If you are looking to buy a home in Lucknow this new
year, you must read this piece before you make a final decision. Why? We have
looked at various localities of Lucknow and are then making an informed
suggestion to benefit you both in short as well as long term. You need this
advice because a home buy will probably be the biggest purchase you will make
in your life.
Lucknow is one of the fastest growing cities in India
and has increasingly emerged as the preferred choice for buying a home for
anyone in eastern and central parts of Uttar Pradesh. A well laid out basic
infrastructure, already functional metro rail, an international airport and
excellent network of roads provide the basic wherewithal for a tension free
life here. Added to this is a well – educated and one of the most civilized
population groups in India. This is also the seat of political, judicial and
executive power of the largest Indian state of Uttar Pradesh. With a stable
government at the hub, the opportunities galore in this futuristic town.
When one looks at Lucknow, the city has grown in all
the directions in last few years. There are developments in Gomti Nagar
extension, Raebareilly road, Sultanpur road, Hardoi road and Kanpur road.
However, if you ask anyone in Lucknow his preference for buying a new home, the
answer in all likelihood will be Gomti Nagar extension or Shaheed path (which
is the official name), unless there are budget constraints, one is facing. The
rental values for flats in this area are easily 1.5 times a similar apartment
in the second best residential area. Despite a relatively new development, the
locality is being considered even by old Lucknowites to move in and stay.
The question is then, why this rush to buy homes in
this area. To get the answer, we should look at multiple factors. Gomti Nagar
extension has an excellent connectivity to the airport and the railway station
through Shaheed path. The second thing one looks at is the amenities in the
area. Whether you look for entertainment facilities or shopping area, there is
no close rival to this location. The largest and the newest mall, the phoenix
city mall is located here, which has got a gaming area and a multiplex. There
are multiple facilities for sports with an international cricket stadium, Ekana
cricket stadium located here. The area is also blessed with many schools
affiliated to different boards, where students from all over Lucknow prefer to
study. The medical facilities in the vicinity are the best in the town.
Another reason why this locality emerges as the most
preferred destination for home buyers, is the most modern apartment complexes
on offer by the best builders in the town. Whether it is large north India
based developers like Ansal or Omaxe or one of the best developer of UP, Paarth Infrabuild, the properties on
offer here have the most modern amenities.
Paarth Infrabuild
offers the best located projects Aadyant and Arka in this cluster. These
projects are situated adjacent to Phoenix city mall and the cricket stadium and
have the best amenities on offer.
Imagine living in a neighbourhood where everything you need is a stone’s
throw away. Sounds too good to be true? Well, integrated townships
have made this dream a reality and therefore, have fulfilled a lifestyle need
of new age home buyers.
Self-sufficient integrated townships are fast becoming the order of the day, and
are popular among developers and
residents alike.
It is an ultra-modern and cosmopolitan real estate model,
featuring the combination of residential and
commercial complexes with
associated infrastructure such as schools, colleges,
shopping centres and
various other facilities. Traditional urban living is plagued by a range of issues such
as overcrowding and shortage of space. Integrated
townships help combat these problems by creating miniature
urban ecosystems that offer an abundance of space, security and accessibility.
From cost-effectiveness to convenience – the range of benefits offered by
integrated townships are endless.
Easy
Access to Essentials
The COVID-19 pandemic served to demonstrate the need for easy accessibility to
essentials, as the movement was heavily restricted. Living in an integrated
township ensures that you never have to worry about getting to a supermarket or
hospital again. All the benefits of city life are offered within the project,
with all essential services being
available at close vicinity. By choosing an integrated township,
you can wave goodbye to all the hassles of commuting!
Perfect
Environment for Children Urban
environments are
causing children to become increasingly cooped up in cramped apartments,
resulting in excessive use of technology and lack of exposure to open, green
spaces. Integrated
townships effectively combat this issue through the creation of numerous
public spaces for children such as parks and
playgrounds. Moreover, the presence of creches and day-carecentres make
it a convenient place to raise children, with heightened security also
ensuring peace of mind for parents. Townships enable children to grow up in safe, clean and green spaces, with no
dearth of opportunities to run around and enjoy their childhood.
