city and that too a fast developing one, holds the advantage of affordable real estate, as compared to Tier-1 cities such as Delhi, Mumbai, and Bangalore. This proves to be an ideal investment for NRIs as the fast-paced progress also means a fast-paced increase in property values.  As Lucknow develops into an economic and cultural hub, property prices are seeing steady appreciation, making it the perfect time to invest before prices skyrocket.

4. Diverse Property Options

Lucknow offers a wide array of property options catering to different budget ranges. The improvement the city is witnessing has led to buyers and investors hounding the city, which in turn has led to developers offering real estate property options- from luxury apartments in upscale areas like Gomti Nagar Extension offering construction matching international standards to affordable housing projects in suburban regions to low-rise villas and from 1 and 2 bhk homes to 3 and 4 bhk homes, that cover buyers with all ranges of budgets. NRIs have a variety of choices based on their investment goals. 

For NRIs, investing in new-age properties means securing a hold in a market that is on the rise but still offers affordable entry points compared to other Indian cities. The long-term appreciation potential of these properties makes Lucknow a strong contender for profitable real estate investment.

Rishita Developers’ projects offer homes from 2 BHK to 3 and even 4 BHK, as well as independent low rise homes- Mulberry Villas, giving buyers variety and opportunity to diversify as per their needs and investment capacity. 

5. Higher Return on Investment (ROI)

Lucknow’s rapid development has resulted in property values appreciating over time, particularly in urban areas like Gomti Nagar, Shaheed Path, and Gomti Nagar Extension. With new infrastructure, connectivity, and amenities being offered in residential, commercial, and retail spaces, NRIs can anticipate earning a solid return on investment as demand continues to rise.

This has created a boom in the rental market in Lucknow as well. Attracting professionals, students, and businesspeople, this market has given NRIs an edge- they can purchase rental properties in prime locations and put them on rent, which can generate a steady income stream and increase property value over time.

All projects by Rishita Developers are situated in the most prime areas of Lucknow like Gomti nagar Extension and Sushant Golf City. This gives them the advantage of being high value properties and ones that are bound to give high returns. 

6. Favourable Government Policies and Regulations for NRIs

The Indian government has implemented several policies aimed at making real estate investments favourable, smoother and more secure for NRIs. 

One is the introduction of the Real Estate Regulatory Authority (RERA). This has not only brought transparency in the real estate market but also created a firewall against any discrepancies from the developer. This ensures that the developers deliver projects timely and cleanly, and prevents fraudulent means of transaction giving the buyer a secure safety net.  For NRIs, this has proven to be a boon as they can now invest with ease of mind that their investment and assets will stay protected, and bereft of delays and legal obstacles.

Under the Foreign Exchange Management Act (FEMA, NRIs investing in Indian real estate can easily repatriate rental income and proceeds from property sales. This makes it simpler for NRIs to enjoy the returns on their investments and manage their finances across borders hassle-free.

Another regulation that has benefitted NRIs is the several tax benefits under Indian tax laws. Income that is generated from real estate, can be offset by deductions on home loan interest, property taxes, and repairs, providing significant tax relief. These incentives make real estate investments even more attractive for NRIs.

7. Growing IT and Industrial Hub

Lucknow’s awe-striking progress in the areas of technology, infrastructure and real estate has resulted in the city being a burgeoning hub for ITs and ITES. The city is has witnessed a hge demand for commercial and residential real estate owing to the surge of multinational companies, IT firms and startups. 

The Lucknow IT corridor is a befitting and significant development that has catapulted the city into the spotlight. The corridor falls between Faizabad Road and Sultanpur Road and offers residential and commercial plots of various sizes and ranges. The planning, connectivity, and development in the areas located in the corridor are the major driving factors for the increased demand for the plots.

The domino effect of growth in the IT and business sectors, leading to increasing demand for both commercial spaces and high-quality housing, and ultimately leading to high investments, has been exceptionally lucrative for NRIs, as this guarantees appreciation and opportunities for leasing properties. 

8. Rich Cultural and Heritage Appeal

Lucknow may have experienced a metamorphosis, but it’s roots are still very much embedded in its rich cultural and heritage charm. This identity has bever really left the city’s essence. Owing to some of the most iconic historical structures such as Bara Imambara, Rumi Darwaza and Chota Imambara, Lucknow holds the cultural appeal. Its history is splashed with Nawabi royalty, which attracts NRIs, as it helps them stay close to heritage, and yet, gives them an opportunity to make new investments. 

This unique blend of the heritage and the modern adds to the charm, as properties situated close to the monuments not only hold a sense of pride, but also offer stunning views and aesthetics that automatically increase the property rates, and guarantee of long-term appreciation. 

To sum up, Lucknow presents a golden opportunity for NRIs seeking diversification of their real estate portfolio. The rapid urbanisation, top-notch infrastructure, affordable real estate market, long-term appreciating property arena, favourable government policies and cultural imminence have extended lucrative opportunities for NRIs to delve into Lucknow’s market with ease, confidence and transparency. They can look forward to a booming economy, a modern framework and the opportunity to be a part of India’s growth.