Indian Smart Cities To Continue Ruling Real Estate Market In 2023

2023 is all set to witness the completion of Centre’s flagship urban transformation scheme, the Smart City Mission. Launched in June 2015 by the Prime Minister Narendra Modi, the much talked about scheme saw the Centre selecting 100 cities from across India, which will be developed giving access to the citizens to core infrastructure, a clean and sustainable environment, and a decent quality of life through the application of smart solutions.

The period of implementation for the mission was extended up to June 2023 and this makes 2023 one of the most significant years for the Smart Cities in India. With the data by the Ministry of Urban Affairs revealing that nearly 88 per cent of the funds given by the Centre for smart city projects has been utilised. As on December 2, 2022, the government has released Rs 34,675 crore of which Rs 30,418 crore (88 per cent) has been utilised. Work orders have been issued in 7,738 projects worth Rs 1,81,112 crore of which 4,987 projects worth Rs 92,439 crore have been completed.

With the project coming to an end, here is look at what the smart cities in India can see in 2023, according to the industry.   

The smart city mission played big on increasing infrastructure facilities, traffic management and security. This not just increased the real estate value of the chosen cities, but also saw people preferring them over bigger cities. The UPRERA’s recent data has added to the fact that with better infrastructure, registrations have gone up 60 per cent in Non-NCR cities in UP, which include smart cities like Lucknow, Varanasi, Agra and Moradabad, over the NCR region.

Khalid Masood of Shalimar Corp said that adaptability will continue to be a keyword for smart cities in 2023 too. “The increasing trend of the population moving to smart cities is equally rewarding. The pandemic has ironically revolutionized the way we look at our living spaces. And the Smart city mission has given better, state of the art infrastructure facilities to tier II cities as well. For 2023 too, the real-estate industry will continue to bring more options for home buyers and investors in cities that have experienced growth due to the smart city mission.”  

Waste management is another important aspect of the smart city mission. The entire project focussed on separating the drainage with sewage and managing day to day garbage disposal in a sustainable manner. Private players were roped in for the project to ensure best implementation and even after the project ends, this will be a key factor for continued implementation.

Rajesh Mathpal, project director of Suez India, a company that partners in waste and water management projects for smart cities, said that waste management and disposal will continue to be a priority even in 2023. “Along with this, treatment of the sewage water generated in the city will need to be worked upon in a continuous manner even in 2023, to create a hygienic environment and to provide better living conditions to the people of the city. Since 2023 will see a big shift towards renewable and alternative energy sources, the best utilization of the waste would be reusing it or generating electricity.” 

Better traffic management and security through CCTV cameras and Integrated Command and Control Centres has made the smart cities even ‘smarter’, raising their real estate value and this will continue in 2023 too. Mukund Halwasiya of Halwasiya sons said that the mission, launched by Prime Minister himself, made it easier for the working class to shift back to its native city. “Good infrastructure, better employment opportunities and post covid hybrid work culture have given an impetus to demand in smart cities and people now consider them to be a viable alternative to metros. This trend will continue in 2023 too, as these cities have now become a great option for sustainable living.”