Lucknow Metro to Strengthen Lucknow Real Estate Market

Lucknow, which is also known as the "City of Nawabs," is the capital of Uttar Pradesh state, the most populous state in India. The Nawabi-era city is the hub of arts, music, dance and poetry is now evolving into one of the rapidly growing non-metro cities. While Old Lucknow is dotted with historical monuments and unplanned developments, the trans-Gomti area, which is also called New Lucknow, is developing at a brisk pace with planned roads, flyovers, bridges, shopping malls, multiplexes, hospitals, government and multinational companies.

At present, Lucknow is witnessing an economic boom, which is facilitated by latest development and infrastructure projects launched by Uttar Pradesh Government such as Lucknow-Agra Expressway, IT City, International Cricket Stadium, Medanta Super-Specialty Hospital and Lucknow Metro. The Lucknow real estate market would benefit a lot from these infrastructural projects, especially from Lucknow Metro that will run on three proposed corridors in the city.

Lucknow, which has population of over 3.5 million, is witnessing extensive horizontal growth with rapid development of new or upcoming areas. In a situation like this, a rapid rail transit system is essential for a growing and developing city to decongest increasing road traffic and facilitate faster commuting. The Uttar Pradesh Govt. has already given the green signal for Lucknow Metro project that is expected to cost around Rs. 15,000 crore. The first phase, North-South corridor, will cover 24 kms connecting Lucknow Amausi Airport to Munshi Pulia. This corridor is expected to be completed by 2016-17.

Market analysts and real estate developers in Lucknow are hopeful that once Lucknow Metro is operational, Lucknow real estate will become hot property, similar to what Delhi Metro actually did to real estate in National Capital Region (NCR). According to trade pundits, real estate prices soared 150 percent in Delhi over the last four years mostly due to Delhi Metro; the real estate market in Lucknow is also expected to witness a similar realty boom. Moreover, the state government is also planning steps to give a boost to land value in close vicinity of metro rail route by providing flexible land use, higher floor area ratio, etc. While the areas on outer limits of metro route can experience maximum price appreciation, far-off ones could see appreciation in rates to the tune of 100 percent.

By now, Lucknow property rates have demonstrated an upsurge with circle rates being increased by 25 percent by the district administration. A senior official in UP Housing Department has said that if the metro rail project facilitates appreciation in property and land value, the circle rates will be reassessed accordingly. In all probability, the prices of land and properties in Lucknow area would go up with metro rail project.

With horizontal growth picking pace in major tier II cities across the country, Lucknow City has been no exception. Already, real estate in Lucknow is experiencing incremental growth with respect to demand for flats for sale in Lucknow. Upcoming areas like Gomti Nagar, Gomti Nagar Extension, Vrindavan Yojna, Jankipuram and Vikas Nagar are already seeing robust real estate activities with reputed property developers launching new real estate projects in Lucknow.

About the Author: Rajeev is sales and marketing consultant at Azea Botanica, an upcoming real estate project in Lucknow being developed by Azeagaia Development Pvt. Ltd., promoted by Singapore-based firms through foreign direct investment. Azea Botanica offers 3 & 4 BHK apartments in Lucknow for sale at a strategic location of Vrindavan Yojna, Raebareli Road. Rajeev has a hobby of writing articles, blogs and likes driving sports bikes and cars.

Rajeev is an avid writer and regularly writes articles and blogs on Lucknow real estate.