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Cabinet Committee on Economic Affairs approval of 12 new industrial smart cities is aimed to boost manufacturing sector particularly in the metals, cement, and construction sectors. As per industry experts, this Rs 28,602 crore-investment plan, set to unfold over the next three years, will not only benefit construction and manufacturing companies but, also drive the real estate growth.
These cities will be built as smart industrial hubs under the National Industrial Corridor Development Program (NICDP) in key regions, such as Khurpia in Uttarakhand,Rajpura-Patiala in Punjab, Dighi in Maharashtra, Palakkad in Kerala, Agra and Prayagraj in Uttar Pradesh, Gaya in Bihar, Zaheerabad in Telangana, Orvakal and Kopparthy in Andhra Pradesh, and Jodhpur-Pali in Rajasthan.
REGIONAL DEVELOPMENT
The NICDP focus is on multi-modal connectivity and strategic location of industrial cities along major highways, railways, airports, and ports. This not only ensures seamless logistics and transportation but also enhances regional development, not restricted to one region or state but across the nation, as cited by the 12 industrial cities approved in various states including the economically weaker cities.
These 12 cities are in addition to the existing ones in Greater Noida in Uttar Pradesh and Dholera in Gujarat to boost domestic manufacturing. The new industrial cities spread across 10 states such as Andhra Pradesh, Bihar, Kerala, and Telangana and six major industrial corridors would come up by 2027 with green infrastructure & global standard development.
G Hari Babu, President, National Real Estate Development Council (NAREDCO), said that the approval of 12 new industrial smart cities will open up opportunities for industrial as well as real estate investment, as these areas are likely to see a surge in interest from both businesses and homebuyers looking to benefit from the new industrial growth. The increased economic activity and improved connectivity will drive growth in these regions, making them more appealing for new developments.
THE REALTY CHECK
The first impact of these greenfield smart cities aligned to the golden quadrilateral and the PM Gati Shakti National Master Plan, will be the development of connectivity infrastructure. The strategic investment in industrial growth will create big scale employment opportunities, estimated to be about 1 million direct jobs and up to 3 million indirect jobs, which translates into need for housing, offices, education, health-care and retail real estate.
These hubs designed to incorporate the latest urban planning concepts such as 'plug-n-play' and 'walk-to-work', ensuring seamless integration of residential, commercial, and industrial zones, are also said to affect the prosperity of the surrounding regions bringing in more demand for real estate development. Retail, hospitality, and service industries will benefit from the influx of residents and the increased economic activity generated by the industrial parks.
Vishal Raheja, Founder & MD, InvestoXpert.com was of the view that these Smart cities will emerge as big economic hubs, encouraging innovation and investments on a large scale. More than 500,000 direct employment opportunities are likely to be generated in these hubs, while the requirements of residential and commercial real estate will see a quantum leap, which in turn, is projected to appreciate values as high as 20% in just five years. The inflow of technology companies with qualified professionals will result in good demand for quality real estate and, thus, the creation of pulsating economic centres.
LOOKING AHEAD
Real estate developers view the National Industrial Corridor Development Program as the key in the economic progress of the country. The greenfield industrial smart cities with global standards of development to attract foreign manufacturers will create the next wave of real estate growth and city planning.The real estate experts foresee an uptick of about 15-20 percent in adjoining towns in next couple of years with growth in the housing and commercial space demand.
Urban planners state that the smart cities concept of “plug and play” and “walk to work” will have a ripple effect on the real estate sector of smaller cities, with increased demand for housing, commercial spaces, and allied industries, paving the way for overall balanced urbanization, not restricted to top metro cities. However, the key lies in the timely execution of these projects to see the benefits.
The proposed industrial cities have minimum contiguous area of 1,000 acres (with some exceptions) and they are to be developed as greenfield smart cities. However, the key lies in the timely execution of these projects to see the benefits.