Great
Value for Money
While a township property may seem like a large investment, a
closer look reveals that it is more cost-effective than buying an independent property. As townships are
often located in the outskirts of cities, they offer a wide range of amenities
at reasonable prices, while ensuring great connectivity to the
main city. Moreover,
townships offer a better return on
investment and
great potential rental incomes. Additionally,
integrated townships
offer the added advantage of lower maintenance costs, as service taxes and
maintenance charges are distributed over a large population.
Enhanced
Lifestyle
Apart from essentials such as schools and supermarkets, integrated townships
also feature a range of facilities and benefits to enable an optimal lifestyle.
These projects offer an escape from the claustrophobic city, with an abundance
of ventilation,
greenery and open spaces. Moreover, the reduced need for long commutes also allows you to spend more time
doing the things you love. Provisions for jogging, yoga,
meditation and
other enjoyable activities make living in integrated townships an extremely
wholesome and satisfying experience.
There are, however, very few integrated township projects in
Lucknow. Paarth
Republic is one such project, which is in advanced stage of development and
offers various residential
options to meet requirements of different budgets.
Lucknow has been growing fast over last
decade and has been a leading non-metro town when it comes to new developments.
While infrastructural developments are happening across the city, the progress
in Lucknow-Kanpur road area is quite rapid. And it is quite appropriate
considering that this road connects the two most important cities of UP and it
has the fastest growing airport east of Delhi airport. The metro connectivity to
other parts of city from here ensures a quick and efficient transport system.
Till a few years back, Kanpur road area was
not considered to be appropriate for luxury residences. The city was
gravitating towards Gomti Nagar and further towards Raebareli road. Amausi
airport had not received any expansion for years and connectivity from this
area to rest of the places in the city could at best be described as patchy.
The ongoing metro work was a nuisance and it was not easy to visualize the
advantages of this network in future. But as Lucknow started growing and
airfares in India started coming down, people took to air travel in droves. The
airport was expanded and international flights were started. Just to understand
it, let’s look at some of the statistics. The footfall at Amausi airport
increased from 23 lacs in 2013-14 to 47 lacs in 2017-18. Also, as the metro
started operations, people realized the efficient mode of transport it provided
and suddenly this whole area near the airport was in focus. There is an ongoing
project of an elevated road connecting Shaheed path to airport.
As the metro network keeps getting
expanded, new infrastructure developments started taking place in the area. A
new integrated terminal building at the airport was started with an outlay of
roughly 1400 cr. And is progressing fast. The Lucknow- Kanpur highway was also
upgraded and is now a congestion free road, further paving way for making
driving smooth here. Another big infrastructure project that has been announced
in this area in Sep’2020 is the setting up of India’s largest start-up
incubator center opposite Amausi airport. This is planned to be a 2.5 lac sq ft
facility which will be set up by Uttar Pradesh electronics corporation and
probably be built and operated by Software Technology parks of India (STPI), a
central government agency.
As expected, this area is witnessing a rush
of private projects also as government projects are reaching their completion.
There are new industries being set up and a number of residential projects are
being launched. As Amausi airport expands and new integrated terminal starts
operation, this area will also become a large transit center for travelers from
across Uttar Pradesh. Considering that, a host of new hospitality projects are
being developed in the area, which will improve the traction even further.
Though most of the residential
projects in the area are very small in their scope and are not well
planned, the Paarth
republic township is sure to meet the expectations of new age investors and
renters. As a result, the prices are moving up in this community as rental
yields are also expected to move north.
Owing to
the contributions to the GDP, the Real Estate sector has assumed an important
place in the economy. That coupled with the need for state-of-the-art
residential and commercial projects, the sector further offers excellent
opportunities for investors both from India as well as from outside India. The
sector is also receiving excellent government support in terms of policies and
regulations. The introduction of REIT as a vehicle that helps the sector raise
funds and create more value for the stakeholders, has been cheered widely by
investors. Beside, the realty in India now is 100% open for the Foreign Direct
Investments.
