Integrated townships: Built to deliver comfort & returns

Kaizad HateriaRustomjee

A decent home in a good locality is becoming increasingly difficult to find in metropolitan cities of India. Lack of space is leading cities to expand vertically and despite many new and existing residential projects, people face an uphill task finding their dream home. Most often buyers have to compromise on either the budget or the location. Not only do they settle for less in terms of choice but also accumulate risk on their investment. However, properties in townships offer far better returns than standalone properties for both consumers as well as investors.

Integrated townships – need of hour

Today, there is barely any doubt that integrated townships are the most significant format for city development going forward. Tier 1 cities and metropolitan cities are under immense pressure of urbanization. According to the ‘White Paper – Indian Housing Industry’ by research and consultancy firm RNCOS, it is expected that the shortage of Urban housing across the country will reach to 34.1 million units by 2022.This demand can be met most efficiently by building sustainable integrated townships that not just provide residential and commercial spaces but also elevate the quality of life for the residents.

With the urban population of India estimated to grow to 590 million by 2030, the pressure on housing shortage is steadily increasing. As per reports, 700-900 million square feet will need to be built every year till 2030 to meet the estimated shortage. While both the cities and realty prices are expanding vertically, housing demands in cities like Mumbai are also witnessing an evolution. Home buyers are not only looking to buy a house, but a lifestyle. The search for a good house and supporting infrastructure in close proximity has pushed existing city limits outwards. Area like Thane, Virar, Powai in Mumbai are being built into cities of tomorrow with small satellite townships coming up in growth corridors of Mumbai that cater to every requirement of residents.

Quality solution to urban challenges

Sprawling over large areas, these integrated townships are self-contained. Offices, schools, healthcare, outdoor and leisure facilities, hotels, retail outlets, supermarkets, restaurants, and cafés are at walking distance from luxuriously serviced residential areas, guarded by round the clock security. They are set in green and serene environments which aides in catering to the well-being of residents. It is a great package deal of affordability, comfort, convenience, social integration, infrastructure and contemporary lifestyle.

With commercial and residential spaces in close proximity, townships are offering a good work-life balance to residents. The ‘walk-to-work’ culture enabled by townships mitigates the pressures of long commute to and from work, unending traffic jams and peak hour rush, thus adding valuable time to a person’s daily life, not to mention the money saved in transport. The serene environment gives residents a feeling of living in the countryside, with all the benefits of the city. It provides a sense of comfort, security, convenience and above all, a sophisticated urban living experience.

Infrastructure projects of roads, power, water, drainage and sewage which are being pushed by the government add new zest to the concept. Steadily increasing residential and commercial demand in the area has made townships a wise investment option.

Capital appreciation

Property investments in satellite townships coming up in off city limits like Thane, Virar, Powai are witnessing a rapid appreciation. Spaces that sold in Thane for Rs.3000 per square feet five years ago are now sold at Rs. 12,000 per square feet. Similarly a 1 BHK house in Virar appreciated in value from Rs. 8.65 lakh to Rs. 32 lakh within the same time period.

Residential property in a township has seen an appreciation 25% more in value than stand-alone bungalow in the same over the same time period. People are willing to pay that premium in a township for the accessibility of the property, amenities and convenience a township provides and the brand name associated with the project.

Better rental yields

While long term investment benefits of buying a house in a township is becoming clearer to people, income from rentals is also steadily rising in these areas. Increasing number of people are opting to rent a house in a township. The rents charged for a house in a township is 35% more as compared to the rent garnered by a stand-alone bungalow in the same area.