Lucknow's Real Estate Renaissance: A Tier-II Success Story

While India's tier-II real estate market faced an 8% decline in Q1 2025, Lucknow emerged as an exceptional performer, defying national trends with remarkable growth in the heart of Uttar Pradesh.

National Market Overview

According to PropEquity data, housing sales across top 15 tier-II cities dropped from 47,378 to 43,781 units, though overall transaction value rose 6% to ₹40,443 crore.

Lucknow's Outstanding Performance

Lucknow recorded a 25% surge in residential unit sales with 1,301 units sold, alongside a spectacular 48% jump in sales value to ₹1,797 crore—the highest growth among all tier-II cities.

Key Growth Drivers

• Infrastructure Development: Lucknow Metro expansion and improved road networks
• Employment Growth: Substantial opportunities in IT and manufacturing sectors
• Organized Housing Demand: Strong preference for quality developments

Market Comparison

Other positive performers included Coimbatore (21% growth), Gandhinagar (18%), and Mohali (2%). However, cities like Visakhapatnam (-37%), Jaipur (-32%), and Bhopal (-31%) faced significant declines.

Future Outlook

Supportive factors include RBI's 50 basis points repo rate cut, ongoing infrastructure improvements, and reverse migration trends where professionals invest in hometown properties.