Foreign investments in Indian Real Estate
The
foreign investments in property sector in India have increased
consistently since 2005, when the sector was opened. A bulk of these
investments have come in post 2015, as the sector started offering good
opportunities by bringing in more transparency. Of the total investments in Indian Real
Estate through foreign investments of US$ 25 billion, US$ 16.6
billion has come post 2015. This shows the increasing trust of foreign
investors in Indian real estate sector. This has also helped the sector weather
the headwinds it faced during this period due to various structural challenges.
According to the data released by Department for Promotion of
Industry and Internal Trade Policy (DPIIT), construction is the fourth largest
sector in terms of FDI inflow. Real estate sector in India is expected to reach
a market size of US$ 1 trillion by 2030 from US$ 120 billion in 2017 and will
contribute 13% to the country’s GDP by 2025. Retail,
hospitality, and commercial real estate are also growing significantly,
providing the much-needed infrastructure for India’s growing needs. Indian real
estate is expected to increase increased by 19.5% CAGR from 2017 to 2028.
While this
gives an overall optimistic picture of the foreign investments in property
sector in India, what can a home buyer take out from this information? Let’s
look at what happens with the onset of foreign investment in any sector. First
of all, the foreign investment flows in any sector, only when it is expected to
grow fast in following years, allowing the PE funds and other investors to rake
in large profits. Which can be inferred to be offering excellent returns in
times to come. Another underlying fact is that these investments will help
complete a number of stalled projects and release huge values that is currently
lying locked therein. This can provide the proverbial push for growth to the
sector.
Growth
clearly is on the horizon when we see FDI rushing in a sector. However, one
largely ignored but important fact from a retail buyer’s perspective is the
transparency such investments bring in
the invested sector. That coupled with the fact that RERA is establishing
itself well, will give the required peace of mind to investor and will draw in
even more new investors looking for consistent margins. Lucknow
is one of the property
markets, which is on the radar of foreign investors and buyers in
this market can hope to reap all the benefits associated with foreign
investments.
While looking to buy a new property it helps to check as to
how have the prices moved in a particular market. It is important to check this
both for the larger city/ geography as well as for the micro-market where one
is looking to buy a house.There are several institutions which release data on
price trends for major cities in India, however, the one released by National
housing bank as NHB Residex is used most often. There are price trend charts
also available for different localities within a city as shared by various
property portals like 99 acres and magic bricks.
Lucknow is one such market that has continuously shown an
upward moving graph for residential properties in all major localities of the
town. A generally upward moving graph suggests that the city/ area is being
favoured for buying property, while a downward graph is for a city/locality
which is not being liked in general. Considering this, study of price trends
could be a great starting point while zooming in to decide where to buy a property
and price trend charts for Lucknow suggest a highly positive propensity to buy
a residential property here.
Lucknow is one of the few cities in India, where the Housing
Price Index has shown a strong positive movement both for constructed as well
as under construction properties. Since June 2019, the quarter on quarter
increase in properties has been remarkably positive and has touched almost a
10% year-on-year increase in certain localities. The neighbourhoods which have
seen the highest annual appreciation in property prices are Gomti nagar, Gomti
nagar extension, Kanpur road and Raebareilly road. This is very encouraging
considering that prices in most of the cities across India have fallen in last
2 years.
This price trend becomes even more interesting when we look
at it from the perspective that there is an increasing demand for bigger unit
sizes post Corona induced pandemic. It is also important to note that Lucknow
market offers excellent opportunities to buy in certain localities which are in
and around Gomti nagar and Kanpur road area. Considering few good properties on
offer in these areas and a favourable disposition to own these, it presents an
excellent opportunity to invest here.
