Real estate development in India: Smart cities and beyond

India is a trillion-dollar economy now and has started developing its urban landscape into smart cities with better infrastructure. Improving the living standard is the main objective of real estate development in Tier -1 and Tier-2 cities. The changing standard of the world reflects the need for smart cities as sustainable and comprehensive areas are the need of the hour. The central government’s Smart Cities Mission has identified a hundred of Indian cities for extensive development. ​

Smart cities: Redefining urban India

A new trend in urban India is the creation of smart cities, combining traditional infrastructure with digital technology. Using smart systems to enhance efficiency, reduce costs, and engage residents to improve living standards. These cities are designed to be sustainable, efficient, and provide a better quality of life. Cities like Pune, Jaipur, and Kochi are part of the government’s Smart Cities Mission, which focuses on creating advanced urban space with features like smart energy management, intelligent traffic solutions, and integrated waste management.

Real estate in urban areas

Due to smart city initiatives and infrastructural development, real estate activity has increased in India’s major urban centers. Cities like Mumbai, Delhi-NCR, Bangalore, Hyderabad, and Chennai have received the maximum amount of development and redevelopment. There is an increasing demand for effective first and second spaces like residential and commercial areas. Developers will do well by focusing on creating relevant properties in these cities. 

​Residential developments

Urbanization has boosted demand for contemporary, affordable housing with sustainable infrastructure and modern amenities. Consumers are looking for smart homes with stronger smart security systems and better energy efficiency. So, developers need to focus on building smart homes with these features. 

Commercial and retail space

Smart city development aims to create business-friendly environments. With the growth of multinational corporations, startups, and entrepreneurs, this has increased the demand for office space with advanced infrastructure, co-working space, and retail developments.

Opportunities in peripheral areas

Areas near to these smart cities in urban and peri-urban areas have become attractive for investments. New transport links like metro networks and expressways connecting these areas to cities are attracting investors and driving development, especially with increased retail areas for leisure and industrial centers.

Industrial hubs

As commercial and retail areas move into new smart cities, connectivity has improved. We have seen a rapid growth of industrial and logistics hubs in suburban and peri-urban areas. These hubs meet the growing demand for warehousing, manufacturing facilities, and distribution centers, crucial for efficient supply chain management in a growing economy.

Integrated townships

Urban planning is gaining popularity in surrounding areas through integrated townships. Blending residential, commercial, educational, and recreational amenities, these communities promote a balanced lifestyle and reduce dependency on overburdened urban regions. Integrated townships are attractive for homebuyers seeking a comprehensive and sustainable living environment. 

Challenges and considerations

• Financial Investments: Dual funding from both the public and private sectors is crucial for large-scale infrastructure projects. Challenges such as funding mechanisms, land acquisition, and regulatory approvals can delay projects and affect their feasibility.
• Policy Framework and Governance: Successful implementation relies on clear policies, strong governance, and collaboration among stakeholders. Simplifying bureaucratic processes and promoting transparency are essential to accelerate project execution and build investors’ trust.
• Addressing Infrastructure Gaps: Despite progress, there are significant infrastructure gaps in urban transportation, water management, and waste disposal systems. Adopting sustainable practices and innovative solutions is vital to fill these gaps and ensure long-term success of smart city projects.

The development of robust infrastructure and intelligent urban areas is critical for India’s ascent to prominence in the global economy. The real estate sector, which is closely related to these developments, would benefit from expenditures made on modern infrastructure and sustainable urban planning. As India progresses, it is vital to leverage its demographic advantage and technological capabilities. The synergy between infrastructural development, smart cities, and real estate is poised to transform India’s urban environment, fostering inclusive growth, and prosperity.

-The author is managing director and CEO of Bharat Realty Venture.