Property Investment in Lucknow: All You Need to Know

Lucknow, the city of Nawabs, is situated along the serene banks of the Gomti River. It has a rich cultural heritage and is renowned for its 'Tehzeeb,' encompassing art, music, and poetry. As The Capital of Uttar Pradesh, Lucknow stands as a beacon of elegance and charm in northern India. Known affectionately as the "golden city of the east," Lucknow offers investors promising opportunities in property amidst its historical grandeur and modern developments.

What Is Property Investment in Lucknow?

Property investment in Lucknow offers a lucrative opportunity due to its thriving economy, improved infrastructure, and strategic connectivity. The city's expanding commercial and residential sectors, driven by developments like the Kisaan Path and the Lucknow Metro, make it a prime destination for investors. Lucknow was known for very few IT companies. But now, it has become a place for many MNC companies like Infosys, TCS, HCL, Amazon, Wipro, and Capgemini.

Renowned educational institutes, cultural significance, and tourist attractions further enhance Lucknow's appeal. Notably, areas like Gomatinagar and Hazratganj showcase substantial property appreciation, promising a high return on investment in the evolving real estate landscape.

Factors To Consider Before Investing in Lucknow Real Estate

Economic Growth

Lucknow's economic growth catalyses property investment. With the emergence of IT parks and commercial hubs like Hazratganj, the city has positioned itself as a significant player in the IT and software services sector. Lucknow ranked sixth among India's top developing business destinations in 2020, indicating its upward trajectory.

Infrastructure

Lucknow's infrastructural development is pivotal in its real estate market dynamics. The expansion of the metro rail network and construction of new highways, flyovers, and ring roads have not only improved city accessibility but also spurred the development of residential and commercial areas.

Affordability

Lucknow offers relatively affordable real estate prices compared to metropolitan cities like Delhi and Mumbai. This affordability factor, combined with the city's economic growth and infrastructural advancements, makes it an attractive destination for property investment.

Rental Yield

Lucknow's growing rental market presents an additional avenue for property investors to generate income. The city's increasing population, influx of professionals, and presence of educational institutions like CMS and GD Goenka School contribute to a high demand for rental properties. The average rental yield in Lucknow is 3.98%.

Potential for Growth

Lucknow's potential for growth is evident in its expanding economy, improving infrastructure, and increasing demand for real estate. As the city continues to urbanise and develop, ample opportunities exist for property appreciation and wealth accumulation. Stay informed about upcoming projects, government initiatives, and market trends to capitalise on Lucknow's growth potential.

Demand of the Location

Before investing in Lucknow real estate, consider the demand for properties in specific locations. Areas like Gomti Nagar, Indira Nagar, and Alambagh are witnessing high demand due to their proximity to commercial centres, educational institutions, and transportation hubs. For instance, Gomti Nagar, known for its planned layout and amenities, has seen a surge in demand for residential and commercial properties.

RERA (Real Estate Regulatory Authority)

When investing in Lucknow's real estate, ensure the project is registered under the Real Estate Regulatory Authority (RERA). RERA ensures transparency and protects the interests of homebuyers by regulating the real estate sector. It mandates that developers adhere to timelines, quality standards, and financial disclosures, safeguarding investors' rights.

Builder

The reputation of the builder is paramount when investing in Lucknow real estate. Choose builders with a track record of delivering quality projects on time. Builders like Ansal API, Omaxe Group, and Eldeco Group have established themselves as reliable players in Lucknow's real estate market, and they are known for their commitment to quality construction and customer satisfaction. Researching the builder's past projects, reviews, and market reputation can help mitigate risks associated with the investment.

Steps To Invest in a Property in Lucknow

Step 1: Conduct a market survey to establish your investment budget.

Initiate your property investment journey in Lucknow by researching the real estate market and determining your investment capacity. Take into account factors like property prices, location, and potential returns to refine your budget.

Step 2: Narrow down your options by shortlisting properties that align with your criteria.

Refine your choices by selecting properties that meet your specific requirements. Consider factors such as location, size, amenities, and growth potential to create a shortlist of promising options.

Step 3: Schedule visits to the shortlisted properties to evaluate their various aspects, including infrastructure and accessibility.

Arrange site visits to personally assess the properties. Evaluate factors like infrastructure quality, proximity to essential amenities such as hospitals and schools, transportation options, and the overall neighbourhood ambiance to make an informed decision.

Step 4: Before finalising a property, conduct a thorough background check and verify all property documents.

Prior to making a decision, conduct a comprehensive background check on the seller or builder. Verify the authenticity of all property documents, including ownership records, land titles, and approvals from local authorities, to ensure there are no legal issues or encumbrances.

Step 5: Once satisfied with the property, prepare all necessary documentation for the purchase.

After confirming the property's legality and suitability, gather all required paperwork for the transaction. This includes drafting a sale deed, purchase agreement, and any other relevant documents to formalise the purchase process and avoid future complications.

Step 6: Complete the purchase by paying and covering stamp duty and registration charges.

Finalise the property acquisition by fulfilling the payment terms as agreed upon. Ensure to comply with stamp duty and registration fee requirements to legalise the transaction and secure your ownership rights.

Benefits of Investing in Lucknow Real Estate Property

Rapid Development and Advancement

Lucknow, being The Capital, is at the forefront of development initiatives in Uttar Pradesh. Notably, it's included in the fast-track smart cities list, ensuring a surge in developmental projects like the Gomti River Front Project and the Lucknow Metro Rail Program. These initiatives promise infrastructural growth and open avenues for job opportunities, making Lucknow a hotspot for real estate investment.

