Till a few years ago, every real estate developer worth his salt was keen to launch his own township projects. However, in the aftermath of the global financial crunch, the integrated townships were either stalled midway or deferred indefinitely, bringing further lull in the real estate sector.
Nonetheless, it is felt that that the idea of integrated townships still has tremendous potential and that such development activity should be accorded 'Infrastructure Status' as it is believed that real estate development in the form of integrated townships will significantly improve the infrastructure of the city. Although, these projects have longer gestation period, they require immediate funds.
Integrated townships development is almost akin to the development of special economic zones (SEZs) with complete set of infrastructure facilities. An integrated township and group housing development includes the provision of residential, educational, medical and recreational facilities.
It also houses commercial buildings and has proper infrastructural facilities including water supply, water treatment, sewerage systems, solid waste treatment and management systems. Real estate developers need to be given incentives for creating such an infrastructure in the country. Hence, integrated townships development should be accorded an infrastructure status.
It has been seen that some of the bigger realty players have slowed down their township projects owing to the prevailing cash crunch. Even small and mid-sized developers who were earlier upbeat about the concept have either slammed brakes on their integrated township projects or scrapped them altogether due to an acute liquidity crisis.
The development of integrated townships has gained greater momentum in tier II and III cities and small towns in the country, where IT and ITes sectors are still burgeoning. The lure of a congestion-free living environment, a high standard of living and a peaceful ambience are the key marketing strengths of these projects. Moreover, an integrated township also aids in decongesting a city with its inbuilt facilities that include a variety of amenities within a single area.
The concept of integrated townships originated from the idea of ‘within the four walls’. It was meant to bring together the concept of home, entertainment, workplace, shopping and recreation facilities.
Integrated townships are considered to be a very profitable business proposition for developers and are best suited for the Indian market. However, with the real estate sector feeling the heat of the economic meltdown, the construction work on most of the projects hit a road block as the existing infrastructure could not cope with the financial crisis. Till some time back, the developers were reluctant to invest in big budget projects to avoid further losses. However, all this has changed since the upswing in the stock market, post the general elections.
The lifestyle of people has changed significantly in the past few years. In this scenario, it is seen that integrated housing has become the preferred choice for home buyers. The increased demand for convenience, modern lifestyle and affordability has further led to the development of integrated townships.
Considering the present economic environment, the demand for integrated townships has recorded a marginal decline. However, industry experts expect this segment to regain momentum once the realty market stabilises and investors’ confidence is restored.
Lalit Wadhawan is the Director of Bhimco Estate Agency, a mid-sized real estate company in Delhi that deals in residential properties |
