Generating Wealth With Residential Property In Lucknow

Investing money in residential property needs the chosen location or area to meet certain criteria. Essentially, the location must have basic amenities, social infrastructure, public transport and sufficient economic activities in order to sustain growth and development. These parameters apply to investment in land approved for housing development and apartments in a residential project.

To alleviate the majority of investment risk, you should restrict your investment in a housing project to Tier-1 and select Tier-2 cities such as Lucknow, Bhopal, Bhubaneswar, Kanpur, etc. It is also wise to invest in residential properties where rates fall between Rs. 2500-4000 per sq.ft. since such a rate gives downside protection against capital value erosion. Moreover, the cost of construction and minimal cost of land actually makes this price bracket safe and nearly guarantees capital appreciation.

The City of Nawabs, Lucknow, which is rated by Credit Rating Information Services of India Limited (CRISIL) as one of the fastest growing tier-II cities in India is a good place to buy residential property and generating money from it. The Uttar Pradesh Govt.’s latest development and infrastructure projects such as IT City, Lucknow Metro, Lucknow-Agra Expressway, International Cricket Stadium and Cancer Research Institute, coupled with Lucknow Development Authority’s (LDA) focus on developing the outskirts and constant migration of people from neighboring cities to Lucknow have all facilitated the growth of real estate in Lucknow. However, there are some guidelines that should be kept in mind for you to generate wealth from your residential property in Lucknow.

Guidelines to be Followed:

1. The leasehold titles issued by government and property cycle must be understood to avoid any confusion or discrepancy.

2. The investor should have a clear understanding of capital gain or unearned increase and consequently elevated stamp duty indication at the time of conveyance from real estate builder.

3. The overall quality of residential project is essential because depressed markets usually result in poor construction and design quality.

4. All the statutory approvals, development plans and licenses must be checked and verified by the investor before making his decision to buy property in Lucknow City. Moreover, the real estate company’s agreement for all the funds for completion of housing project should be corroborated.

4. The project’s location is very important. A residential project located close to the main commercial area, airport, railway station or hospital would give high return on investment in the future, when compared to a project situated in a distant locality or outskirts of the city.

5. The track record and credibility of the real estate builder in Lucknow should be researched because even the top developers fail to deliver within the stipulated time-frame.

6. The investor must understand the basics of launch, soft launch and current price of property (the resale of ready projects might be actually cheaper) before looking for flats for sale in Lucknow.

7. The investor should understand sale agreement and transfer charges if he wants to sell his apartment prior to registration or during construction.

Finally, keeping a close watch on the market and selling your property in Lucknow at the right time will go a long way in multiplying your wealth. If the above guidelines are followed properly, your property at Lucknow would appreciate at a uniform rate of 15 percent annually for three years.

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 luxurious 3 & 4 BHK apartments in Lucknow for sale at a prime 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.