Smart Cities set to accelerate housing demand

Modi government’s thrust to develop 100 Smart Cities is fuelling demand in the real estate sector with even small towns becoming attractive investment destinations.
Real estate developments are mostly confined to metro cities but they have now begun to expand to tier-II and tier-III cities in states like Bihar, Madhya Pradesh, Chhattisgarh, Kerala and Odisha, among many others.
Experts believe that the Smart City project is a prime opportunity for real estate companies.
As per estimates, India’s urban population is expected to surpass 850 million by 2050, of which 50% is expected to be in the age group of 19-58 years. With increasing disposable incomes and nuclear families, this will consequently lead to higher demand for housing and organised retail.
Smaller cities with high mid-income population base are the epicentre of untapped demand for residential units, experts say.
High availability of land and that too at much affordable prices compared to metro cities come as an added advantage for real estate developers.
According to NHB Residex, on a year-to-date basis, tier-II and tier-III cities have witnessed better price appreciation compared to metros.
For instance, property prices in Ahmedabad grew by 8.1%, in New Town (Kolkata) by 6.5%, Chandigarh (5.3%), Nashik (5.8%), while prices declined by 5.8% in Gurugram, Chennai (1.5%), Mumbai (3.6%), and remained constant in Kolkata.
Conducive government policies and focus on physical infrastructure like airports, flyovers, metro rail corridors and a vast network of highways and expressways, are fuelling rapid growth in smaller towns.
India’s real estate sector is expected to reach a market size of $1 trillion by 2030 from $120 billion in 2017 and contribute 13% of the country’s GDP by 2025.

Related Articles


Shillong selected 100th after evaluation

Shillong has been selected as the 100th city to receive funding under the Centre's flagship Smart Cities Mission after evaluation of the proposal submitted by it, the Housing and Urban Affairs ministry. The ministry had, till now, kept on hold the final slot for the...

read more

Panasonic initiative in Internet of Things

India’s efforts to set up 100 Smart Cities are encouraging global electronic majors to step in for participating in these plans. Japan’s Panasonic Corporation has realised the emerging business potential of Indian Smart Cities and is aiming to work with developers and...

read more

Smart Cities’ projects to get underway in six months

Housing and Urban Affairs Minister Hardeep S. Puri has said Smart Cities' contours would be visible in six months. He said it takes 15 to 18 months for a Smart City project to get underway, as it takes that much time to appoint a project management consultant (PMC)...

read more


Submit a Comment

Your email address will not be published. Required fields are marked *

Share This