A significantly high level of investments being made by large corporate players to acquire prime property for mega retail ventures within the city is now driving smaller builders to the city’s outskirts.
The smaller builders who could make a fortune out of selling their land or property to large retail players in the city’s prime locations are seeking greener pastures for fresh investments in what they term as ‘highway plazas’. However, most builders still feel the best selling opportunity for shops and office space in the highway plazas is still two years away on the city’s outskirts.
“The highway plazas have been gradually coming up during the past one year aren’t structurally built like malls or supermarkets. They are plain vanilla commercial complexes comprising shops and some large halls created as office spaces with very high prospect of generating huge monthly rentals during the next two to three years”, Vikram Mehta of A&J Associates, a property consultant told HT Lucknow Live.
He said that the rising commercial activity in the form of shopping complexes, clubs, restaurants and automotive showrooms in the Lucknow-Unnao and Lucknow- Rae Bareilly Road highway segments are an indication of the things to come in the real estate sector.
Most of the commercial real estate activity along highways is being prompted by the residential townships being planned by large builders on land cheaper by atleast 30 per cent compared to rates prevailing within city limits.
“The current floor rates for shops in upcoming commercial complexes are in the range of Rs 1,400 to Rs 1,800 per sq ft along the highways which may rise quickly as more business shifts to city’s outskirts,” Mehta said.
Many of the property brokers have already established small offices in under construction commercial complexes in the Lucknow-Rae Bareilly Road segment and the Lucknow-Unnao streach during the past one-and-a-half years in the hope of cashing on the rising real estate activity along the highways. Too many shops may not be selling even in completed plaza projects but builders seem determined to develop properties in the city’s outskirts well in advance.
A small number of apartments built along the Amausi-Banthra highway streach already have a sizeable population of residents, say real estate analysts keeping track of construction activity on the outskirts of the city.
“There are a few large make-shift dhabhas now witnessed on the Lucknow-Kanpur corridor barring restaurants established by the Reliance Petrol Pump and the Indian Oil Corporation.”
“The rising commercial activity is also being prompted by tendency among smaller builders to buy land at comparatively much cheaper rates along highways passing through Banthra, Rae Barelily or Unnao than Lucknow,” they added.