Real Estate Prospects In Lucknow

Lucknow, recently, found a place in the growing list of Prime Minister Narendra Modi’s 100 smart cities mission. Experts see this city of erstwhile Nawabs as one of the fastest growing cities in the country as well as amongst the peer group of Tier II cities is now a well established fact. The move is expected to help the city see improvements in lifestyle and amenities boosting the prospect for both the realty investor and the end user.

It is likely to lead to higher level ‘Urbanization’ not only in Lucknow but in the close vicinity as well. Health and hygiene is likely to improve in the future and it is expected to generate lots of business development opportunities, particularly in the service sector, leading to higher employment. Needless to say, all these developments will be further strengthening the city’s real estate potential.

According to recent Reserve Bank of India report, Lucknow witnessed the highest increase in housing prices in the country rose during the October-December quarter of the 2015-16. On an annual basis, in Q3:2015-16, Lucknow witnessed the highest increase of 16.1 percent.

Besides, Lucknow is a very well connected city and has very good road, rail and air connectivity. It is witnessing significant infrastructure growth, including Lucknow Metro, IT City being developed by HCL Technologies, Indian Institute of Information and Technology (Lucknow) and the 1,000-bed Medanta – Awadh super-specialty hospital. All of these combined together have made the city the toast of real estate investment.

Factors Augmenting Real Estate Growth in Lucknow

Residential real estate in Lucknow has been growing exponentially in the recent past. The following reasons can be ascribed to the city's impressive growth rate.

The city is surrounded by a number of small towns and non-descript hamlets. With its urbanised infrastructure and prospects for employment, it is an attractive destination for the residents of the surrounding districts.

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Uttar Pradesh's growing per capita income has also been instrumental in boosting the demand for residential realty in Lucknow. From Rs 14,115 in FY 2006, the state's per capita income increased to Rs 26,211 in FY 2011.

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Developers such as Emaar MGF, DLF, Earth, Omaxe, Eldeco, Ansal, Rohtas, Halwasia and Sahara are launching mega projects in Lucknow. These state-of-the-art projects housing world-class social amenities are steadily transforming the residential landscape of the city.

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Land parcels are available at affordable prices as compared to the metros. Consequently, a lot of reputed private developers into the market.

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Excellent social infrastructure -good roads, hospitals, educational institutions and organised retail- is also fuelling the growth of real estate in the region.

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The upcoming metro project has also added impetus to the real estate boom in Lucknow.

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