The onset of pandemic has also ensured that economies
world-wide increased money supplies to reduce the impact of lockdowns on their
economies and their citizens. This has resulted in increased flow of money in
developing markets like India, which is sure to find its way into property
market. This when coupled with the fact that the housing loan interest rates
are at historically low levels, makes this opportunity even more inviting. A
recent report from HDFC, the largest mortgage lender of India, also shows that
with increasing salaries, the affordability of properties have increased
substantially.
All these factors make year 2021 as the year of turnaround
for property markets across major cities in India. Lucknow, which has not faced
the heat faced by other property markets in last few years, is expected to lead
the wealth multiplication in property investments. With a massive vaccination
program underway and people looking to come out after a hiatus, the hope for
economy doing better is on the horizon. If one scans the news, the new deals in
properties are showing a firm and definite trend towards positivity. There are
more people looking for property now compared to previous years, while the new
supplies have not been created in last few years. All these facts will lead
towards an impending property boom in near future.
Indian property market is at a point of inflexion right now.
While we discussed about some of these factors in previous paragraphs, there is
a larger play expected because of the various economic reforms initiated by
government in last few years. There was a clampdown on cash transactions, which
had hit the property sector adversely in short run. However, this is forcing
more transparent buying and selling of property. Such measures always help
improve the customer confidence and it will result in more customers getting
encouraged to invest in property. Also UP RERA has been one of the most
proactive regulator body. This is another measure which has helped improved
customer sentiment. While this had a negative impact initially, as builders and
customers were trying to understand its implications, RERA is expected to give
new impetus to property market.
The structural demand for housing in India will continue to
flourish in many years to come. A population which is still very young with
majority of them just entering the employment creates ample requirement for
housing. Various government incentives like Income tax waiver on one side and
interest subsidy for small dwellings on the other are enticing buyers. While
historically 37-38 years was the age when people typically bought property,
with various incentives and increasing incomes is expected to push people in
early 30s towards buying their own home.
There is absolutely no doubt that the money supply is
increasing and we will see many large deals by private equity players in India.
Lucknow as a market has emerged as a popular choice for multiple real estate
players to offer residential properties. There has been consistent improvement in infrastructural
facilities in the city. All these factors are sure to support the structural
expansion of residential property market of Lucknow. While property market is
looking at a bright future, the expectation of a high growth regime is looking
a certainty on the Indian horizon. IMF has predicted a 11.5% GDP growth for
India for 2021-22. This will result in a never before seen expansion of
employment opportunities and swelling incomes.
Paarth infrabuild has always ensured keeping its customers
at the center and helped buyers derive value from their property purchases.
With its residential developments in the fast appreciating corridors of Gomti
nagar extension (Shaheed path) and Kanpur road, it is well positioned to
deliver tremendous value for years to come. The price trends of these
properties and micro-markets are encouraging prospective customers, which is
driving a surge in enquiries.
We
are on a long road to recovery from the initial disruption created by the
pandemic. It, however, is sure that not everything will go back to how it was
pre-Covid. Somethings would have, perhaps, changed their character forever.
Future of work and home spaces
The
lockdown brought a huge change to the workplace. Work from home (WFH) became
the norm rather than exception. As per estimates from industry experts more
than 90% of 4.3 million IT workforce worked from home during lockdown. And it
seemed to have worked well, contrary to the early skepticism. The best part is
that both the employee and the employer seem to be happier with this
arrangement. While increased productivity warmed the hearts of employers,
employees enjoyed flexible working hours and savings in commute time.
Learning
from IT industry’s early moves, other industries also started to figure
out ways of getting a portion of workforce WFH without disrupting the work
ethics. Employers also saw it as an opportunity to reduce infrastructure and
administrative costs. Conferences and meetings went online, helping save
critical and expensive commute and helping organisations take swift decisions.
Also, employees could be close to families during these uncertain times,
especially when kids were home due to school closure. And there has been a vast
acceptance of these methods. Even the courts in the country, started using
video conferencing as a viable medium to do hearing.
