Challenges of Lucknow Real Estate in 2018

The year 2017 has seen many structural reforms and laws being introduced by the central government for the betterment of India’s economy. Demonetization drive, Goods and Services Tax (GST), Jan Dhan Yojna, Pradhan Mantri Ujjwala Yojna (PMUY), Real Estate Regulation Act (RERA), Affordable Housing and Real Estate Investment Trust (REIT) are some of the reforms that have been implemented to strengthen the economy of the country and bring transparency and accountability in real estate industry.

Though, there are several optimistic aspects, which are expected to emerge from these reforms and present a positive scenario of Lucknow real estate in the year 2018, there are some challenges that need to overcome by property developers and customers in the City of Nawabs. Some of these challenges are:

Higher Price

In a big country such as India with burgeoning population, a large number of families are living in rented apartments and houses because property prices are higher and home loan interest rates keep rising. However, the recent government efforts are promising as housing loan interest rates have been reduced, affordable housing schemes have been launched and more such reforms are expected to take place in the future. All this would facilitate the growth of new real estate projects in Lucknow and people will be inclined to invest their money in residential properties in Lucknow.

Connectivity

Naturally, people prefer a house that has proper connectivity and is located in close proximity to school, hospital, shopping centre, offices and public transport utilities. However, due to scarcity of land and congestion in main city areas, most of the residential projects are being constructed on the outskirts or highways where connectivity and public conveniences are yet to develop. With recent infrastructure and development projects initiated by Uttar Pradesh Govt. in Lucknow, the outer areas would develop soon with better roads, electricity, drainage system, transport facilities and public conveniences. This would entice property developers to launch new housing projects in Lucknow, especially in new localities.

Delayed Residential Projects

It has been observed that many projects in the past could not be completed on time. Delay in land acquisition, litigation issues and lack of funds are some of the common reasons behind projects getting delayed. This situation actually makes the buyer circumspect while investing money in realty market and makes him loose faith in property developers and their projects. With introduction of RERA, builders now need to update all the pertinent information and details about the completion of their residential projects on the website. Furthermore, RERA rules specify that if projects are not completed within the stipulated timeframe, then developers need to pay interest to customers as penalty. This will bring much needed accountability and clarity between the real estate companies and customers, which in turn, would restore buyer confidence and help the growth of flats for sale in Lucknow.

If real estate firms can manage to get the better of these challenges and improve the standard of their work, they can look forward to a wonderful time in terms of property sales. Post reforms, market analysts are also expecting a bright future for upcoming residential projects in Lucknow.

About the Author: Rajeev is sales and marketing consultant at Azea Botanica, a new residential property in Lucknow being developed by Azeagaia Development Pvt. Ltd., promoted by Singapore-based companies 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.