Suburbs are the growth avenues
The Economic Times, March 22, 2009, Page 8
SUBURBS are a major avenue for growth opportunities in India. In the last decade, as incomes and businesses increased, all opportunities were found to be primarily in the suburbs.
The old towns were designed in a compact format keeping a small population in mind. At the time of Independence, only 10% of the population was in the cities while the rest was in rural areas.
But now the reality is that 90% of growth is centred around the new areas and the younger population is staying in these upcoming areas. As for India’s suburbs, the pros and cons are many. New and improved infrastructure and viable locations coming up, is the obvious advantage of these areas. But the cost of developing the infrastructure could pose a deterrent.
India never really thought of infrastructure as a requisite in earlier times. Only recently the government has started the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) where it encourages states to step up efforts and create better and improved cities. Such initiatives have been a very recent 4-5 year old story.
Over the years though, these suburbs have evolved in scale and quality. Earlier they were looked upon as broad extensions of cities. But now they are considered small cities, wellequipped in themselves. But challenges regarding law and order, security, healthcare, medical aid or any other aspect do exist. However, these can be tackled with various initiatives on the part of the government as well as the developers. The government must focus on infrastructure, electricity, water, road, sewage and other external services. Building airports, roads etc should be managed by the government. On the other hand, the internal infrastructure should be left for developers to manage — be it public or private developers. Everyone has their own expertise in the respective fields. At times, a joint partnership between private developers and the government can also work well.
Infrastructure development, in fact, needs to be given special attention as it is rather weak in these locations. Delhi, perhaps, is the only exception to that with the Metro and other forms of direct connectivity in place. Infrastructure should come first, before any other development takes place. In India, the infrastructure follows only later. Internationally, these bottlenecks are well taken care of. The general quality of suburban locations and the infrastructural development is quite well-matched abroad.
Unlike in foreign destinations, the pricing in suburban areas in India tends to be much less than that in core city areas. The reason for this is simple. The supply here has not come up in comparison to the demand being seen. Also, the land is cheaper in these areas thus scaling down the costs here.
We have upcoming projects in Thane and Panwel in Mumbai as well as the suburbs of Chennai and Pune. There has been an overall 15-20% drop in the prices of real estate projects in suburbs. But, I foresee a great demand ahead. I feel there will be unlimited demand for these locations June onwards.
(As told to Neha Dewan)
The Economic Times, March 22, 2009, Page 8
SUBURBS are a major avenue for growth opportunities in India. In the last decade, as incomes and businesses increased, all opportunities were found to be primarily in the suburbs.
The old towns were designed in a compact format keeping a small population in mind. At the time of Independence, only 10% of the population was in the cities while the rest was in rural areas.
But now the reality is that 90% of growth is centred around the new areas and the younger population is staying in these upcoming areas. As for India’s suburbs, the pros and cons are many. New and improved infrastructure and viable locations coming up, is the obvious advantage of these areas. But the cost of developing the infrastructure could pose a deterrent.
India never really thought of infrastructure as a requisite in earlier times. Only recently the government has started the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) where it encourages states to step up efforts and create better and improved cities. Such initiatives have been a very recent 4-5 year old story.
Over the years though, these suburbs have evolved in scale and quality. Earlier they were looked upon as broad extensions of cities. But now they are considered small cities, wellequipped in themselves. But challenges regarding law and order, security, healthcare, medical aid or any other aspect do exist. However, these can be tackled with various initiatives on the part of the government as well as the developers. The government must focus on infrastructure, electricity, water, road, sewage and other external services. Building airports, roads etc should be managed by the government. On the other hand, the internal infrastructure should be left for developers to manage — be it public or private developers. Everyone has their own expertise in the respective fields. At times, a joint partnership between private developers and the government can also work well.
Infrastructure development, in fact, needs to be given special attention as it is rather weak in these locations. Delhi, perhaps, is the only exception to that with the Metro and other forms of direct connectivity in place. Infrastructure should come first, before any other development takes place. In India, the infrastructure follows only later. Internationally, these bottlenecks are well taken care of. The general quality of suburban locations and the infrastructural development is quite well-matched abroad.
Unlike in foreign destinations, the pricing in suburban areas in India tends to be much less than that in core city areas. The reason for this is simple. The supply here has not come up in comparison to the demand being seen. Also, the land is cheaper in these areas thus scaling down the costs here.
We have upcoming projects in Thane and Panwel in Mumbai as well as the suburbs of Chennai and Pune. There has been an overall 15-20% drop in the prices of real estate projects in suburbs. But, I foresee a great demand ahead. I feel there will be unlimited demand for these locations June onwards.
(As told to Neha Dewan)
Posts
No comments:
Post a Comment