Rising affordability, infrastructure development, and changing lifestyle preferences are making Indian Tier 2 cities the new real estate growth engines. While many cities are witnessing a slump in real estate momentum, Lucknow has emerged as a striking outlier.
Rising aspirations, infrastructure-led planning, and a proactive private sector that has quickly adjusted to changing consumer preferences have all contributed to this growth.
Alongside Lucknow, Western India, including Ahmedabad, Surat, and Gandhinagar, contributed 79% of total units sold and 74% of the overall sales value. Meanwhile, state capitals including Jaipur, Bhubaneswar, Goa, and Bhopal accounted for 25% of all sales and 30% of the total sales value, showing a 17% increase in revenue.
Additionally, government projects under AMRUT and the Smart City Mission are transforming the urban environment and making the city a better place to live and strengthening civic infrastructure. Moreover, a continuous flow of people from smaller towns is making their way to the city, hoping to get access to better employment, healthcare, and education facilities. Developers are crucial in transforming Lucknow's skyline and residential texture as infrastructure sets the stage for city rejuvenation.
Mohit Goel, Managing Director of Omaxe Group, says, “Lucknow is no longer just a cultural capital; it’s becoming an investment hotspot. The transformation is driven by smart infrastructure upgrades that ease mobility and unlock real estate corridors. Connectivity through major expressways like the Purvanchal, Lucknow-Agra, and upcoming Ganga and Kanpur-Lucknow Expressways, along with metro expansion, has brought the city’s real estate to an inflection point, especially in strategic locations like Outer Ring Road and Raebareli Road. Besides, investors also view Lucknow through a long-term lens, fueled by confidence in planned urbanisation and rising economic activity. Hence, we believe that with a growing habitation in and around the city, Lucknow’s real estate will continue to rise.”
In addition to infrastructure-driven momentum, Lucknow’s real estate surge is being propelled by the emergence of high-performing micro-markets that present compelling investment potential. As per a report by Colliers, areas like Gomti Nagar Extension have witnessed notable appreciation. Over the last ten years, the average land price for plotted developments has increased by 1.7 times to approximately ?7,500 per square foot. With a predicted 1.5x increase over the next five years and a 1.9x increase by 2035, this trend is anticipated to continue.
Another notable area is Amar Shaheed Path, where land prices have increased by 2.4 times over the past ten years to about ?4,700 per square foot. According to projections, the value will increase by 1.9x by 2030 and 3.0x by 2035. With land prices currently averaging ?3,900 per square foot, a 3.5x increase over the previous ten years, Raebareli Road is also quickly becoming a prime corridor. With a possible 2.0x increase in five years and a 3.4x increase by 2035, the outlook is similarly optimistic. These numbers demonstrate that Lucknow's growth story extends beyond its iconic sites; the city's micromarkets are developing into long-term value centres for investors and end users.
Yash Miglani, Managing Director, Migsun Group, says, “Lucknow is no longer just another Tier-2 city; it’s rapidly emerging as a prime real estate hotspot. The scale and speed of infrastructure development here are unmatched, fundamentally changing the investment landscape. We’re seeing demand spike across all residential segments, driven by buyers who refuse to compromise on quality or lifestyle. Hence, it’s clear that Lucknow is setting a new benchmark for organised housing in Tier-2 India.”
Neeraj Sharma, Managing Director, Escon Infra Realtors, says, “We believe that Lucknow is unquestionably at the forefront of the real estate boom. Large-scale infrastructure initiatives like the Ganga Expressway, Purvanchal Expressway, and Kanpur-Lucknow Expressway are opening up new growth corridors and revolutionising connectivity. Additionally, micromarkets like Shaheed Path and Gomti Nagar Extension are in high demand as they provide a special combination of affordability and contemporary, future-ready development. Thus, Lucknow isn’t just keeping pace with Tier-2 growth; it’s paving the way for profitable returns.”
Thus, through strategic growth and a changing urban identity, Lucknow has established itself as a leader among India's Tier-2 cities, changing the real estate market. The city continues to stand out as a desirable location for investors and homebuyers seeking sustainable growth, high living standards, and long-term value.
