After spanning in the metros towns, urbanisation is fast casting its spell on the Tier II and Tier III cities as well. Lucknow - the erstwhile city of Nawabs - is on the fast track to become an urban conglomerate.
The city's authority has taken serious view of the congestion in the core city area and is concentrating on the outline areas for further growth and expansion of the city. They are focusing on areas near Hardoi, Sitapur, Unnao, Rae Bareilly and Bara Banki. This development has put all the near by areas in limelight. Owing to so much of attention, the property prices in these areas have grown over night.
The capital value for an apartment in Sitapur Road escalated to 1,200 Rs/sq ft in March as compared to 1,400 Rs/sq ft in November. The rental rates in this area range between Rs 3,500-4,500, which is just little less than rentals of Naya Haiderabad (Rs 5,000 per month) and Gomit Nagar (Rs 6,000 per month).
This escalation in property prices is also related to a steep demand. Sanjay Tolani from Sai Property, Lucknow asserts that many people want to buy plots/apartments in the peripheral areas of Lucknow, for investment purpose. These areas are witnessing a sudden demand. Property rates in Lucknow are very high. This forces a lot of people to look for a house in the near-by areas. Hence people who have surplus income are buying houses here for investment purposes. Also, these areas witness a huge demand for rental apartments. Hence flats/apartments here fetch good returns as well. This is a win-win situation and a lot of people are trying to cash on this demand.
Many big developers have sensed this fact and have announce their plans for apartments/ flats in these areas. Parsvnath has announced projects off Sitapur Road and this has encouraged many small-developers to pick up land banks near by. This has also caused an escalation in Lucknow property prices.
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