Lucknow Real Estate Taking Centerstage

By: Sanjeev Arora, Director, 360 Realtors

The real estate sector in India is once again on an upswing with sales picking up in major markets.  While in the north, demand in Gurgaon and Noida is gaining momentum, there is another city where a new trend is unfolding. Lucknow, located close to 7 hours from the national capital, is registering a monumental shift and is becoming a thriving ground for business and real estate.
 

Once known as the City of Nawabs and the Constantinople of the East, Lucknow is aggressively climbing the growth curve.  Looking at the commendable pace at which the prices are rising at Lucknow, not just end users but investors are also mulling investing in the city’s property market.

Lucknow comprises close to 3.9% of UP’s GDP, making it a Rs 90,000-crore economy. The city is spread across 2500 sq km. It is conveniently linked to Delhi via the Lucknow expressway and Yamuna expressway while via the Purvanchal expressway, it is connected to eastern UP.

In the recently concluded UP Investor Summit, Lucknow witnessed a total investment of over INR 56,000 crores. This is higher than the expected investment benchmark of 50,000 crores.

Meteoric Infrastructure Growth Continues 

Lucknow is witnessing a tremendous spurt in infrastructure development. It is part of the expansive defence corridor in the state of Uttar Pradesh, which also includes Kanpur, Jhansi, Aligarh, Agra, and Chitrakoot. The overall corridor has seen investments/MOU of INR 50,000 crores. Under the ambitious project, the Brahmos missile production will take place in Lucknow, which will be a joint partnership between Russia and India. The Brahmos missile production is spread across 200 acres and will produce close to 80-100 missiles annually.

Like other metros, work is ongoing at full pace to develop the Outer Ring Road in Lucknow. Already, ~ 70 km of the 104-km-long road is complete. The 8-lane ORR will pass through multiple state and national highways and offer heavy trucks an alternate route.

One of the largest urban mass transit systems in UP is being built in the form of the Lucknow metro. 23 km of the first phase is operational with a daily footfall of around ~ 55,000. Work on the second phase will commence in 2024 and is expected to be finished by 2029. The second phase will cost around 4600 crores and once completed will manage 67,000 passengers, 

A 7500-crore green corridor will be built in Lucknow connecting the eastern and western ends of the city. Already, the first phase costing 1500 crore has commenced operations. The four-lane roadway project will connect IIM road to Kisan Path in Lucknow and will alleviate current traffic woes thorough significant decongestion.

Like other major cities in India, Lucknow airport is also getting a facelift with an infusion of INR 5,000 crores. The present capacity of the airport is slated to reach 8 million after the completion of the initial phase of redevelopment.

Carving its niche as a business and IT hub
Lucknow is slowly upping its ante to become an IT hub in north India. Already major IT giants such as TCS, Amazon, Wipro, and HCL are operational. The state government is building an IT city in Lucknow, which will spread across 100 acres. The ambitious project developed in partnership with HCL will cost 1500 crores.

Another inherent advantage of Lucknow is the availability of premier institutes such as IITs and IIMs, which gives easy access to highly qualified manpower. While IIM is present in the city itself, the IITS is operational in close vicinity, (Kanpur and Varanasi.)

Recently, the state government has given the nod to private parties to develop dedicated industrial and business parks. Under the new legislation, 10-50 acres of land will be offered to private entities such as investors, investment consortiums, commercial houses, etc. to develop business and industrial parks. The state government will also provide a financial impetus of 2500 crores. This will further help in improving the overall business climate and unlock new opportunities.

In the times to come, Lucknow is poised to be a realty hotbed in North India. The growing concentration of private sector and government enterprises, a distinct cosmopolitan appeal, and evolving lifestyle backed with a spurt in social and physical infrastructure investments will continue to transform the landscape of Lucknow. Already numerous big developers including Omaxe, Shalimar, Rishita, Eldeco, Experion, and Oro are extending their footprint in the city of Nawab. In the coming future, more big developers are expected to join the bandwagon.