The term “smart city” depicts a picture of a city with unbeatable urban planing, smart infrastructure and latest information technology systems. The idea of developing smart cities in India was launched in year 2015 by the Government of India which includes 90 cities that will aim to provide the residents with an efficient and reliable infrastructure, enhanced quality of life and economic opportunities. Have a look at the features of a smart city.
Features of a Smart City:-
- Smart cities will help create walkable localities, reducing congestion, air pollution and resource depletion. The initiative will also boost local economy, promote interactions and ensure security.
- Smart cities will promote mixed land use in area based developments–planning for ‘unplanned areas’ containing a range of compatible activities.
- They will preserve open spaces, parks, grounds, enhancing living standards of the citizens and reduce urban heat effects.
- They will further promote transportation options.
- Smart cities will play a crucial role in making governance citizen-friendly. The initiative will help in bringing transparency and accountability.
- It will also help in giving identity to the cities, based on main economy activity, local cuisine, health, education, culture, etc.
- Applying smart solutions to infrastructure will be easy. There will be less vulnerable areas in times of calamity, natural disaster, etc.
Impact of smart cities on real estate
The above mentioned features of a smart city can be a effective contributor of a country’s development by giving a major flip to real estate in urban locations. The largest chunk of spending in smart city projects will be in areas related to real estate, according to The Royal Institution of Chartered Surveyors (RICS). Capital investment for the first 20 smart cities in India stands at Rs 48,220 crore. Out of this, 89 per cent will be spent on building environment, transportation, water, wastewater management and energy. Smart cities are likely to have a prolonged impact on real estate. High quality infrastructure, affordable houses, strong private-public partnership and demand for commercial real estate will be boosted by Smart cities initiative. Here are few impact of smart cities on real estate sector:-
- This will encourage the private realtor to develop better and world class residential and commercial in future with the help of modern infrastructure network.
- It will facilitate the pooling of capital from private enterprises and developers towards joint ventures. Also it will enhance the living standard, create more jobs, investment in real estate sector and economic development.
- It will reduce corruption and enhance clear dealing as Smart cities Mission are accompanied with RERA.
- The smart cities mission also provide affordable housing by allocating lands and capital development so that it reach to the lower income group, raise demands and hence energize the real estate market.