Tier-2 cities are quickly emerging as the new real estate growth engines in India as the country's urban landscape changes. Cities like Ahmedabad, Surat, and Bhopal are experiencing a resurgence in investor interest due to factors like infrastructure development, increased affordability, and changing lifestyle preferences. However, one particularly remarkable success story among them is Lucknow.

According to a recent PropEquity report, while many cities are struggling with slowing momentum, Lucknow saw a 48% increase in sales value and a 25% increase in sales of residential units. With 1,301 units sold, the city had the highest sales of any Tier-2 city, totalling Rs 1,797 crore. The need for organised housing, improved infrastructure, and growing employment opportunities is important.

“Lucknow is no longer just a cultural capital; it’s becoming an investment hotspot,” says Mohit Goel, MD, Omaxe Group.

“Smart infrastructure upgrades are unlocking real estate corridors. Strategic locations like Outer Ring Road and Raebareli Road are especially gaining traction,” he added.

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Expensive infrastructure projects like the Purvanchal Expressway, the Outer Ring Road, and the metro expansion are improving connectivity both within and between cities. The government's Smart City Mission and AMRUT programs, which are modernising urban infrastructure and enhancing livability, serve as a complement to this.

High-performing micromarkets are also becoming more prevalent, according to Colliers reports. The average land price in Gomti Nagar Extension has increased by 1.7 times in the past ten years to ₹7,500 per square foot, and is expected to increase by 1.9 times by 2035. Raebareli Road has increased 3.5 times to ₹3,900 per square foot, and Amar Shaheed Path has increased 2.4 times to ₹4,700 per square foot; both are predicted to continue to appreciate.

Yash Miglani, MD, Migsun Group, says, “Lucknow is rapidly emerging as a prime real estate hotspot. Demand is rising across segments, driven by buyers who refuse to compromise on quality or lifestyle.”

Commenting on the same, Neeraj Sharma, MD, Escon Infra Realtors, adds, “Micromarkets like Shaheed Path and Gomti Nagar Extension offer a mix of affordability and future-ready development. Lucknow isn’t just keeping pace—it’s paving the way for profitable returns.”

When Tier-2 cities emerge, Lucknow stands out as a leader thanks to its unique combination of modernisation, heritage, and forward-thinking planning, which is changing the real estate market and establishing standards for sustainable urban development.

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Disclaimer: The views and opinions mentioned above belong to the attributed persons only.