Gomti Nagar

How good is Gomti Nagar extension for property investment

How good is Gomti Nagar extension for property investment

Lucknow has undoubtedly emerged as a real estate investment hub in last decade or so. While the whole city has seen increasing real estate activities, the localities on Shaheed path (Known as Gomti Nagar extension) have offered better returns and continue to hold their premium position. Let’s look at the reasons as to why this area continues to attract investors –

  1. Well planned development – Gomti Nagar and Gomti nagar extension are one of the largest planned residential areas of Uttar Pradesh. The whole infrastructure development in the area is new and has been planned well. This contributes to a more relaxed living for the residents of this area.
  2. Excellent connectivity – Gomti Nagar extension area is very well connected to the other parts of the city. It has proposed metro connectivity also. The airport and station are connected through special expressway, which avoids the congested city roads.
  3. Best facilities – The locality has everything that one can wish for in a residential address. Large green parks and sporting facilities including the Ekana international cricket stadium make this area very different from any one can think of. There are good shopping areas and largest mall of Lucknow, the Phoenix shopping mall. The concentration of good schools, including some international schools make it easy for families with kids. The heath facilities are top class and easily available. There are multiple opportunities for employment nearby including a software technology park.
  4. Affordability – The best part of housing in Gomti Nagar extension area is that despite wonderful amenities, the prices of properties are quite reasonable. Paarth infrabuild has two residential communities here, Paarth Arka and Paarth Aadyant. These are at the best location of this area and have affordable 3 and 4 BHK apartments. However, this opportunity for investors may be short-lived as the number of available units are limited.
  5. Appreciating value – In last ten years, ever since the Gomti Nagar extension area was launched, the prices have been appreciating annually here. In last few years, even when residential real estate stopped appreciating everywhere (and saw a downward trend in a lot of localities), the properties here have seen a consistent appreciation. This has been probably due to new infrastructure and amenities being created regularly. There is still good scope for property price appreciation here as people look for large units post pandemic and the price in nearby Gomti Nagar has escalated beyond affordability for most people. Therefore, those who are looking for property investment in Lucknow are heading here searching for right property.

All the above factors make this area very appealing for property investors as well as end users. The rental yields are also good and with multiple employment opportunities, it is not tough to find renters any time. Paarth infra build has two good projects, Paarth Arka, the highest building of Lucknow, beautifully designed by architect Hafeez contractor and Paarth Aadyant, a project where people are already living. The location and design of these properties have helped them take a premium position in this micro market and will hopefully help driving more customers to this area. 

3 BHK v/s 2 BHK Apartment

While buying the first house, a question which one faces all the time is as to whether one should buy a 2 BHK or a 3 BHK apartment. Needless to say that it depends on one’s needs and affordability, but it is not such a simple decision. It is important to understand that the decision being taken now will stick for a long time for one doesn’t change a home easily. The important considerations in this decision are – 1. Current and planned family needs, 2. Available budget and 3. Purpose (self-occupation or investment (renting).

Buying a home is a long term and an emotional decision. Therefore, the decision most of the time can’t be limited by the above 3 considerations very strictly. It is especially true for people buying their first home. There is a certain amount of pride involved in buying a first home on your own – you may have started earning a few years back and now look to invest the surplus money in a way that provides you long term security in the form of a home. First home buying is also an emotional moment in countries like India because of the association of this event with one’s status in society. Therefore, it is important to do consider all the aspects, while buying a home. Let us now look at each of the above-mentioned 3 aspects in detail.

The first thing one needs to do is to understand the family needs currently as well as planned requirements for the future. It is also important from the perspective that the family requirements change at various stages of life and one doesn’t want to keep moving house every time. It is important to consider points like how many kids are there in the household and if the grandparents are going to be staying in the same house. If there is a plan to start a home office for either of the spouses, it is important to put it down as part of the requirement. This needs a detailed thinking process and should not be hurried into.

Another important factor that needs consideration is the budget. One needs to make a personal financial plan to understand the money which can be taken out without affecting other functions of life adversely. Though, housing financing companies offering home loans at attractive rates and terms has helped people stretch beyond their current means. However, it is advisable to take help from a financial planner on this aspect. Housing finance companies also offer help in the form of guiding a prospective home buyer on calculating the loan eligibility and the resulting EMIs.

The purpose for which one is buying a house is also very important. While for self-occupation, it may be advisable to stretch the budget a bit and look for a bigger house, the investments have generally grown faster in the case of smaller units. It is also easy to find a renter or a buyer of a smaller house.

It is, therefore, important to consider all these factors in detail and strike a balance between needs and budget before deciding what size of the home is preferable.