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Major Trends Expected for Lucknow Real Estate in 2017

Author: Rajeev Kapoor
by Rajeev Kapoor
Posted: Sep 25, 2017

Real estate trends tend to shape the realty sector in India. Considering the recent policy changes introduced by the central government such as Real Estate Regulation & Development Act (RERA), Real Estate Investment Trust (REITs), Goods & Services Tax (GST) and demonetization, it appears that 2017 will be full of opportunities and optimism for the real estate market. After the successful implementation of Benami Transactions (Prohibition) Amendment Act and RERA Act, India has become the preferred nation for property investment. Beside this, market analysts and trade pundits have made other anticipations that look promising for realty market, especially in tier-II cities such as Lucknow, Kanpur, Noida, Ghaziabad, etc.

Foreign Direct Investment (FDI) in Indian Real Estate

India is at the fourth position in Asia for global capital inflow, according to the latest World Investment Report. With endorsements at the highest level, real estate sector pulled in $33 billion in 2017, whereas the amount for the year 2016 was $5.6 billion. The credit goes to modernizing and strengthening economy and India’s growing repute as an attractive destination for investment. Furthermore, improvements in the rules and regulations actually make India a more preferred destination for global investors, who are keen to invest money in real estate market, particularly in tier-II cities, which would augur well for Lucknow real estate also.

Realtors Revamping Business Models

The implementation of RERA will force real estate developers in Lucknow to revamp their business approach and practices. They will have to bring more accountability and transparency in their business model to win the faith of buyers. Apart from RERA, Benami Transactions (Prohibition) Amendment Act and GST would also influence the working of real estate companies in Lucknow. Demonetization and RERA have already compelled property developers to change their ways of operating business. Developers now know that they do not have other alternative than overhauling their old business practices, which could have a positive impact on new or upcoming housing projects in Lucknow.

Increased Industry Consolidation

Slowing sales and absence of financial discretion among various builders would force them for unification. Merger of different builders through joint ventures and joint developments would make the crowded real estate market in Lucknow meaner and leaner. There would be increased consolidations between big and small builders, organized and new builders, strong and struggling developers and new developers and landowners.

Influence of Affordable Housing

Affordable housing segment will now get the attention of real estate builders in Lucknow after receiving the status of infrastructure in 2017 Union Budget. According to government plans, one crore affordable homes will be built in villages and towns by 2019. In order to support this segment, refinancing of home loans by National Housing Banks and external commercial borrowings would help the growth of this sector. Moreover, the qualifying criterion for affordable housing has been changed from existing 30 sq.m. to 60 sq.m. on carpet area from saleable area, thus giving buyers more area at same amount. All this would facilitate the growth of affordable housing and new real estate projects in Lucknow as well.

About the Author: Rajeev is sales and marketing consultant at Azea Botanica, a new residential property in Lucknow being constructed by Azeagaia Development Pvt. Ltd., the top real estate development company in Lucknow, promoted by Singapore-based firms through foreign direct investment. Azea Botanica offers 3 & 4 BHK luxury houses in Lucknow at a prime location of Vrindavan Yojna. Rajeev has a hobby of writing articles, blogs and likes driving sports bikes and cars

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About the Author

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

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Author: Rajeev Kapoor

Rajeev Kapoor

Member since: Nov 15, 2016
Published articles: 24

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