The central government’s ambitious smart cities project and Union Budget 2016 have together brought good news for new home buyers.
In the first phase of smart cities projects, the Union Government has picked 20 cities which will developed as per the norms established. These 20 cities may not be among the popular residential market today but with the infrastructure overhaul they are expected to be among the top livable cities in the country.
The central government ambitious smart cities mission will boost the real estate market, say experts. This new move is also expected to bring great opportunities for the realty sector. The government is expected to spend 89 per cent of the proposed Rs 48,000 crore for the first 20 cities. This investment would be towards housing construction, urban development, transportation, water and energy.
Impact on real estate
According to white paper released by RICS, smart cities mission will provide immense opportunities for high volume real estate developments in the country. This would also bring huge capital investment from foreign countries. The report says that a big part of this fund has to be invested to empower the civic infrastructure of the cities, which has got the developers enthused. The top cities of India who has not seen new launches in residential and commercial property since very long time, will get accelerated with the start of project.
According to RICS report; 7 per cent of the total investment is allocated for technology infrastructure, while 4 per cent of investment is allocated for public services.
Read : Impact of the Smart City tag
The Union Urban Development Minister too has urged more companies – especially the multinational companies to make investment in these upcoming smart cities.
Right time to invest:
Real estate is an investment zone, where there is believed that money invested now will fetch better returns, even better than SIP’s, mutual funds, fixed deposit and other traditional investment tools available in the market.
The new real estate bill will also play an important role in the smart city story by protecting the interest of home buyers and bring in more transparency in real estate industry.
“The prime objective of India’s smart cities program is to encourage cities that provide core infrastructure and give a decent quality of life to its citizens, a clean and sustainable environment and application of ‘smart’ solutions”. This project will stir the real estate market and will put positive impact on the property market”, says Harish Arora of Saksham services.