Mumbai: Realty Company Mantri Realty is betting big on south India and plans to foray into Chennai in Tamil Nadu and Belgaum in Karnataka with high- end residential townships. “We foresee a tremendous potential in Chennai in Tamil Nadu and Beglaum is just beginning to take- off. We are very bullish on both these new

Destination, “told the Mumbai- based company’s Chairman Sunil Mantri.

The company, which has committed and investment of Rs 1, 700 crore over the next three years in the south, is already present in a big way in Karnataka and Andhra  Pradesh with a land- bank of 600 acres and 100 acres respectively. “We are also contemplating building an IT SEZ over 25 acres in on of the campuses, “ Mantri said.

                                                                                                                                                                                        E.T 31-03-2008

RIDING HIGH ON THE SURGING ECONOMIC ACTIVITY, INCREASING DISPOSABLE INCOME AND GROWING ASPIRATION FOR MODERN LIVING, LUCKNOW IS BRACING FOR BIG TIME REAL ESTATE GROWTH

Lucknow, the city of nawabi culture, which has witnessed one of the highest growth rates in per capita GDP among similar cities in the country, has today grown into a bustling metropolis. Riding high on the surging economic activity, increasing disposable income and growing aspiration for modern living, Lucknow is bracing for big time real estate growth.

The current boom in the real estate is clearly visible from the residential and commercial development spreading out of traditional areas like Hazratganj to newer, emerging growth-centres like Gomti Nagar, Janakipuram, Mahanagar and suburbs. And, additionally, real estate development has assumed significant proportions along various highways which connect Lucknow to other important destinations like Kanpur, Rai Bareilly, Sitapur, Faizabad, among others.

  This all-round real estate growth is also marked by the entry of big national players. The scale of development can be gauged from the fact that around 100 local and outside developers are active in Lucknow, and around 10,000 dwelling units and over half a dozen shopping malls are in the pipeline, besides three operational malls.

Riding the property boom, the real estate in Lucknow has witnessed substantial price appreciation in the last 3-4 years. During the last four years, land prices have gone up 100-300% while the finished products have seen 100% price-increase, from Rs 1,100 per sq ft to Rs 2,200 per sq ft. Even the government agencies like Uttar Pradesh Housing Development Board (UPHDB) have increased housing prices by over 80% in the last five years. The residential developments by private developers have seen even bigger appreciation. With the ongoing boom, the residential prices range between Rs 1,500 per sq ft and 2,700 per sq ft. The retail real estate rental value is in the range of Rs 70-180/sq ft/month while the capital value varies between Rs 6,000/sq ft and Rs 20,000/sq ft. The commercial office rental value in Lucknow is Rs 30/sq ft/month and Rs/sq ft/month.

  There are several factors responsible for propelling the boom in Lucknow. Being an educational and economic hub, Lucknow also enjoys the advantage of a capital city of a state - India's largest state (UP) to boot. It has excellent air and rail connectivity. The construction of Lucknow bypass and Lucknow-Kanpur Expressway will considerably improve its connectivity with major centres like Kanpur, Rai Bareilly, Sitapur, Sultanpur.

The city's good infrastructure will get a further fillip with central government plan outlay under Urban Renewal Mission. A number of infrastructural improvements including Metro/Monorail are planned. Arindam Kumar Bardhan, GM (Marketing), Mapsko Group, says that taking advantage of the good infrastructural development and friendly policies of land development authority, leading developers have been able to build megatownships and malls that have contributed to the transformation real estate sector in Lucknow.

  With these growth drivers, newer areas of development have emerged in Lucknow. According to Trammel Crow Meghraj, Gomati Nagar has come up in a big way for retailing, offices and residential development, while Sapru Marg, adjoining Hazratganj, is coming up well for commercial activities. Main growth corridors for office segment are along Gomati Nagar and Ashok Marg covering Malviya Marg, Rana Pratap Marg, Park Road and Sapru Marg.

                                                                                                                                        Courtesy ET Friday 14-03-08

The residential real estate scene in Lucknow has undergone marked change in the recent years with frenetic developments in city and suburban areas like Mall Avenue, Civil Lines, Hazratganj, New Hyderabad, Janakipuram, Indira Nagar and Gomati Nagar. From group housing to bungalows, villas, condominiums, penthouses, high-end luxury apartments and townships, Lucknow is witnessing a new trend in lifestyle living. According to industry estimates, as many as 10,000 housing units are under development in Lucknow.

  Real estate developers have taken the apartment culture to Lucknoow and are developing group-housing projects in the city. Today, the apartment culture has become an integral part of city's residential real estate.

Luxury living has also caught on in Lucknow, in a big way. In fact, all leading national developers now active in Lucknow are busy developing luxury apartments, including penthouses.

Besides apartments, the integrated township concept has also dawned in the city, in a big way, with many big players busy developing mega-townships. "Today, there is a good demand for quality housing in Lucknow, which boasts of excellent infrastructure, international-standard yet affordable residential developments. As such, all developers are clocking good sales. Apart from apartments, there is a huge demand for residential plots which offer a good investment opportunity", says Suryavir Singh of Sahara Group.

                                                                                                                                                                      Courtesy ET Friday 14-03-08

Speaking about commercial projects, Sandeep Goel, MD, MSX Developers Pvt Ltd, says: "In view of the growing demand for good quality commercial space by the banks, insurance and telecom companies, financial institutions and corporate houses, the commercial real estate scene in Lucknow is revving up. The commercial developments are now spreading out to new growth corridors like Gomti Nagar, Malviya Nagar, Park Road, Mahanagar - and not just that, more and more Agrade office buildings are being developed."

However, R Mahendra, a leading real estate consultant specializing in corporate leasing blames lopsided policies of government agencies, which have been neglecting good commercial office developments at the cost of massive residential development. "For commercial office properties, the demand far exceeds supply, as good, legally sound properties are difficult to get," he says.

  Retail 

The retail scene in Lucknow that has been largely unorganized and confined to locations like Hazratganj, Janpath, Aminabad and Kaporthala has undergone a transformation with the emergence of mall-culture, leading to organized retailing. While Hazratganj continues to be a top high-street of Lucknow, places like Gomti Nagar and Saharaganj have emerged as the new hotspots for shopping malls.

  Avneesh Sood, director, Eros Group is upbeat about the prospects of shopping malls. "The success of existing malls has proved that there is a huge scope for retail development with major brands expected to take a plunge," he says.

  The two premier government agencies - Uttar Pradesh Housing Development Board (UPHDB) and Lucknow Development Authority (LDA) are contributing significantly to the growth of real estate and infrastructure in Lucknow. Lucknow has traditionally been an end-user driven healthy real estate market with realistic pricing and realistic appreciation.

Suryavir Singh believes that the future has a positive outlook and prices will hold ground: "Though, with slow down, the spiraling rise in property prices has been arrested, yet the prices will not go down as the market is not overheated. Today, with stationary demand and investors withdrawing slowly, I see a moderate 10-15% product-related price hike."

                                                                                                                                                                                              Courtesy ET Friday 14-03-08