Residential Properties

Price Trends of Properties in Lucknow

February 1, 2021 0 Commercial Properties Real Estate Industry Residential Properties

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.

Lucknow housing market – Opportunity for investors and end-users

October 1, 2020 0 Real Estate Real Estate Industry residential

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.

Vertical expansion – Answer to urban land scarcity

September 25, 2020 0 Real Estate Real Estate Industry Uncategorized

India is witnessing an unprecedented growth in urbanization. Better health care facilities and educational and job opportunities are driving people from rural areas to urban centers and resulting in huge population growth. This brings the challenges of land planning and environmental control to town planners. Expanding cities horizontally to make room for all these people will end up destroying more natural resources and therefore vertical growth of cities is being considered as a viable option. Building upward instead of outward enables us to host large number of people in a small area, conserving land and natural resources. The remaining and available land, therefore, could be used to create civic infrastructure for the population living in the locality.

Vertical expansion – Answer to urban land scarcity

The advent of high-rise buildings have also coincided with provision of world class amenities in housing projects. A vertical growth also offers people living on higher floors a panoramic view of the city around and makes life beautiful. A high floor living also avoids noise pollution and other challenges which affect quality of life in low rise developments. Various amenities including car parking etc can be managed in the basement and lower floors to ensure a smooth passageway to walkers. With fast lifts fitted in these buildings there is no challenge in moving between floors. In fact, all the premium buildings in mega cities like Mumbai and Delhi NCR are vertical developments.

Vertical buildings could also offer other environmental benefits. Having numerous services and amenities in the same tower would reduce the need for moving around. This can also save fuel and energy.

These buildings also create social connectivity by making it easier for individuals to socialize in common areas and visit friends. More like minded people in one place also offers opportunities to create micro-communities based on interest in these housing societies, reducing the need to go out and socialize. As more families live in a small foot-print, it is easy to develop social and civic infrastructure in that area as the users are already there.

Earlier people were concerned about multiple inconveniences related to high-rise living. However, with advent of better technology in almost every aspect, these are no more the real challenges. The modern building design and construction technologies ensure that we can keep building higher without worrying about structural safety. In fact, these building designs are more resilient than the traditional low floor construction. Most Indian cities have now 24*7 power supply, resulting in no downtime for various equipments including elevators in these buildings. The building safety norms are in place and following these is mandatory, making these buildings safer. Also, a behavioural factor weighs in, as high rise developments are done only by large developers with help from reputed construction companies, they offer better construction quality than the houses built by part time developers.

Vertical expansion of cities, without a doubt is viable solution to urban land scarcity. For the people who live there, also taste the luxuries of life which are not easily available in low height developments. It is not uncommon to see a prestige associated with this living.