Lucknow, the capital of Uttar
Pradesh, is famous for its rich cultural heritage. At present, it is also one
of fast emerging metropolis in the country. Lucknow is on the list of being
declared as a smart city. The city has
witnessed a level of investment and influx of migrant population. Several
industries and government organizations have opened offices in Lucknow. In a
nutshell, Lucknow is experiencing economic boom. Together with the economic
boom, the real estate market of Lucknow is also booming. It has become one of
the preferred destinations for people residing in other cities of Uttar Pradesh
as well. Investors are flocking in from different cities of Uttar Pradesh such as Allahabad,
Bahraich, Barabanki, Kanpur, Sitapur, Sultanpur, Varanasi, and Unnao to Lucknow
in search of their dream home.
As per the data available in 2018, the National Housing Bank’s price index for under
construction properties has recorded an overall increase in 39 cities with the
maximum price growth of 9.4% recorded in Lucknow.
As per the data available in 2018, the National Housing Bank’s price index for under
construction properties has recorded an overall increase in 39 cities with the
maximum price growth of 9.4% recorded in Lucknow.
It is abundantly
clear from the above – the real estate market in Lucknow is booming. But ever
wondered why did the sudden boom in real estate sector happen? We have set out
a few key reasons responsible for the growth story of real estate in Lucknow.
As indicated above,
there are several reasons that have led to the massive boom in the real estate
market in Lucknow.
Social Infrastructure:
Lucknow is very well connected when it comes to the social infrastructure. The
city has four highways: NH 24 connects Delhi, NH 25 connects Bhopal via Jhansi,
NH 28 connects to Mokama (Bihar), NH 56 to Varanasi and four State highways
viz. SH 25 connects Hardoi, SH 36 connects Rae Bareli, SH 56 connects Sultanpur
and SH 40 connects Mohaan. Amar Shaheed
Path or an elevated road, starts from Gomti Nagar and ends at Kanpur Road and
connects large parts of the city. Lucknow also enjoys great rail and air
connectivity. The icing on the cake has been the development of Lucknow Metro.
This has resulted in the development of a number of real estate projects.
The
Real Estate Developers: Residents of Lucknow are attached to the city. They have bought
plots of land for their forever homes. Research indicates that Lucknow has
witnessed private developer presence
more than 30 years ago with planned plotted developments by some local
developers. In the last few years, several real estate developers have entered
the market. These developers have helped in the establishment of multi storied
projects and modern townships. The
developers have also purchased plots of land which are auctioned by the Lucknow
Development Authority or the Uttar Pradesh Housing and Development Board.
Majority of these lands are in and around Faizabad Road, Gomti Nagar Extension,
Rae Bareli Road and Hardoi Road. Accordingly, a number of real estate projects
have come up in these areas.
The Boom in Population: Lucknow has also witnessed a phenomenal
growth over the last few years. Policy initiatives of the government and the
boom in the economy have resulted in job opportunities, growth of business and
a better standard of living. This has also led to an increase in the population
of the city. People from neighbouring cities are now migrating to Lucknow in
search of a better quality of life. This has provided a boost to the realty in
Lucknow as well.
Easier Sources of Finances: Borrowing a home loan has become easier than
before. Banks and NBFCs have slashed the home loan rates substantially. In fact, SBI offers the lowest home loan Interest Rate Starting at 8.40%. Access to cheap home loan rates also means
that people have more liquidity to afford real estate. As a result, the real
estate sector has received a fillip.
Rise
of Medical Tourism in Lucknow: The city is a growing hub of medical tourism. It
attracts a lot of patients from Nepal every year. The government of Uttar
Pradesh is committed to make Lucknow one of the top medical destinations in the
country. Several multi speciality hospitals have been set up in Lucknow with
world class facilities. This has resulted in the influx of both patients and
medical professionals looking for housing options in Lucknow. Therefore, rise
of medical tourism has also led to the growth of real estate developers in Lucknow.
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