Lucknow seems to be the new buzzword everywhere and why not! The capital of Uttar Pradesh is witnessing a never-seen-before infrastructural boom. Its real estate market is naturally gung-ho as a result.
Why is Lucknow the darling of real estate developers and investors today? Why it is garnering diverse big-ticket investments? Why are there so many new projects coming up in the residential, commercial, hospitality and retail segments? The answer lies in a couple of words- Future Potential. And what has created this potential of late? For starters, better governance, administrative efficiency, rapid development of infrastructure, progressive real estate reforms, enhanced living standards and sizable investments.
They have all come together to cement Lucknow’s status as the next big thing in Indian real estate. Lucknow has always been known for its pleasing mixture of classic and old-world elegance with modern development. It is after all Northern India’s second biggest city and the capital of the country’s second-biggest economy. Lucknow is already witnessing skyrocketing growth in terms of the entry of private developers and other players into the market in addition to infrastructure projects galore. These are factors clearly scaling up demand for real estate in Lucknow.
What Lucknow is currently witnessing
Enquiries for real estate have shot up considerably in not just Lucknow but also many other Tier-2 cities in India after the pandemic and its widespread effects. Lucknow has already zoomed ahead of many other destinations, finding itself a place in the IRIS (Indian residential index) as per reports. The city is already filled to the brim with numerous opportunities and developers are optimistic about it becoming a real estate hub in North India over the next 5-10 years.
Here are some other key trends that deserve to be highlighted:
- Lucknow’s industrial and manufacturing growth continues unabated. It is already a major countrywide hub for sectors like electronics, food processing, IT, banking and real estate.
- It is also a part of several upcoming industrial and growth corridors while being poised to received several big-ticket infrastructure projects.
- The rapid transformation and development of Uttar Pradesh on several fronts is already creating a positive effect in Lucknow.
- Commercial progress is leading to sizable revenues and creation of new employment opportunities. This in turn is sustaining swift growth of the residential and commercial segments in the city.
- Experts believe that Lucknow is the epicenter of Uttar Pradesh’s attempt towards building a gargantuan future economy. The city already accounts for 3.85% of UP’s GDP as per reports. It also offers great connectivity, social amenities, open areas and opportunities for investments.
- It could well become the next big realty destination, attracting more corporates, companies, investors, retailers and brands.
- The State Government has greatly emphasized on infrastructure projects like the Outer Ring Road and also the state-of-the-art Purvanchal Expressway.
- The International Airport is being expanded to serve 10 million people every year.
- The proposed Lucknow-Kanpur Elevated Expressway will be another shot in the arm for businesses while various other private industrial projects are also making their presence felt in the city.
- Top-notch healthcare and educational facilities are also contributing towards the overall growth of the city and its surrounding areas.
- Buyers are now more interested in the shift to Lucknow since the city gives them an opportunity to find bigger homes with more amenities and dedicated office spaces.
- Consumer behavioral changes are positively aiding housing growth in the city. Customers are now more aspirational and are looking beyond metropolitan centres for better lifestyles and wellness.
- Apartment and high-rise concepts are not only limited to metro cities anymore but are pervading Tier-2 cities. Lucknow is no exception.
What the experts feel
Several experts are unanimous in their opinion that Lucknow’s connectivity and heritage are two of the biggest factors that will propel it towards steady growth. It is also a preferred destination for many people coming here from nearby cities for education, employment, business and investment purposes. It has several multiplexes, parks, shopping malls and other amenities. Residential demand is already manifesting itself through more plotted developments, integrated townships and big-ticket projects. The real estate market is also being bolstered by the entry of reputed real estate brands and trusted developers.
Connectivity-wise, Lucknow is excellently linked to key cities like Delhi, Kanpur, Jhansi, Allahabad, Agra, Varanasi and many other areas. The Outer Ring Road will also connect a whopping 104 villages along with 6 state highways and 5 national highways with the city. The expansion of the Lucknow Metro is another feather in the cap for the State Government.
Business-wise, Lucknow is also doing well for itself, in keeping with the new growth wave in the entire State. The international airport, significant movement of people for business purposes, logistics networks and the metro are key growth drivers. The Outer Ring Road, as mentioned, will drive further urbanization and commercial/industrial growth. Lucknow has already seen this example with the Shaheed Path.
How the Outer Ring Road will make a difference
The Outer Ring Road is billed to be a massive game-changer for Lucknow in all its spheres. As mentioned above, there will be connections to numerous state and national highways and it will ensure future employment and business growth in the entire zone. It will enable businesses and people to easily travel from all parts of State. Traffic management will be smoother with lesser heavy vehicles entering the city. People can also expect a reduction in pollution as a result. Multiple flyovers, underpasses and bridges will ensure seamless exit and entry opportunities.
The link to the Chaudhary Charan Singh International Airport will also be improved, while the ORR will enable easier connections to Varanasi, Prayagraj, Ayodhya, Kanpur, Raebareli, Sultanpur, Sitapur, Agra, Faizabad and even the National Capital. The city may also soon get two corporations in a move that will further boost infrastructure development. Lucknow has been steadily expanding its boundaries over the last few years and regions around the ORR will offer more scope for both residential and commercial growth. Being one of the highest-populated cities in the region, Lucknow will naturally be a massive market for leading industries, corporates, brands and employers. This should create a growth multiplier effect in the years to come. IT and ITeS sectors are already booming along with healthcare, education, BFSI, real estate, manufacturing and e-commerce. Lucknow is also taking rapid steps towards swift digitization and smarter living standards. Developers are already coming up with several group housing ventures to cater to demand along with builder floors, commercial hubs, villas and retail high-streets in tandem with serviced apartments and food courts alike.
Lucknow is also attracting those looking for more open spaces, bigger homes, nature-friendly lifestyles and greater wellness. Lucknow has already been ranked at number 12 amongst 47 cities in the 2020 Swachh Survey. Civic infrastructure in Lucknow is top-notch with further improvements being made.
Big ticket deals in Lucknow
The winds of change are already visible in Lucknow with several big-ticket projects in varied real estate segments. One of the country’s biggest real estate players, Omaxe Limited, has inked its venture with Eastin Hotel and Eastin Easy, the four and three star hospitality brands of the Absolute Hotel Services Company for the management of 540 serviced apartment units at Lucknow’s Hazratganj. These will be a part of the Omaxe Hazratganj venture. This deal testifies to the growing demand for serviced apartments in Lucknow, indicating huge business and commercial possibilities ahead. AHS is one of the top hospitality management entities in all of Asia and this is the company’s first venture in Northern India. It already has 11 properties run in Eastern and Western India.
The Omaxe Hazratganj project will cover 4.13 lakh sq ft with a G+12 layout and spaces for a food court, retail outlets, and multiplex. The apartments will be run on the lines of global hotels in terms of amenities and services available. This project will naturally become a trailblazer for many similar developments in the future.
In fact, Absolute Hotel Services India has also signed another deal with developer Atharva Hotel Superfluities India for a new multi-brand 550-key hotel project. It will have the Eastin Easy and Eastin Hotel brands in the same complex as well. This project will attract travellers with various room choices, a modern microbrewery and bar, restaurant, spa, fitness centre, banquets, and swimming pool. The property lies in strategic proximity to several landmarks including the International Cricket Stadium, Police Headquarters, Medanta Multispecialty Hospital, IT City and Cancer Institute.
Lucknow is clearly moving ahead at a scorching pace in terms of infrastructure and real estate development. Expect more developers, big projects and commercial and retail growth in this part of Northern India.
