Lucknow: Among India's 17 Emerging Real Estate Hotspots

2024-07-27 05:26:04

Lucknow, the capital of Uttar Pradesh and often referred to as the ‘City of Nawabs’, is renowned for its rich culture, glorious history, and magnificent architecture. In recent years, however, it has also emerged as a key player in the flourishing real estate sector for reasons that go beyond its storied past.

According to Colliers’ recent report, ‘Equitable Growth and Emerging Real Estate Hotspots,’ Lucknow is one of 17 cities identified as emerging real estate hotspots in India. This recognition highlights the city’s potential for substantial growth in the coming years.

Badal Yagnik, CEO of Colliers India, said, “Smaller cities are evolving as dynamic contributors to India’s economy, driven by improved infrastructure, affordable real estate, skilled manpower, and government initiatives.”

India’s real estate market is experiencing rapid growth, with Colliers estimating it will reach USD 1 trillion by 2030 and USD 5 trillion by 2050. This remarkable pace is encouraging investors to explore new opportunities beyond the traditional real estate hotspots of Mumbai, Bengaluru, and Delhi/NCR, where property prices are skyrocketing. Lucknow stands out as a prime choice among these emerging cities for investors interested in real estate.

“This growth is set to propel the real estate sector to an estimated USD 1 trillion by 2030 and potentially USD 5 trillion, a 14-16 percent share in GDP by 2050,” Yagnik added.

The Rise of Lucknow in the Real Estate Sector

Lucknow’s inclusion in Colliers’ list of emerging real estate hotspots is driven by factors such as economic growth, urbanization, and infrastructural development. Numerous real estate companies are making substantial investments to develop residential societies in Lucknow.

Key Factors Making Lucknow an Emerging Real Estate Hotspot

1. Economic Growth & Employment Opportunities:

With rapid growth in sectors like IT, retail, and manufacturing, Lucknow is experiencing a surge in economic activities beyond its traditional industries of education and administration. This growth is driving demand for commercial spaces and residential plots in the city.

2. Strategic Location:

Lucknow is strategically positioned and well-connected by railway, road, and air to major cities like Delhi, Kanpur, Varanasi, and Agra. The upcoming Gorakhpur Link Expressway, along with the existing Lucknow-Agra Expressway and Purvanchal Expressway, enhances the city’s connectivity.

3. Infrastructural Developments:

Infrastructural development, including improved road networks, better public transportation, and the Lucknow Metro, has revolutionized the city’s mobility. The establishment of numerous SEZs (Special Economic Zones) and the development of the IT City have increased the demand for office and residential spaces.

4. Cultural & Lifestyle Appeal:

Lucknow boasts a rich cultural heritage combined with modern amenities, offering a high quality of life that attracts both locals and newcomers. The city is home to premier educational institutions, healthcare facilities, and shopping malls, such as IIM Lucknow, IIIT Lucknow, Sanjay Gandhi Postgraduate Institute of Medical Sciences (SGPGIMS), King George’s Medical University (KGMU), La Martiniere College, and St. Francis’ College, making it a preferred destination for both families and professionals.

5. Government Initiatives:

The government has selected Lucknow for development as a smart city, along with various other projects that create a conducive environment for real estate investments. Government policies aimed at affordable housing and infrastructural development are impressive, leading several real estate players to initiate residential projects in Lucknow.

Other Emerging Real Estate Hotspots

In addition to Lucknow, Colliers India has identified 16 other cities as emerging real estate hotspots:

Central India: Indore, driven by its strategic location and growing industrial base.

North India: Ayodhya, Amritsar, Jaipur, Kanpur, and Varanasi, recognized for their economic growth and enhanced infrastructure.

East India: Patna and Puri, identified as key growth hotspots. Patna is witnessing rapid urbanization, while Puri holds great religious significance and is poised to become a key destination for real estate investors and tourists.

South India: Tirupati, Kochi, Coimbatore, and Visakhapatnam, emerging as real estate hotspots due to strong local economies and infrastructural development.

West India: Nagpur, Dwarka, Surat, and Shirdi, driven by rapid infrastructural expansion and industrial development.

Conclusion

Colliers has identified 17 Indian cities as emerging real estate hotspots. With the continued growth of India’s real estate sector, these burgeoning cities provide investors with excellent opportunities to flourish their businesses outside the already saturated areas of Mumbai, Delhi/NCR, and Bengaluru. By tapping into these markets, investors can not only reap good returns on their investments but also enhance their portfolios in the coming years.

Lucknow and the other identified cities are poised to play a crucial role in driving growth and bolstering sustainable urban development. Homebuyers, investors, and real estate companies in Lucknow are ready to leverage this opportunity.