Recently, 27 cities were selected under the 100 Smart Cities Mission
, bringing the total to 60 cities. Maharashtra
topped the list with five cities, Tamil Nadu
were second with four cities each, next was Uttar Pradesh
with three cities. These cities will receive Rs. 200 crore from the Central Government in the first year and RS. 100 crore over the next few years.
The proposed investment for smart city projects in these 27 cities is around RS. 66,883 crore with RS. 42,524 crore for area based development and RS. 11,379 crore for technology based solutions. Area based development will include spatial planning in each city, augmentation of water supply, sewerage, electricity and transport facilities, while technology based solutions will include easy access to wi-fi connectivity, automated solutions and ICT (information and communication technology) services.
The government of India is working to create a favorable environment for its citizens. As per Colliers Research,
though the usage of technology in the existing or new built environment may come with its initial share of challenges for developers, but the increasing interest of the citizens and investors towards smart establishments will prove to be an added advantage to the developers. As smart cities is expected to bring in strong infrastructure & connectivity with technological advancements it will give a boost to the realty sector. Currently, real estate investment potential is mostly seen in Tier I cities, but the smart cities would abet advancement of real estate in Tier II cities as well. Commercial and residential spaces are getting scarce in Tier I cities like Mumbai and Delhi leading to congestion and higher densities. The upgrade in technology at commercial spaces offering services such as high speed internet, smart workstations and automated systems along with competitive rates may push some enterprises to expand to Tier II cities.
Smart city transport projects will also improve connectivity from Tier I to Tier II cities bringing them closer for business purposes. Residential markets will also thrive if new businesses come in Tier II cities.
“The planning of smart cities in India will bring benefits to the country at a vast level, providing an opportunity for suppliers to offer better products. Inclusion of Tier II cities and satellite towns of metro cities in the list of smart cities will siphon funds into these smaller cities improving their overall quality of life. If the Smart Cities Mission is executed with focus and regulation, it will also usher in foreign capital as investors will have more confidence investing in successful business models.” says, George McKay, South Asia Director, Office & Integrated Services at Colliers International India.
The Smart Cities Mission is aimed at creating urbanized spaces that are comparable to international standards not only to improve the quality of life for urban Indians, but also to attract foreign investors with state of the art infrastructure and technology.