How Lucknow Managed Double-Digit Price Growth In Hard Times?
When India’s real estate markets started showing signs of distress at the beginning of 2014, experts went into a frenzy and predicted major price correction across the country’s established and evolving markets. Those experts would certainly have to eat their words if they were to be probed now since several markets in the country, data show, have seen upwards movements in property prices.
Uttar Pradesh capital Lucknow could be cited as a case in point here. Latest numbers available on the Reserve Bank of India’s House Price Index show rates of property in the City of Nawabs increased over 13 per cent in the past five years. Private estimates also show homes sales in the city have been growing in the past half a decade even developers with projects in megacities struggled to find takers.
One would not wonder how Lucknow managed to do that if they knew the city closely. This city with its grand-old history happens to be the capital of India’s most populous state. People from small cities also move to capital Lucknow in large number every year in search of employment opportunities. The presence of academically acclaimed educational institutions, which includes the King George Medical College and the Lucknow University, also drives students in great number to Lucknow every year. This new population, in turn, drives the demand for residential and rental real estate here.
Now, it would be a mistake to think all this demand is state-centric.
Sensing the growth potential, domestic and NRI investors are seen betting big on real estate destinations such as Lucknow which offer a great return on investment. Several studies done on NRI investment patterns show that.
Mega infrastructure projects for the city were announced right in time to add to the many charms Lucknow as a real estate destination already had.
New ingredients in good-old recipe
Lucknow is a food lover’s delight; its Awadhi cuisine is something to die for. The same could be said about those who appreciate handloom work- connoisseurs swear by the local chikan work. When the government decided to turn this old city into a new-age model by including it into its smart city list, it only displayed its commitment to further improve the prospects of a city that is already in the goods books of the investors. Some of the efforts made to turn the city smart are already showing results.
Lucknow is one of the first state capitals to get a Metro network in place. Some major areas of the city, including the airport and the railway station, already are on the Metro route. Work is on in full swing to expand the Metro network across the city.
Another landmark change that has re-defined Lucknow’s connectivity status is its highways. Using the Lucknow Agra Expressway and the Yamuna Expressway, a traveller can reach national capital Delhi in flat five-six hours. How good is that, right?