Real estate is one of the most in demand investment choices in the country because of its time and tested methods. Capital appreciation is great and is a stable source of rental incomes for people of all ages and investors of all types. 

However, if you are looking to invest in real estate, you will be baffled by the number of options the current market has. A few years ago, before the arrival of RERA, buying a residential property was thought to be the safest option. However, with time, the industry went through some drastic changes. Commercial properties are the new normal. And, if trends are to be believed, co-working spaces, studio apartments, and other new-age developments are leading the way. 

As an investor in Lucknow, it is important for you to be informed about the major developments in the city. And today, let's discuss this in detail with respect to the city of Nawab's real estate sector. 

Understanding Lucknow's real estate market

Lucknow and real estate aren't a new phenomenon. The two have always been together for a long time. However, in recent years, even the common men are attracted to the sector and are making remarkable investments. However, a few years before the arrival of RERA, the market was highly cluttered, and there weren't many options on where to invest and how. 

However, today, Lucknow's real estate market is rather streamlined. And there's high investment confidence in the market which is a great advantage for the people dwelling there as well as seasoned investors.

Here are the major reasons for which Lucknow is experiencing an increase in its real estate sector:

• Increased investor confidence due to arrival of acts like RERA (Real Estate Regulatory Act) and LDA (Lucknow Development Authority). 

• Better governance and a fast-paced structure to avoid delays in projects and wrongdoing in the market

• Improved focus on development, especially on connectivity and physical infrastructure

• Lucknow, in the last five years, have exponentially attracted MNCs and global companies to lay their foundation and IT parks. 

• Focus on sustainable development, smart city planning and initiatives that are eco-friendly and future-ready

• Private-public-partnership has paid off well in developing futuristic properties like Ekana Sportz City and Sushant Golf City. 

Residential vs Commercial Developments in Lucknow: What should you choose 

Choosing the right type of property is always subjective, and it depends on several factors. Hence, there is never a straight answer to this. However, if you are looking for a real estate investment in Lucknow, it is important that you have a clear understanding of what the types of properties are and what your investments are. 

• Residential properties

Residential properties include apartments, flats, penthouses, villas, and residential plots where you can build a property of your choice. It can either be rented out to tenants looking for rental accommodation or. Alternatively, investors can reside in it themselves. From an investment perspective, residential properties do not have the upper hand. The reason is that the rental terms are shorter (3-11 months), and rentals are merely 2 to 6% of the property price. However, what sets them apart is the safety that the property offers. 

• Commercial properties 

Commercial properties generally include retail shops, office spaces, food courts, commercial studio apartments, double-height shops, anchor shops for sale in Lucknow, and more such spaces that can be used for commercial or business purposes. You can not reside in them, but you can use them for commercial purposes or simply rent them out to other businesses and entities. 

From an investment perspective, commercial properties pay off well. This is because the rental term ranges from 3 to 15 years (with price revision every 3 or 5 years based on the agreement). Rentals here are higher (8-12% of property price) and are immune to inflation, which means the property price and rental are dependent on how the economy of the region is functioning. 

Choosing the right property 

As said before, choosing the right property is no straight answer. This is because investment is a very subjective topic. It depends on the particular investor on what they are looking for and what their expectations from the properties are. 

Here are some subjects that you need to know to make the right decision for investment:

• Know the market where you are willing to invest. If you want to make a real estate investment in Lucknow, you need to make sure that you are aware of the region's market. 

• Know the reason you want to invest in the market. The purpose plays an important role in selecting the property. 

• Know what your budget is and how you would like to finance your purchase.

• It is important to understand how long you are willing to hold your investment. Determining if your purchase will be short or long-term will help you strategize your purchase and sale plans. 

• Both residential and commercial properties are of different types. Hence, make sure you know your options well in advance. Remember, being knowledgeable is a negotiator's biggest weapon. 

Best properties in Lucknow to invest

If you are convinced what property will work the best for you in the long term, here are some of the best properties that you can check out in Lucknow. 

Gomti Nagar Extension, Sultanpur Road, and Amar Shaheed Path are some of the best locations for buying real estate properties in 2024. These areas are witnessing amazing transformation and are being developed under the smart city initiative. 

Here are some of the top residential properties in Lucknow:

• Rishita Manhattan & Mulberry 

• Ekana Ontario 

• Excella Kutumb 

• Sahu City

• Pintail Park City

• Levana Bliss Delight

Some of the top commercial properties and their offerings in Lucknow are:

• Migsun Janpath retail shops, food courts, office spaces, and studio apartments 

• Migsun Lucknow Central shops and food court 

• Office space business suites in Ekana Mall

• GPCL Brij Tower in Sushant Golf City offers office and retail spaces. 

The closing statement 

Investors must evaluate their investment aim, risk tolerance, and tenure carefully before selecting between residential and commercial real estate investments in Lucknow.

Options in Lucknow and other micro-markets vary from those based on financial constraints to those based on market dynamics and long-term objectives. The development of real estate micro-markets for real estate investors is the township's expansion.

A well-considered and planned choice may help unlock the full potential of Lucknow's real estate, regardless of the reason for the investment: the security of residential properties or the chance to earn large profits from shops for sale in Lucknow.