What Drives Lucknow’s Real Estate Demand
- 25th Jul 2016
The city of nawabs has witnessed an important increase in unit demand, attracting many final - user and long term investors.
Manas Nag, a retired Central Ministry employee has settled for a semi-luxury unit in Gomti Nagar, this residence is a gift from his IIM Lucknow graduate son, who has been working with an American multinational. Today, more and more purchasers especially those who have spent their active working years in the city, are considering Lucknow is a positive transaction ground. The city of nawabs is no longer a tier- 2 city in details of its dimensions. Neither is the growth unidirectional. Development, disposable incomes, increases in the number of jobs and a resultant growth in real estate is for everyone tosees. Trend watchers believe that in the last few years, luxury plans have followed new corridors of growth and land costs have escalated.
All this hints at the rise in housing demand, attracting many end-users and long term investors.
Like Nag, a number of ministry employees and bureaucrats have also taken to the local real estate.
WHERE IS THE RESIDENTAL DEMAND MOVING TO?
As per units, Faizabad Road, Amar Shaheed Path, Gomti Nagar Extension Road and Rae Bareli Road have maximum supply of land. Ajay Prasad, a civic broker at Sairam Properties and Consultancy, says New Growth corridors have surfaced over the last few years especially along the highways that link Kanpur, Hardoi, Sitapur, Rae Bareli, Sultanpur and Faizabad. To add to its value, these are not small time planners’ project but realty giants known for their calibre across top active real estate market of country. Aiding infrastructural growth such as roadways, entertainment regions and commercial development along these regions has also emboldened purchasers.
In fact, the Gomti Nagar Zone that companies Vinhuti Khand and Vipin Khand is fast coming up as evolved secondary business district. Faizabad Road has also witnessed some economic developments.
Shankar Kishore, Private Consultant at Bibhor Lal Consultancy, says over the past five to six years, organised retail has led to the mall culture trenchant the upcoming regions. As a result, the younger generation of purchasers who may or may have large budgets but have family in Lucknow and would want an early investment, prefer settling for such regions. Most leading research and data analytics firms have listed Lucknow as a top real estate market beyond the top ten-tier-I cities. Many of these young purchaser’s property for their parents. Even purchaser from smaller towns move to Lucknow for inspirational value.
Prasad adds, Influx of the well-placed migrant population has also been drifting towards units although Lucknow has for long been known for purchasers fancying the idea of buying large tracts of plots to build nawabi residence.
The Lucknow would be a game changer in terms of real estate growth. Property values that have seen some amount of rise in the last few years will then further escalate.
If affordability is your pick, most 1 or 2 BHK units size range of 500-1500 sq.ft. within Rs 30 Lakh. If you are planning on a new land, you could also look forward to the above considered regions that boast new plans within same cost range and scheduled to be delivered by end of 2016 to 2018 timeframe. If your budget is small, you could even go for grant in plotted developments.
A majority of these plans are within Rs 10 lakh differing in sizes but mostly within 2500 sq. ft.
It is interesting to note that the aforementioned regions are no longer concentrated with a particular land segment.
Affordable lands are in vogue as much as luxury land. So, if you are a purchaser, by now you know where to invest.