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Unbelievable Facts about Real Estate in Lucknow!

July 20, 2019 0 Real Estate Industry

Lucknow, the capital of Uttar Pradesh, is famous for its rich cultural heritage. At present, it is also one of fast emerging metropolis in the country. Lucknow is on the list of being declared as a smart city.  The city has witnessed a level of investment and influx of migrant population. Several industries and government organizations have opened offices in Lucknow. In a nutshell, Lucknow is experiencing economic boom. Together with the economic boom, the real estate market of Lucknow is also booming. It has become one of the preferred destinations for people residing in other cities of Uttar Pradesh as well. Investors are flocking in from different cities of Uttar Pradesh such as Allahabad, Bahraich, Barabanki, Kanpur, Sitapur, Sultanpur, Varanasi, and Unnao to Lucknow in search of their dream home.

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As per the data available in 2018, the National Housing Bank’s price index for under construction properties has recorded an overall increase in 39 cities with the maximum price growth of 9.4% recorded in Lucknow.

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It is abundantly clear from the above – the real estate market in Lucknow is booming. But ever wondered why did the sudden boom in real estate sector happen? We have set out a few key reasons responsible for the growth story of real estate in Lucknow.

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As indicated above, there are several reasons that have led to the massive boom in the real estate market in Lucknow.

Social Infrastructure: Lucknow is very well connected when it comes to the social infrastructure. The city has four highways: NH 24 connects Delhi, NH 25 connects Bhopal via Jhansi, NH 28 connects to Mokama (Bihar), NH 56 to Varanasi and four State highways viz. SH 25 connects Hardoi, SH 36 connects Rae Bareli, SH 56 connects Sultanpur and SH 40 connects Mohaan.  Amar Shaheed Path or an elevated road, starts from Gomti Nagar and ends at Kanpur Road and connects large parts of the city. Lucknow also enjoys great rail and air connectivity. The icing on the cake has been the development of Lucknow Metro. This has resulted in the development of a number of real estate projects.

The Real Estate Developers: Residents of Lucknow are attached to the city. They have bought plots of land for their forever homes. Research indicates that Lucknow has witnessed private developer presence more than 30 years ago with planned plotted developments by some local developers. In the last few years, several real estate developers have entered the market. These developers have helped in the establishment of multi storied projects and modern townships.  The developers have also purchased plots of land which are auctioned by the Lucknow Development Authority or the Uttar Pradesh Housing and Development Board. Majority of these lands are in and around Faizabad Road, Gomti Nagar Extension, Rae Bareli Road and Hardoi Road. Accordingly, a number of real estate projects have come up in these areas.

The Boom in Population:  Lucknow has also witnessed a phenomenal growth over the last few years. Policy initiatives of the government and the boom in the economy have resulted in job opportunities, growth of business and a better standard of living. This has also led to an increase in the population of the city. People from neighbouring cities are now migrating to Lucknow in search of a better quality of life. This has provided a boost to the realty in Lucknow as well.

Easier Sources of Finances:  Borrowing a home loan has become easier than before. Banks and NBFCs have slashed the home loan rates substantially. In fact, SBI offers the Lowest Home Loan Interest Rate Starting at 8.40%.  Access to cheap home loan rates also means that people have more liquidity to afford real estate. As a result, the real estate sector has received a fillip.

Rise of Medical Tourism in Lucknow: The city is a growing hub of medical tourism. It attracts a lot of patients from Nepal every year. The government of Uttar Pradesh is committed to make Lucknow one of the top medical destinations in the country. Several multi speciality hospitals have been set up in Lucknow with world class facilities. This has resulted in the influx of both patients and medical professionals looking for housing options in Lucknow. Therefore, rise of medical tourism has also led to the growth of real estate developers in Lucknow..

How a middle income person can buy a HOUSE – “Kyunki Apna Ghar toh Apna hota hai”

July 5, 2018 0 Residential Properties

Have you ever thought that if money was never an object you could have bought your dream house? That might be a cozy villa having a private garden as well as swimming pool or a private condo having sea view like it is shown in James Bond movies. Thinking? You might go out of your budget.

Everyone has an idea of their dream homes but as money as an object comes into the picture your aspirations are toned down. Most of the home-buyers when decide to convert their dream home into reality by stretching their finances they might end up denting their finances. But not anymore, affordable housing scheme helped many people to fulfill their dreams to buy their own house. The slowdown in real estate sector also lightens the burden of the buyer. A few years back rates of the property were hitting the roof but today home-buyer can a find a place to dwell for spending their life with their family.

The vision of Modi government that every citizen of India has their own house by the end of the year 2022. To back this vision the government is pursuing and encouraging the builders to come up with projects that fall under affordable housing schemes. Under this scheme, the target is to make house between 10lakh to 30lakh so that lower and middle class group can afford it. Even the home loans are available at a very economical rate. This will lead to increase the quality of living standard of people.

Projects under the affordable housing schemes are launched in states Punjab, Uttar Pradesh, Rajasthan etc. and the state government is providing all the possible assistance to the builders. As per Times of India, their government has made two classifications for Middle Income Group (MIG).

  1. MIG-I having an income of 6-12 lakh will get loan up to 9 lakh with interest subsidy of 4% for a tenure of 20 years. Therefore at the end of tenure, the borrower will end up paying an interest subsidy of 2.35 lakh for 9 lakh.
  2. MIG-II having an income of 12-18 lakh will get loan up to 12 lakh with interest subsidy of 3% for a tenure of 20 years. Therefore at the end of tenure, the borrower will end up paying an interest subsidy of 2.30 lakh for 12 lakh.

The Housing and Urban Development Corporation (HUDCO) and National Housing Bank (NHB) have been acknowledged as central nodal agencies to channelize this subsidy to the lending institutions, including banks and financial institutions. Therefore, small banks, non-banking finance companies and micro-finance institutions will be recognized as primary lending institutions under the scheme.

Additional loans are also available at a non-subsidies rate. Under the scheme, widows, single working women, persons belonging to SC/ST, OBC, differently abled and trans-genders will be given preference.

Paarth Infrabuild, Real Estate Developers, Lucknow, Uttar Pradesh, India