Lucknow Real Estate Market: Overview
Lucknow is known as the city of Nawabs, the multicultural city is the capital city of Uttar Pradesh state in India. It is now the emerging as one of the fastest growing non-metropolitan cities. The city is located in the Awadh region and is the second largest city within the states of north India. It is bounded by the Barabanki district in east and the sitapur district in the north. The city has warm humid climate throughout the year with average rainfall.
Lucknow city is divided into old and new Lucknow on the basis of geographical location and development history. Old Lucknow is fraught with old architecture and a major part of Old lucknow is dotted with unplanned residential developments. The area is flooded by the handicraft factories for Zardozi and Chikan embroidery work. The trans-Gomti region is known as the New Lucknow. In Central Lucknow, certain prime localities around Hazratganj that are located in the cis-Gomti region (sub city of Lucknow covering localities – Hazratganj, Aminaabad, Husainganj, Lal Bagh, Golaganj, Wazirganj etc) was started to develop at a much later stage. It is equipped with well-planned roads, modern architecture with organized social infrastructure.
At present, it is a center of modern technology and it has witnessed an economic boom which is reflected if the form of real estate development of the city. Gomti nagar is an upcoming IT hub of the city. Tata Consultancy Services has been the second large establishment in Uttar Pradesh.
Connectivity and Infrastructure
Road connectivity:The city is connected by four National Highways (NH 24, NH 25, NH 28 and NH 56) and four State Highways (SH 25, SH 36, SH 56 and SH 40).
Railway stations: There are 13 railway stations within the city boundary and the main railway station is located at Charbagh.
Airport: Chaudhary Charan Singh International Airport is located at Amausi, which is 20 km away from the city center. The airport is recently upgraded with new Domestic terminal.
Metro Rail: There are three proposed corridors for metro rail service which are expected to boom the real estate market:
- North corridor: Amausi to Munshipullia
- Gomti Nagar link train to Indra Nagar tri-section.
- East corridor: Lucknow Railway station (Charbagh) to Vasant kunj
Lucknow is major city from social infrastructure having prestigious Lucknow University, KGMC Medical College, SGPGI and IIM-Lucknow. Although, there are many international schools and other private colleges in and around the city. Six-lane expressway has been proposed from Agra to Lucknow, via Mainpuri, Kannauj. After completion of this expressway, Mainpuri is expected to become a new business Zone creating opportunities for development. Lucknow also has many parks it being capital city of Uttar Pradesh.
Real estate overview
The city has witnesses a radical growth along the Faizabad Road and State Highways, hence producing new localities on the real estate development map. Currently, the Lucknow’s real estate market is buyer’s market. In New Lucknow, the participation of investors is approximately 40%, it is expected to escalate in the future. The real estate market is driven by the bureaucrats, politicians, public/government servants, emerging IT/ITeS industry in the city due to good infrastructure, planned development in some localities, and good connectivity and original inhabitants of Lucknow who have now migrated outside. During the FY 2011-12, the average price appreciation in certain localities has been in the range of 8 – 15 %, which shows stability with a slight upward bias.
Various mega projects with world class social amenities by reputed private developers (DLF, Rohtas, Eldeco, Halwasiya, Emaar MGF, Ansals, Unitech and Sahara) are changing the face of residential real estate in the city. Compared to other metropolitan cities, land is available at affordable price, this has led private developers to venture into the market.
Major Localities in Lucknow: Gomti Nagar Phase I, II and Extension, Indira Nagar, Chinhat, Faizabad Road, Rabindra Palli
