Gulf NRIs investing in Lucknow

Recent trends in Lucknow suggest that Gulf NRIs form the major chunk
of investors for affordable realty deals in the city. NRI investment
is increasing due to the lower realty prices in Lucknow as compared
to exorbitant property prices in metros like New Delhi and Mumbai. The
prime and suburban locations of Lucknow, especially Indira Nagar and
Gomti Nagar are undergoing intense construction activities.

India’s leading real estate developers like Parsvnath, Eldeco and Omaxe
have already come up with their residential projects in the outskirts
of the city as the old city has become very congested and has little
scope for further developments. Besides, Sahara Group is also coming
up with two mega residential projects – Sahara Estate and Sahara Grace,
in Janakipuram, which is mainly a higher and middle income residential
location.

Nevertheless, land prices continue to rise every passing day. Also
the apartment capital values in Gomti Nagar and Hazratganj is around
Rs 1800-2000 per sq ft. The rental value is between Rs 5000 to 10000
per month. Rental value in Janakipuram for a 2 BHK apartment is in the
range of Rs 5000-5500 per month.

The city’s brokers point out that after the real estate boom the city
witnessed a number of small builders, who build small one-room flats
and shops joined the list of real estate developers in the city and
they invested heavily in the projects. However, due to the increase
in the cost of mortar, steel and other building materials forced them
to sell of their projects at lower costs. Many of them have shelved
their future projects also. Rise in interest rates also played a spoil
sport to their business.