Lucknow Metro

The swift expansion of the Lucknow Metro offers residents a convenient and eco-friendly mode of transportation. Notably, it's one of the fastest-built metro systems globally, enhancing connectivity within the city. With improved transit options, real estate values are set to rise, making it a lucrative investment opportunity.

Variety of Properties

Lucknow caters to diverse preferences with a range of property options. From compact 2 BHK flats to luxurious villas, renowned developers like Rohit Group and Purvanchal Projects ensure there's something for every homebuyer. This variety ensures that individuals can find a property that aligns with their lifestyle and budget.

Uplifted Lifestyle

Luxurious amenities integrated into residential townships like Rishita Mulberry Heights elevate residents' living standards. From yoga centres to clubhouses, these amenities enhance the quality of life, making Lucknow an ideal destination for those seeking an elevated lifestyle experience.

Affordable Living Expenses

Lucknow stands out for its affordable cost of living and welcoming residents from all economic backgrounds. Compared to other metropolitan cities, living expenses in Lucknow are comparatively lower, ensuring a comfortable living experience without straining finances.

Seamless Connectivity

Lucknow boasts seamless connectivity through various modes of transportation, including road, rail, and air. Highways like NH28, NH25, and NH56 pass through the city, coupled with excellent bus facilities, allowing residents easy access to neighbouring cities. The ongoing outer ring road project further enhances connectivity, making Lucknow a well-connected urban centre.

Top Locations for Real Estate Property Investment in Lucknow

Hazratganj

Hazratganj, nestled in the heart of Lucknow, is a posh residential neighbourhood exuding Victorian charm. Home to prominent figures and featuring the city's first shopping mall, Saharaganj Mall, Hazratganj offers luxury and convenience. With renowned biryani joints and upscale living, property prices here start around Rs. 80-85 lakh for a 1BHK. Protostar Celestia is one of the premier residential projects in the region.

Gomti Nagar Extension

Situated along the banks of the Gomti River, the Gomti Nagar Extension has witnessed a transformation with the construction of the Bund in 2009, mitigating flood risks. This locality offers affordable prices compared to posh areas and excellent connectivity via Amar Shaheed Path and National Highways. Shalimar Gallant West, and 10AK Atmos are some of the exquisite residential projects in the region. Property rates hover around Rs.3200 - 3700 per sq ft, making it an attractive investment option.

Raebareli Road

Raebareli Road, with its six-lane National Highway 24-B, has emerged as one of the fastest-growing areas connecting Lucknow to Raebareli and Allahabad. Affordable land prices have attracted industries and government organisations, fueling residential real estate growth. With abundant social infrastructure options, property values range from Rs. 3000 - Rs. 3400 per sq ft.

Butler Colony

Known for its superior social infrastructure, Butler Colony offers many housing options, from luxury villas to modern apartments. With top educational institutes, hospitals, and dining spots, this locality caters to discerning buyers. Diverse projects like the Rudra Twin Towers, GC Signature, and GC Cloud Nine provide diverse investment opportunities suiting varied budgets.

Charbagh

Charbagh, acclaimed for its exceptional living experience, hosts Lucknow's central railway station and a well-connected metro network. Offering lavish amenities and poised for future price appreciation, investing in Charbagh promises lucrative returns. Its strategic location and modern facilities make it a prime real estate destination in Lucknow.

Jankipuram

As one of Lucknow's prominent suburbs, Jankipuram offers a tranquil lifestyle away from the city's hustle and bustle. Boasting excellent infrastructure and easy access to social amenities, this area appeals to those seeking peace and convenience. With affordable options, a 2BHK in Jankipuram can be secured for approximately Rs. 28 lakh, making it an attractive prospect for real estate investment. Oro Elements, Oro Ajit Atlantis, and Oro City are some of the renowned projects in the area.

Conclusion

What is property investment in Lucknow?

Property investment in Lucknow presents a promising opportunity due to its growing economy, enhanced infrastructure, and strategic location. With the emergence of multinational companies, renowned educational institutions, and cultural landmarks, areas like Gomatinagar and Hazratganj are witnessing significant property appreciation, ensuring favourable returns for investors.

Factors to consider before investing in Lucknow real estate

• Economic Growth
• Infrastructure
• Affordability
• Rental Yield
• Potential for Growth

Steps to invest in a property in Lucknow

• Step 1: Conduct a market survey and finalise your investment budget.
• Step 2: Shortlist a few properties based on your requirements
• Step 3: Plan a field visit to the properties to assess their various aspects, such as infrastructure, transportation facilities, hospital proximity, etc.
• Step 4: After finalising a property, do a background check and check all the property documents.
• Step 5: Prepare all the necessary documents, such as the sale deed, agreement, etc., to purchase the property.
• Step 6: Go ahead with paying for the property. Remember to pay the stamp duty and registration charges as well.

Benefits of investing in Lucknow real estate property

• Rapid Development and Advancement
• Lucknow Metro
• Variety of Properties
• Uplifted Lifestyle
• Affordable Living Expenses
• Seamless Connectivity

Top locations for real estate property investment in Lucknow

• Hazratganj
• Gomti Nagar Extension
• Raebareli Road
• Butler Colony
• Charbagh
• Jankipuram