Uttar Pradesh is the largest state in the country and in terms of sheer population alone; it would be the fifth populous country in the world. The state has been the bedrock of Indian political scene with many presidents and PMs having come from this state. Lucknow, its state capital, is the seat of power and over the last few decades has seen massive development in real estate.
Lucknow has been a late bloomer in the real estate market as the state governments in the last decade or so realised the potential of the city after having witnessed the scorching pace of development at Noida, another city within UP, which is a suburb of capital of Delhi. While UP has traditionally seen small scale cottage industries like textile, handicrafts, leather etc., off late the government has embarked on pushing IT and ITeS based industries as well in the city of Lucknow. This has given a great impetus to the development of residential and commercial real estate projects in the city. Almost all major builders operating out of North India are now active in the Real Estate in Lucknow. The likes of Paras, Eldeco, and Sahara etc. are building Property in Lucknow.
The advent of Real Estate (Regulation & Development) Act has also helped galvanised the market. Also known as RERA, this act was promulgated by the central government to bring in transparency and accountability in this sector which is the largest employer of workforce in the country. The act was first notified on 1st May 2016, and the remaining provisions came into force on 1st May 2017. The act brings in even terms that were earlier lopsided in favour of the builder leaving the buyers at the mercy of the builders. The industry had been going through turmoil as many projects were delayed, speculative buying was rampant and genuine home buyers were stuck with loans with no visibility of completion of projects.
The RERA brings in certain norms that bring in transparency in terms of clear declaration of approvals before the launch of a project by the builder, provision of escrow accounts to safeguard the money to be used only for the specified projects, equivalent penalties on builders as well in cases of delays, etc. The Uttar Pradesh government under the new chief minister, Yogi Adityanath, has also taken this act very seriously. The government has notified the UP RERA and launched its website on 26th July, 2017. The government is in the process of appointing regulators and authorities to look into the implementation of the day to day functions under the act. This has raised confidence among the buyers and there already are positive signs from the Noida and Greater Noida area wherein a lot of pending projects have seen renewed action on the ground. As per some estimates, close to 50,000 home buyers are expected to get possessions of their houses over the next 4-5 months. The Lucknow Real Estate has similarly reacted very positively and there is a fresh momentum all across the board.