WFH
also helped companies to tap into a pool of talent, which was not available
earlier. There were instances when employees were not willing to move places,
resulting in shortage of talent of a particular type. But with WFH becoming a
norm, this has no more remained a challenge. Also, people who left their homes,
leaving ageing parents behind, for a better life, could now shift back and be
next to their parents without affecting the work. This means very special for
women, who had to sacrifice their careers for commitments at home, suddenly
finding new opportunities.
Another
defining aspect of the pandemic induced work innovations has been a realization
by employers in industries other than IT, that remote work for a large
proportion of people in every industry is possible. As organizations tried it
under compulsion and found it working, it is expected to become a regular
feature going forward. This should result in continuation of these measures as
it works well for both the employees and employers. There was an announcement
by Deutsche bank with a plan to have almost 40% of its workforce working
from home permanently.
However,
there has been a flip side to WFH also. It is yet to be ascertained as to the
impact it will have on employee morale and loyalty over a longer period of
time. The lack of physical contact will affect the ability to group work,
ideate and solve complex challenges. This feeling of isolation could also
affect the mental well-being and may play havoc with self-confidence of
sensitive employees. As non-verbal part of the communication is not possible,
the exchange in certain situation could turn unhealthy. We can already hear
employees complaining about unstructured and long hours of work affecting their
life in multiple ways.
The
problem, in fact, extends beyond the mental well-being. The bedrooms and living
rooms are being converted to make-shift offices, which is an interference of
work life into personal space. Most of the houses in India are cramped and don’t have
appropriate office furniture, which may lead to health issues. As personal life
is intruded into, a lot of employees and their families may find this
experience awful. The ambient noise, at times, create embarrassing situations
for individuals and trying to hide from it could result in employees not being
at their normal self. Also, a large set of people have an extremely casual
approach to work, when in a relaxed setting, which may be off-putting for
colleagues in the work group.
What
then is the future of WFH in India? Basis the cost reduction it offers to
employers, there will be an increased traction to continue and enhance Work
from home. A large proportion of employees on other hand are already feeling
weariness of this change and may like to resume the normal office functioning
at the earliest possible opportunity. Multitude of work in offices, including
the IT corporations, require more than one teams and employees to work together
on a problem. Their synchronization has been critical for organizational
success. Keeping this and other factors in mind, most of the organizations may
be forced to resume operations like pre-covid times, once the scare is over.
However, a good solution can be blended office – working from home on specific
days and working at office on other days. This could be a winning solution if
proper planning with thorough understanding of each role.
This
new way of thinking will also result in paradigm shift in other industries. Real
Estate industry is the one that is expected to feel this change the most.
The market for office sales and rentals may face upheaval in short term. On the
other hand, residential developments in emerging and new locations may see an
uptick in demand. Challenges of working and managing office work from cramped
spaces will force people out of their homes in busy localities to look for new
and larger homes increasing the transactions. The noisy buildings located next
to a street as standalone building, will lose charm and large complexes away
from main road offering less noisy surroundings will gain prominence. It will
not be a surprise to see larger homes or apartments with an extra room
getting into favor, when compared with smaller homes. The locations with good
IT infrastructure will also find more buyers. Also, with travel and other
expenses down, the ability of an employee to pay the EMI amount would increase
substantially, giving him the confidence to invest in a bigger apartment.
As
the impact of WFH becomes clearer, we will know the way it impacts various
industries. One thing, however, is sure, that the housing real estate
industry is sure to see its best days. The focus will also shift from purely affordable
housing to apartment complexes located away from hustle bustle of
busy market areas. The large township projects will be in vogue and
certainly score over small city centric developments.
City of Lucknow, inhabited on the two sides of river Gomti, is a beautiful city that transitions from old to new in a matter of a few kilometers. The core of this city is its historical monuments, which are juxtaposed with glass and steel facade of state-of-the-art constructions. The old bazars are still attracting crowds for their variety, while fashionable malls are equally liked by new age city dwellers. The tranquil locales, modern infrastructure and a relaxed lifestyle has been attracting people from all over to make this city as their home for years and with time, its charm has only increased.
