LUCKNOW THE NEXT BIG THING IN REAL ESTATE

BY Remona

Lucknow is playing an integral role in Uttar Pradesh’s march towards its goal of becoming a $1-trillion economy. The city contributes 3.85% of the state’s GDP. Reinforced by excellent connectivity, the presence of social infrastructures, open spaces, and investment opportunities,it is all set to become the destination next, for real estate in the country. No wonder, the city in North India and the second -strongest in the state economy, Lucknow is rapidly attracting private players who are making huge investments and accelerating demand for realty assets.

The real estate sector in UP as a matter of fact, has made impressive progress despite the negative impacts of the pandemic. Even in the most critical times of the global pandemic, home buyers, and developers, continued to show their interest in investing in Lucknow.

In the last two years, the city witnessed a huge boom in the real estate market where property price appreciation has been at the tune of 25-50%. In the present times, investors from various cities in and around Uttar Pradesh are looking at Lucknow as the best and the most promising real estate market in the times to come.

WHAT MAKES THE CITY SO REWARDING

Lucknow’s infrastructure development and heritage are two of the biggest factors that are propelling the city towards its steady growth. Residential demand is already manifesting itself through more plotted developments, integrated townships, and big-ticket projects.

In addition, the economic growth with big ticket investments coming to UP is leading to sizable revenues and the creation of new employment opportunities. Lucknow is also a part of several upcoming industrial and growth corridors. These rapid transformations and development of Lucknow on several fronts is creating a positive effect on investors and attracting buyers to Lucknow.

In order to encourage high density urban clusters, the UP government has also come up with a transit-oriented development strategy for regions within 1.5 km of the rapid train track. This will allow developers to request higher FARs (floor area raito). The development of "sustainable urban growth centers'' centered on public transportation networks like the Metro, Bus Rapid Transit System (BRTS), and Rapid Rail Transit System is to provide access to all residential and commercial amenities within a "walkable" area so that people don't have to travel large distances in private vehicles for work or other errands.

Furthermore, the Agra- Lucknow Expressway which will be linked to the Yamuna Expressway will enhance the connectivity between Lucknow & NCR. Outer Ring Road will also connect 104 villages along with 6 state highways and 5 national highways with the city. The expansion of the Lucknow Metro is another feather in the cap for the State Government.

The LDA or Lucknow Development Authority has taken up to develop a 150 meters wide ring road, Knowledge Park between the Jail Road and Mohan Road, a 100-kilometer Outer Ring Road, etc. As per the Master Plan 2021, to cater to the huge migratory population of nearly 65 lakh people by 2031, the Town and Country government has started various infrastructural development projects in the city.

THE CHALLENGES TO THE GROWTH

The Uttar Pradesh real estate is marching towards becoming professionalized but, trust deficit between developers and buyers remains in most cities of the state given several instances of failure to deliver or excessive delays. Also as per CREDAI- UP, illegal colonies by scrupulous developers that come up without approved layout plan are a challenge for legal colonies. Moreover, developers of such projects do not pay development charges to authorities causing revenue loss to the state government. Rising raw material prices, land title issues and single window clearance are some of the other concerns of the developers of the region.

FUTURE OF CITY OF NAWABS

Lucknow, well-known as the City of Nawabs from yesteryears is turning into a cosmopolitan city. From the recent opening of retail malls by domestic and international retail chains to receiving FDI to the tune of USD 788.55 million last year and current 40 mega projects of big foreign companies ongoing in the state, Lucknow is becoming the epicenter of all the action.

Under the Ude Desh ka Aam Naagrik scheme (UDAN) new airports are being built, which will foster the region's economic growth and help the realty sector considerably. For the real estate investor, there are options aplenty in the current boom. In the future, Lucknow will be at par with the metros and offer plenty of investment opportunities in residential and commercial segments. Lucknow is giving enough reasons to believe its growth momentum is just a beginning and has a long way to go.

INDIAN REAL ESTATE INDUSTRY IS PREDICTED TO REACH USD 1 TRILLION BY 2030 AND TIER 2 CITIES SEEM TO BE AT THE FOREFRONT OF THE EXPECTED GROWTH. LUCKNOW TILL NOW A POOR COUSIN TO NEARBY DELHI IS ALL SET TO SPREAD ITS WINGS WITH THE RECENT ANNOUNCEMENT OF UP GOVERNMENT TO DEVELOP LUCKNOW AS STATE CAPITAL REGION ON LINE OF DELHI NCR.

UTTAR PRADESH MAY STILL HAVE A LOT OF CATCHING UP TO DO ON SOCIAL PARAMETERS, BUT IT IS GIVING OTHER CITIES TOUGH COMPETITION IN EXPRESSWAYS AND INFRASTRUCTURE TRANSFORMATION. THE STATE CAPITAL OF UTTAR PRADESH IS NOW A CONNECTING LINK BETWEEN THE CITIES OF THE STATE AND THE NATIONAL CAPITAL REGION (NCR). 

Tags : Lucknow Uttar Pradesh City Lifestyle Investment Development Challenges GDP economy home buyers infrastructure townships Lucknow Development Authority