NEW DELHI: The government’s flagship ‘100 Smart Cities’ mission, if executed with focus and regulation, can bring in foreign capital as investors will have more confidence investing in successful business models, according to international property consultancy Colliers International.
“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,” said George McKay, South Asia director, office and integrated services, Colliers International India.
The government proposes to develop 100 cities as Smart Cities over the next three years. A total of 60 cities have been chosen so far, while the process for selection of the remaining 40 cities would start in January. The Cabinet has approved ₹48,000 crore, that is ₹100 crore per city per year for five years for the mission. States have to match this amount and gather funds through public-private-partnership and other schemes.
According to some estimates, $1 trillion is needed to fast track projects that are either already underway or are to be launched soon, majority of which is expected to come through foreign investment. Smart cities would not only help in attracting foreign investment, but also abet advancement of real estate in tier II cities as well, according to Colliers.
“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,” the consultancy said in a release.
Credits ET Realty