Booking a flat in a promising and fast developing smart city has caught the attention of many. There are 100 Smart Cities as declared by the Urban Development Ministry. The growth of such city has significantly changed the urban scenario in India. There is no universal definition of the smart city as such. A city which sustains economic development and provides a high-quality life can be termed as a smart city. Smarter City uses digital technology and information and communication technologies to better quality and performance thereby interacting more effectively and actively with its citizens. The Smart City includes government services, transport, traffic management, energy, health care, water and waste.
Generally for qualifying to be categorized as a Smart City the following aspects, inter-alia, are taken into consideration: well-planned structural units, better road and transport facility, proximity to the airport / railway / bus terminals, educational and technological institutions, facilities for health care, digital / Wifi connectivity, environmental factors as a whole. The basic objective of a smart city is to improve the living standards and quality of life of citizens.
Let us analyse the factors why one should invest in Smart Cities:
Prospect of Substantial Price Appreciation
Smart cities are considered good options both for investors and buyers. It has been our experience whenever any new project or township is launched; demand for real estate in that area automatically goes up. As a result, prices also undergo major increase. Smart Cities involve a lot of other things like supporting infrastructure projects, the public-private partnership in a number of activities, networking with international experts who could provide and guide for smart city solutions. All these activities are bound to increase the property rates which would be welcome by the investors. But one thing should be kept in mind that the return on the investments would not come in the initial 2-4 years but one has to wait for a reasonable time to fetch a good bonanza.
Raising Standards of Living
As mentioned above one of the basic objectives of a smart city is to improve the standards of living and quality of life of its citizens. This is done through the application of various technologies to solve the urban problems. However, some residents may be apprehensive of investing on the presumption that higher living standards would mean the smart city life costly. Such fears have no basis and should be allayed as the technological interventions will increase efficiency and bring down costs of public utilities. Besides, Government authorities generally provide a subsidy so that livings in these cities are affordable for all and does not cause any hardship
No Free hand for speculative investment
Unlike other upcoming projects in metro cities which witness a phenomenal increase in the prices in the township, there is sufficient restriction on speculative investing by super firms . No such activity is allowed in the smart city as the government has abundantly clear that these cities are specially designed to address the needs of the end users. Another positive aspect is that limitations on speculative investment would ensure that the prices of the property won’t take a downward crash. From this point of view investment in smart cities is a much safer option as compared to other townships.