5 reasons why one should buy property in Lucknow
Today,
Lucknow has emerged as one of the country’s most important cities. Lucknow is
now emerging in various sectors such as retailing, manufacturing and IT after
securing its position in the smart cities of India, thanks to a proactive
government. As
a natural corollary, the city is attracting many developers and homebuyers with
the growth of new infrastructure. Here is a list of top 5 reasons, why one
should look at investing in a good property in Lucknow.
Lucknow
Metro – Every city in India has faced chaotic traffic as it
grew. Lucknow, however, escaped this due to visionary planning of
infrastructure agencies. The metro rail work was started ahead of time and
resulted in being ready when the city would have faced challenges of traffic.
It makes moving around in the city very comfortable.
Connectivity
with the world – Lucknow boasts of a modern international
airport and a railway station connected to almost every city in India through
an efficient network. Unlike most other cities, both these places have
excellent connectivity with rest of the city. The Shaheed path connecting to
airport from the developed areas of the city is a testimony to the foresight of
city planners.
Recreational
facilities – Lucknow has many places to spend a day either in
complete relaxation or by engaging in an activity one likes. Two cricket
stadiums in the city, with the latest one, Atal Behari Vajpayee stadium even
hosting international cricket matches, have brought the most played game in
India to its residents in a spectacular fashion. The museums, cinema halls and
a host of other such facilities ensure that one never feels lack of recreation
options in this city.
Medical
and educational infrastructure – This city rubs shoulders
with the top metros of India, when it comes to educational and medical
infrastructure. With top schools and colleges, an IIM, a AIIMS equivalent
hospital with multiple top notch private hospitals, Lucknow offers a peace of
mind like no other similar city in India. The city provides the best
environment for a child to engage in various activities, while studying for a
multi-faceted development.
Modern
retail – Lucknowites have adopted to modern retail like fish
to water. Latest malls like Phoenix and Fun republic have attracted and
introduced people to the best national and international brands. The ubiquitous
fashionable city dweller, mixing with the people in traditional attire make
this city as lovely as one could get.
There
are a few locations which have harnessed these advantages to the maximum. A
couple of residential complexes, Arka and Aadyant by Paarth Infrabuild in Gomti
Nagar Extension, located right next to Phoenix mall and Atal Behari Vajpayee
stadium, bang on Shaheed path are the kind of location, one can only imagine
for that coveted home.
Lucknow is capital city of Uttar Pradesh, the most populous state of India. Lucknow is always known as the cultural hub of north India and is also fast emerging as the biggest commercial hub of North India outside of Delhi NCR region. The infrastructural facilities in the city rival the best in the country in all aspects. It is the safest town in Uttar Pradesh with state-of-the-art policing protecting its residents. The medical facilities available in the City both in public as well as in private sector promise to protect people of the city from any eventuality. Lucknow city weaves a magic encapsulating traditional ambience with Rapid and ambitious futuristic growth. This unique blend of culture with social infrastructure defines the charm of the city and entices large swathes of population to make it their home every year.
Lucknow housing market – Opportunity for investors and end-users
While Lucknow has always been known for its culture, it has witnessed some of the best developments in last one decade. The ubiquitous metro rail covering the serpentine lanes below has a place of pride and convenience. The expanded airport connecting its citizenry to destinations across the world has opened the gateway to commercial centers of the world, while the newly constructed expressway connects this airpot to the pockets of commercial excellence within the city. The modern highway to Agra, connecting further to Delhi gives wings to the ambitions of ever-so-eager entrepreneurs from the city. The health infrastructure here stands shoulder to shoulder with any city in the world, what with Sanjay gandhi post graduate institute leading the medical facilities in this part of the world. The private investment has reposed its faith in these initiatives and contributed to creation of job opportunities in different sphere. The swanky complexes of IT companies stand a testimony to these efforts. While Lucknow has never been a manufacturing hub with that title belonging to its twin city Kanpur, the new age industries are finding an elevation to their pitch here. Lucknow of yore was dotted with flea markets, but the new buzzing Lucknow challenges the hegemony of traditional retail centers with the giant shopping complexes that balance the nawabi charm and the poetic humdrum with the hustle and bustle of modern busy life, ever so delicately. The Atal bihari Vajpayee international cricket stadium has added to the charm and utility, occasionally acting as a magnet to the city. Quality education is another pillar that has supported the residents of this boom-town in achieving their dreams. From foundation schools to a world class university bringing out the best in its students, the city embraces students from all nationalities and faith and gives them the values that highlight their achievements years later.
