Lucknow, the capital of Uttar Pradesh, often referred to as the ‘City of Nawabs’, has long been known for its rich culture, glorious history, and imposing architecture. However, in recent years, the city has gained recognition in the flourishing real estate sector for reasons beyond the past.
According to Colliers’ recent report ‘Equitable Growth and Emerging Real Estate Hotspots, Lucknow is one of the 17 cities identified as emerging real estate hotspots in India. This recognition underscores the city’s potential for substantial growth in the upcoming years.
Badal Yagnik, CEO of Colliers India, said, “Smaller cities are evolving as dynamic contributors to India’s economy, driven by improved infrastructure, affordable real estate, skilled manpower, and government initiatives.”
India’s real estate market is experiencing a rapid surge, with Colliers estimating the market will reach USD 1 trillion by 2030 and USD 5 trillion by 2050. This remarkable pace of growth is encouraging investors to explore new opportunities beyond the erstwhile real estate hotspots of Mumbai, Bengaluru, and Delhi/NCR, where property prices are skyrocketing. Lucknow shines as a leading choice among these emerging cities for investors looking to invest in Lucknow real estate.
“This growth is set to propel the real estate sector to an estimated USD 1 trillion by 2030 and potentially USD 5 trillion, a 14-16 percent share in GDP by 2050”, Yagnik added further.
The Rise of Lucknow in the Real Estate Sector
Lucknow’s inclusion in Colliers’ list of emerging real estate hotspots is driven by economic growth, urbanization, and infrastructural development. Dozens of real estate companies are making substantial investments to develop residential societies in Lucknow.
Key Factors That Make Lucknow an Emerging Real Estate Hotspot in India
1. Economic Growth & Employment Opportunities:
With rapid growth in sectors such as IT, retail, and manufacturing, Lucknow is experiencing a surge in economic activities beyond its traditional industries of education and administration.
This growth pushes demand for commercial spaces and residential plots in Lucknow.
2. Strategic Location
The city is strategically positioned and well-connected via railway, road, and air with major cities like Delhi, Kanpur, Varanasi, and Agra.
The upcoming Gorakhpur Link Expressway and the existing Lucknow-Agra Expressway and Purvanchal Expressway enhance the city’s connectivity.
3. Infrastructural Developments
Infrastructural development, including improved road networks, better public transportation, and the Lucknow Metro, has revolutionized the city’s mobility.
The establishment of numerous SEZs (Special Economic Zones) and the development of the IT City have increased the demand for spaces for offices and residences.
4. Cultural & Lifestyle Appeal
Lucknow boasts a rich cultural heritage coupled with modern amenities, offering a rich lifestyle that attracts both locals and newcomers to the city.
The city has some premier educational institutions, healthcare facilities, and shopping malls, such as IIM Lucknow, IIIT Lucknow, Sanjay Gandhi Postgraduate Institute of Medical Sciences (SGPGIMS), King George’s Medical University (KGMU), La Martiniere College, and St. Francis’ College, making Lucknow a preferred destination for both families and professionals.
5. Government Initiatives
The government has chosen Lucknow to develop as a smart city, and various other development projects are creating a conducive environment for real estate investments.
Government policies aimed at affordable housing and infrastructural development are impressive. As a result, several real estate players are initiating residential projects in Lucknow.
The Other Emerging Real Estate Hotspots
Along with Lucknow, Colliers India has identified 16 additional Indian cities as emerging real estate hotspots. Here they are, categorized by zone:
Central India: Indore is the only city in central India that is an emerging real estate hotspot driven by its strategic location and growing industrial base.
1. North India
Ayodhya, Amritsar, Jaipur, Kanpur, and Varanasi have been identified as emerging hotspots because of their economic growth and enhanced infrastructure.
2. East India
Patna, the capital of Bihar and Puri, the capital of Odisha, have been identified as key growth hotspots. Patna is witnessing rapid urbanization, making the city a potential market for the real estate industry. Meanwhile, with its Jagannath Temple, Puri holds great religious significance in the region. Additionally, due to its coastal allure, Puri is poised to emerge as a key destination for both real estate investors and tourists.
3. South India
Tirupati, Kochi, Coimbatore, and Visakhapatnam are key cities emerging as real estate hotspots in the region due to strong local economies and infrastructural development.
4. West India
Nagpur, Dwarka, Surat, and Shirdi are the top-growing cities in West India, driven by rapid infrastructural expansion and industrial development.
Conclusion
Colliers has identified 17 Indian cities as emerging real estate hotspots. With the continued growth in India’s real estate sector, these burgeoning cities provide investors with great opportunities to flourish their business outside the already saturated areas of Mumbai, Delhi/NCR, and Bengaluru. By tapping into these markets, investors can not only reap good returns on their investments but also enhance their portfolios in the coming years.
Lucknow and other identified cities are geared up to play a crucial role in driving growth and bolstering sustainable urban development. Homebuyers, investors, and real estate companies in Lucknow are looking to leverage this opportunity.
