The Indian real estate sector has undergone a massive transformation in the recent past. Urbanization has fast-tracked all over the country. A similar change can be expected from the 100 smart cities that the government plans to build in the country. The smart Cities Mission by the Government of India aims to accelerate economic growth and improve the quality of life of people by supporting local development and harnessing technology as a means to create smart outcomes for citizens.
Cities are for all people irrespective of gender, background, age, and ability and hence they have to be inclusive to be smart. Even as the government is working on the plan, a few smart cities are already coming up across the country. The focused development plan for the selected cities has had a catalyzing and enabling effect on the realty market of the concerned cities. The property prices have surged since the announcement and investors are expecting improved infrastructure, better social and physical amenities. Currently, it is one of the best growth drivers for the real estate, construction, and infrastructure sector.
Homebuyer and investors prefer spacious apartments in emerging locations, especially locations with less pollution and population than investing in smaller homes in an expensive location. Major development works in the smart cities like IT hubs, manufacturing units, metro, and road infra, among others, have played an important role in uplifting the growth of the region’s realty market. Most Indian state capitals and popular cities are now boasted with industry and manufacturing clusters, airports, improved healthcare facilities, education, and research institutes that largely impact buyers’ preferences.
The cities under the smart city initiative are comparatively less expensive than what a person on average would spend when living in a millennium city. Property prices in these cities are lesser than Tier-1 cities and they also come with attractive offerings like open spaces, community living, a clean environment, staying closer to family among others. On one hand, where these emerging cities boast an affordable lifestyle, these also are growing markets for luxury and premium retail brands, too.
Cities including Lucknow, New Chandigarh, Faridabad, Amritsar, Pune, Jaipur are already witnessing the great tractions for the organized mall culture. Several renowned domestic and international brands have already set up their eyes on these emerging markets. This brings them in line with metro cities which were primarily preferred for investment because of the rising employment demand and urbanized lifestyle. Those small city investors who hail from emerging markets may find better investment deals in the great options available with smart cities than in a metro where property values are sky high but the space inside is shrinking.