The thriving economy and an ambitious middle class population has resulted in this city growing. No wonder then, that it has reported to have one of the highest growth in disposable income in the country in a decade. Exposure to modern life style and a high disposable income has upped the propensity to invest for a better way of life. Residents of adjoining towns and cities and also from rest of Uttar Pradesh always invested in Lucknow city. The state being an agrarian rich region, has seen the incomes going up in small towns and cities, resulting in citizens looking for better life-style and therefore heading to Lucknow. A home in Lucknow is a matter of pride for anybody living in any part of of eastern Uttar Pradesh. It has become more so in recent times as both the business as per the job opportunities give fast in this city. Earlier Kanpur used to be the business hub with Lucknow the Cultural Centre, but now Lucknow holds both these titles.
Lucknow has also seen significant political stability for almost A decade now. It has helped the infrastructure projects to complete in time and the town to grow in a planned manner. Private developers of national and international repute have also launched various residential and commercial projects in the city with world class amenities and architecture. This has also enticed old residents of the city living in crowded and less developed localities to buy a home and live in modern housing societies. Therefore, while most of the urban centers in India have struggled to maintain the speed of sales of houses and the prices, Lucknow real estate market has seen a consistent growth, both in terms of price appreciation and number of units sold. Localities like Gomti Nagar and Kanpur Road have seen significant traction from buyers. A lot of these projects which were launched a few years back have been completed and residents have shifted in. This has further boosted the confidence of end-users to invest in new properties. This, in turn, has offered incremental returns on investments for investors and therefore they keep flocking to various projects.
Other factors which have influenced this trend are – availability of land within a reasonable distance from City Centre, relatively low cost of construction and availability of comparatively cheap labour. This has enabled the developers to offer excellent propositions to buyers within their budget. Buying a property in Delhi NCR have continued to be unaffordable for a middle class buyer and the same customer finds excellent choices at affordable price points of between 40 and 70 lacs here. Lucknow city has seen multiple large investments in the real estate housing sector and it is expected to continue to see the same going forward as people across the cities restart their life after the pause due to covid-19.
Lucknow housing market is expected to see hectic activity, as people are looking to stay near the places where educational and medical facilities offered meet the word standard. The availability of ever increasing employment opportunities makes Lucknow even more attractive. The administrative reforms initiated by the present government in last two years have started yielding results making the Civic infrastructure in Lucknow reach newly developing localities. Lucknow reality market is slowly turning into the proverbial gold pot for the investors and the best place to live in for the end user.
Countries like India are witnessing a very fast migration of population from rural areas to urban areas. It is also showing in the reducing weightage of agriculture in the GDP. This has been a phenomena observed worldwide – today’s developed world had seen it in the middle of last century coinciding with the industrial revolution. There are lessons to be learnt from those examples and plan for it in advance. Communities across country will be compelled to adopt technologies and processes keeping this reality in perspective.
Urbanisation – Opportunity for smart growth
With more and more of population living in cities, urbanization is bringing in significant changes to social and economic structure of these. It’s also exerting significant pressure on infrastructure and resources and potentially opening the door to urban catastrophe if prior planning is not done. At the same moment, it gives local governments an opportunity to plan and correct the infrastructural and social disparities of past. If cities don’t work for entrepreneurs, employers, and citizens in the same breath, then the related flows of trade, technology, infrastructure and employment will be squeezed. Creating a master plan of fast growing cities, taking into account also the rural areas that it is likely to swallow, is just the first step. If administrations can harness data-driven intelligence to identify appropriate opportunities and priorities and create a smart plan it will ensure an equitable and futuristic development. Another opportunity which this phenomena offers is to get the data of all the various departments to talk to each other through smart algorithms and use it to create a seamless urban perspective. It will help in deploying predictive services ensuring right services to the right population group, at the right time.
