Union Cabinet Approves Lucknow Metro Phase-1B: A Boost for Urban Mobility and Real Estate

The Union Cabinet, chaired by Prime Minister Narendra Modi, has given the green light to Phase-1B of the Lucknow Metro Rail Project in Uttar Pradesh. This new 11.165-km corridor will feature 12 stations, seven of which will be underground and five elevated, connecting some of the oldest and most densely populated neighborhoods of Old Lucknow.

Phase-1B is designed to link key areas of Old Lucknow, which currently lack fast and reliable transport options. The corridor will pass through commercial hubs such as Aminabad, Yahiyaganj, Pandeyganj, and Chowk. It will also provide direct access to King George’s Medical University, major tourist destinations including Bara Imambara, Chota Imambara, Bhool Bhulaiya, and Rumi Darwaza, and areas renowned for the city’s traditional cuisine.

The project is estimated to cost ₹5,801 crore and will expand the operational metro network in Lucknow to 34 km. By integrating underground and elevated segments, Phase-1B aims to improve travel efficiency and reduce congestion in neighborhoods that have seen rapid urban growth. The government emphasized that the project represents a significant step in the city’s infrastructure development, offering a major expansion of the metro network in the state capital.

Real estate experts expect the new corridor to positively affect property values, particularly in Old Lucknow’s established micro-markets. Ravi Nirwal, sales director and principal partner at Square Yards, noted that the metro’s approval “is poised to positively impact property prices, especially in localities such as Aminabad, Yahiyaganj, Pandeyganj, and Chowk. While land for new development may be limited, faster travel and improved connectivity often drive price appreciation.”

Shorter commute times and easier access to commercial centers, healthcare facilities, and tourist attractions are expected to increase the appeal of these neighborhoods for both residents and businesses. Even in areas with constrained supply, upgraded infrastructure tends to generate new demand, supporting the growth of organized trading hubs and modern commercial spaces. Over time, these improvements could prompt a revaluation of property across the micro-markets served by the metro extension.

Mudassir Zaidi, executive director–North at Knight Frank India, said the expansion marks a “pivotal moment for the city’s urban fabric. By linking congested yet culturally significant areas with efficient transit, the project is expected to elevate real estate values and support broader urban renewal.” History shows that similar infrastructure interventions often lead to the redevelopment of aging buildings, organized commercial zones, and improved public amenities.

The metro expansion is aligned with broader urban planning goals, balancing heritage preservation with sustainable growth. By connecting major traffic nodes and densely populated localities, Phase-1B is expected to reduce congestion on key city roads, provide an alternative to private vehicle use, and enhance accessibility to both residential and commercial districts.

The project also highlights the importance of integrating transit development with real estate markets. Improved connectivity generally encourages investment in residential and commercial properties, even in areas where construction opportunities are limited. This can create a cycle of urban renewal, in which infrastructure upgrades attract business activity, enhance livability, and support the modernization of city landscapes while preserving historical assets.

Once operational, Phase-1B will complement existing lines, forming a comprehensive network that links central and northern sections of Lucknow with the Old City. The combination of underground and elevated sections ensures minimal disruption to established neighborhoods while improving overall accessibility.