Lucknow, known for its royal splendour
and rich cultural and architectural heritage, is now fast evolving as a mecca
for modern real estate with boom in both residential and commercial real estate.
Lucknow, the city of Nawabi culture that has witnessed the highest growth rate in per capita GDP among similar cities in the country, has today grown into a bustling metropolis. Riding high on A the surging economic activity, increasing disposable income and growing aspiration for modern living, Lucknow is bracing for big time real estate growth.
The current boom in the real estate is clearly visible from the residential and commercial development spreading out of traditional areas like Hazratganj to newer emerging growth centers like Gomti Nagar, Janakipuram, Mahanagar and suburbs. So much so that real estate development has assumed significant proportions along various highways connecting Lucknow with other important destinations like Kanpur, Rai Barielly, Sitapur, Faizabad etc.
This all-round real estate growth is also marked by the entry of big national players like Ansals, Omaxe, Parsvnath, Eldeco, Sahara, Unitech etc. The scale of development can be gauged from the fact that around 100 local and outside developers are active in Lucknow and about 10,000 dwelling units and over half a dozen shopping malls are in the pipeline, besides three operational malls.
Riding the property boom, the real estate in Lucknow has vs, itnessed substantial price appreciation in the last 3-4 years. Says SK Garg Chairman, Eldeco Group, "During the last four years, land prices have gone up 100-300% while the finished products have seen 100% price increase (Rs 1100-2200 psf). Even the government agencies like Uttar Pradesh Housing Development Board (UPHDB) have increased housing prices by over 80% in the last 5 years.
The residential developments by private developers have seen even bigger appreciation. Says Shawaz Arif of Arif Industries, "Our high rise Metro City Apartment complex launched at Rs 1300 psf in 2004, today commands the price of Rs 2000 psf". With the ongoing boom, the residential prices range between Rs 1500-2700 psf. The retail real estate rental value is Rs 70-180 psf per month while the capital value varies between Rs 6000-20000 psf. The commercial office rental value in Lucknow is Rs 30-55 psf.
Prashant Khanduri of High Residential Agency TCM says that even today it makes sense to invest in property at good locations, particularly in the vicinity of malls.
Growth drivers There are several factors that are responsible for propelling the boom in Lucknow. Being an educational and economic hub, Lucknow also enjoys the advantage of a capital city of India's largest state. It has excellent air and rail connectivity. The construction of Lucknow Byepass and Lucknow- Kanpur Expressway will considerably improve its connectivity with major centers like Kanpur, Rai Barelley, Sitapur, Sultanpur etc.
Says Sunit Sachar, COO (UP), Parsvnath Developers, "Being the calpital of UP, the nerve center of both political and industrial activity, Lucknow has assumed a greater significance. There has been a desire among people to look at Lucknow for commercial and residential settlement. This, coupled with higher salary levels and aspirational living, has fuelled up real estate here". The city's good infrastructure will get a further fillip with JNURM under which a plethora of infrastructural improvements including metro/ monorail are planned.
Kushagra Ansal, Director, Ansal Housing and Constructions Limited, says that taking advantage of the good infrastructural development and friendly policies of LDA, leading developers have been able to build mega townships and malls that have contributed to the changing face of real estate in Lucknow.
With these growth drivers, newer areas of growth have emerged in Lucknow. According to 11 ammel Crow Meghraj, Gomati Nagar has come up in a big way for retailing, offices and residential developments while Sapru Marg adjoining Hazratganj is coming up well for commercial activities. Main growth corridors for office segment are along Gomati Nagar and Ashok Marg covering Malviya Marg, Rana Pratap Marg, Park Road and Sapru Marg.