Latching on to this idea, a number of cities, ably pushed by central government, have started working to create smart cities, though with varying understanding. Some look at it as use of technology to optimize the urban infrastructure and traffic flow. Others look at it as a push towards initiating smart governance, where policy making is more driven by data and logic and oriented towards its citizens. Some technologically advanced administrators are planning to use Internet of Things (IoT) platforms to monitor city infrastructures, which means managing everything from traffic flows and parking to water and air quality through centrally controlled and data driven approach. Data generated thus, can be used to further enhance environmental sustainability and creation of renewable energy resources.
Most urban centers in India are struggling with a creaking infrastructure and legacy planning issues. Therefore, this opportunity to reorient and plan for fast urbanisation opens new roads to set it right. A data based smart planning will help orient cities around a couple of central themes and can deliver a citizen-centric development. The planning for employment opportunities, future patterns of flow of people and more equitable social development will set these cities on a growth path. If we miss this opportunity now, our cities will end up being chaotic masses which will be a social and economic disaster. The choice between a smart growth and an urban mess is to be made now.
The real estate market heading into the current crisis has sometimes been described as the real test of character of developers. The deepening economic impact of the coronavirus pandemic is felt worldwide. It is not only the immediate economic challenges which are worrying developers, but also the imminent social and behaviour changes in buyers. It will push us to learn to cope with and embrace a new professional paradigm.
What should developers do in a challenging market
Despite the chaos that’s taking hold in the broader market, real estate developers can apply brave but smart strategies to keep their projects going and assets producing. There have been instances of existing businesses cutting down on their manpower or reducing salaries across the board, which will leave lesser money in the hands of consumers, resulting in problems with existing customers who may be on an instalment plan. Also the prospective buyers will be squeezed for funds and there is real danger of reducing per unit price. Some of the investors who had been holding on to their investments in the hope of better returns, may come out to sell in desperation, forcing the prices further down.
What then, a real estate developer can do to survive and come out stronger on the other side of this crisis. There are opportunities which will need to be tapped with a suitable plan. In the space of customer inquiries, it will be prudent to increase spends on creating brand in digital world. With people spending more time indoors and working long hours on their computers, it is quite intelligent to create a connect with customers online. Also, customers try to interact with brands in various ways as online search and research is very intuitive. The developers who could create a simulacrum of the customer buying cycle and fill all the gaps that might exist in digital brand positioning, will walk away with bulk of online enquiries. It would be worth presenting to customers the options understanding the current state of customers.
Another opportunity that presents itself to the developers is in terms of canvassing for upgradation. There is a sizeable chunk of people, who have paid off the housing loans they had taken for their first homes. It is time to give them compelling reason to upgrade or buy another property. Historically low interest rates and availability of good options at considerably stable prices will drive in bargain hunting investors with surplus funds. Can a developer reorient its product proposition to suit their requirements.
The onset of long term social and behavioural changes should also be considered in redrawing the product design as much as possible. In days ahead, functionality of design will win over luxury. It will be smart to reorient designs keeping the new social habits people will form. A great outdoors within the precincts of project may become more attractive than a high end club house. Large open though covered spaces for small group conversations would be inviting for more people than a large banquet hall. Provision of health care facilities and good house keeping services will trump a restaurant or a coffee shop. A developer sensitising and orienting the design and construction team to these realities will be a winner compared to the ones who don’t do this.
Every challenge hides an opportunity in its lap. It needs effort to recognise the same and work to capitalise to come out on top once the challenging situation is over. Time will tell us how manages the crisis period proactively and wins and who gets crushed under the weight of inaction.
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