Lucknow's Real Estate Market: A Rising Star in North India
Lucknow's real estate market has witnessed a significant metamorphosis, fuelled by robust infrastructure growth, proactive government policies, and the burgeoning IT and ITES industries.
LucknowReal Estate MarketInfrastructure GrowthIt And Ites IndustriesLogistics HubWarehousing DemandResidential PropertiesCommercial PropertiesMixeduse DevelopmentsTownshipsReal Estate NewsAug 12, 2024
In tandem, Lucknow's real estate market has witnessed a significant metamorphosis, fuelled by robust infrastructure growth, proactive government policies, and the burgeoning IT and ITES industries. This transformation has catapulted Lucknow onto the radar of discerning developers and investors, making it an attractive addition to their geographical growth plans.
According to industry data, Lucknow's real estate market slowed down from 2011-2015 due to economic and political issues, and bounced back after 2016, driven by government projects like Smart City and Lucknow Metro, growth in IT and ITES sectors, new infrastructure, affordable prices compared to other cities, investments from Indian and foreign investors, and a promising logistics hub.
Lucknow is emerging as a key industrial and logistics hub in North India, after Delhi-NCR, with over Rs 400 crore invested in the last five years by major players like Amazon and Flipkart. The city has seen a 300% increase in warehousing demand in the past three years, with a total of 5.2 million sq. ft. of warehouse stock and an additional 1.4 million sq. ft. of Grade A supply in the pipeline.
The region's strategic location, affordable land, and good connectivity have attracted several logistics companies, generated employment opportunities, and driven growth. As per industry reports, the sector has the potential to create 70,000 direct jobs and 35,000 indirect jobs in the next five years.
Lucknow's real estate market is also driven by its excellent infrastructure. The city is getting a new 150-meter-wide ring road, and a 100-kilometer Outer Ring Road, making it easier for people to get around. The Lucknow Metro is also expanding, making travel more convenient.
Other exciting projects include a Knowledge Park, an IT City, new cricket stadium, and a bigger international airport. All these developments are great news for the real estate market in Lucknow, which will drive demand and prices.
Lucknow's realty hubs include Hazratganj, Charbagh, Gomti Nagar, and Hasanganj, which are witnessing steady growth in their real estate markets. These areas offer a mix of commercial and residential properties, making them attractive destinations for investors and homebuyers.
The city is also attracting top builders from Delhi NCR and other cities, exploring development opportunities in the city. New townships are springing up along highways and peripheral areas, connecting to cities like Kanpur, Hardoi, Rai Bareli, and Faizabad.
As a matter of fact, with economic growth and better job opportunities, housing demand is also on the rise. So, if you are a homebuyer or investor, the time to buy a property in Lucknow is now. According to renowned property selling web portals, the starting price of properties in Lucknow stands at Rs. 225 per sqft. On average, the price of properties in Lucknow is Rs. 5,258 per sqft.
Major developers include Omaxe, E Square Homes Pvt Ltd, Rishita Developers Pvt. Ltd, SSN Infra, Arsha Infra Developers Pvt. Ltd, Paarth Infrabuild Pvt. Ltd, Smap Builder & Developers, Aditya Infrastructure Pvt. Ltd, Shri Balaji Construction Company, Attalika Real Estate Pvt. Ltd, Horizon Group, Signature Infra Developers Pvt Ltd, Raj Ganga Developers, SKC Builders & Developers Pvt. Ltd, Shalimar Corp, Ansal API, DLF, Eldeco, and Experion.
The residential options vary from apartments and bungalows to plots and mixed-use developments and townships. Alongside contemporary shopping malls, high-end retail outlets, and boutique stores, offering a diverse range of shopping experiences that cater to varied tastes and preferences.
Lucknow can be said to be a challenging but promising real estate market. On one hand, the city has made tremendous economic progress, but on the other hand, rapid urbanization with slow pace of city planning has led to malice like poor sanitation, inadequate garbage disposal, waterlogging, traffic congestion, energy insecurity, pollution, and illegal encroachment.
Other challenges persist, including regulatory changes and economic uncertainties. The practice of development authority allowing illegal constructions to be raised beyond the sanctioned plan and legalizing the same by way of compounding, also hurts the genuine developments and discourages organized real estate players. A fluctuating law & order situation too remains a challenge for the government, that hinders corporate establishments.
All said, there is no doubt Lucknow, a city with a rich history, is becoming a modern hub for government, culture, tourism, education, and the arts. It's growing into a smart city with great infrastructure and new industries, which will help India's economy grow.
According to Colliers, Lucknow is one of the 17 cities identified as emerging real estate hotspots in India. In just two years, property prices have risen by 25-50%, signalling a thriving real estate market in Lucknow.
Exciting projects coming up in Lucknow are Knowledge Park, IT City, and India's first AI city, a 40-acre hub for AI innovation and entrepreneurship.
Till a decade back, Lucknow's real estate market was slow and stagnant, but it has gained momentum in recent years, offering great opportunities for builders, investors, and buyers.
Frequently Asked Questions
What is driving the growth of Lucknow's real estate market?
The growth of Lucknow's real estate market is driven by robust infrastructure growth, proactive government policies, and the burgeoning IT and ITES industries.
What are the major realty hubs in Lucknow?
The major realty hubs in Lucknow include Hazratganj, Charbagh, Gomti Nagar, and Hasanganj.
What is the current price range of properties in Lucknow?
The starting price of properties in Lucknow stands at Rs. 225 per sqft, and the average price is Rs. 5,258 per sqft.
What are the major developers operating in Lucknow?
Major developers operating in Lucknow include Omaxe, E Square Homes Pvt Ltd, Rishita Developers Pvt. Ltd, SSN Infra, and many others.
What are the challenges facing Lucknow's real estate market?
The challenges facing Lucknow's real estate market include regulatory changes, economic uncertainties, and a fluctuating law & order situation.
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