10.50 PM Thursday, 28 March 2024
  • City Fajr Shuruq Duhr Asr Magrib Isha
  • Dubai 04:57 06:11 12:27 15:53 18:37 19:51
28 March 2024

India announces ambitious plan to build 100 smart cities

State capitals, and many tourist, heritage cities are expected to witness a rapid upgrade of urban infrastructure. (Reuters)

Published
By VM Sathish

Indian government has announced an ambitious 100 smart cities programme. State capitals, and many tourist, heritage cities are expected to witness a rapid upgrade of urban infrastructure and online services to citizens, enabled by Information Technology.

Indian property prices, currently stagnant, are expected to witness major investment flows if the government’s plans for 100 smart cities and 500 other city developments all over India come to fruition.

“The government has taken commendable steps to finalise several landmark reforms, including the opening of retail sector to global investors, a new land acquisition law, streamlining the approval mechanism and appointment of a real estate regulator in each state,” said MI Sait, Chairman and Managing Director, Mindscape ME, organisers of Realty India Expo 2015, being held in Dubai over this weekend.

“[These steps are] in addition to liberalising Foreign Direct Investment norms in real estate and agricultural sector, introduction of REIT and allowing external commercial borrowings up to $1 billion for affordable housing sector. This is expected to improve the overall business environment across the country in the coming years,” he said.

“It is estimated that the real estate sector has the potential to increase fivefold to reach $676 billion by 2025, particularly when the Indian government is finalising plans to announce 100 smart cities and 500 other cities across the country,” Sait added.

But are these grand plans achievable, and what about maintaining these cities?

Availability of new property management companies to take care of NRI homes in their absence in India makes investment in multiple Indian cities a viable choice for many, according to the market specialist.

“Every square feet of commercial property absorption in a city generates demand for three square feet of residential property. Availability of property management companies to take care of NRIs during their absence in India has made investment in multiple cities a viable proposition and hassle free exercise,” said Sait.

“The strong police announcements made by the government of India towards providing housing for all by 2022 strengthens our vision of providing future ready sustainable homes to every Indian by 2030,” noted Rahul Nahar, Chairman, XRBIA Developers.

“Coupled with increased focus towards creating suburban infrastructure corridors outside large cities by increasing the spend on local rail corridors, multimodal road networks and an increased impetus on urban infrastructure, will enable the overall industry to build the millions of units that the country needs for its housing deficit,” Nahar said.

“The repatriation benefits up to two residential units and annual repatriation limit up to $1 million out of NRO account arising out of income from sale of properties, rentals have made investment in the real estate a lucrative opportunity for the NRIs,” said Sait.

The property show that begins tomorrow will bring together a large contingent of Indian property developers in one place displaying a range of property options for NRIs, the organisers said. 

The two-day exhibition will showcase varied residential projects from various Indian cities like Ahmedabad in Gujarat, Bengaluru in Karnataka, Chennai in Tamil Nadu, Hyderabad in Andhra Pradesh and various projects in the state of Kerala, the National Capital Region (NCR) Delhi, Mumbai and Pune in Maharashtra and other major Indian cities. In addition, there will be developers from tier two cities like Coimbatore (Tamil Nadu), Mangalore and Mysore (Karnataka), which are now driving NRI home demand, organisers said.

Plotted development projects, affordable housing, luxury apartments, row houses and villas are among various property categories to be displayed. In addition, there will be NRI consultancy services to clarify customer queries on property investments, home loans, tax planning and repatriation procedures, aid a media note from the organisers.

“This year, the mega Indian property show is happening at a time when the property prices are stagnant and home loan lending rates have been reduced with a special concession for woman home buyers on interest rate front,” said Sait.