Coronavirus impact | Integrated township projects may see a spurt in demand

The National Capital Region (NCR) has the maximum number of integrated townships - 42 projects with approximately 1.33 lakh units

The focus on dispersed offices and flexible workplace policies in the wake of the COVID-19 pandemic is expected to spur housing demand in the peripheries of cities, beyond the city centre hotspots.

This will lead to higher demand for large townships, which currently account for a mere 2 percent total real estate projects in the country.

Top seven cities have just 101 integrated township projects (launched since 2010 till date) with 3.16 lakh housing units; this is nearly 2 percent share of overall projects launched during the period. Of this, 57 projects are largely residential with basic facilities like a small retail shop or a pharmacy, says a report.

The remaining 44 are mixed-use projects with dedicated retail, entertainment, education, commercial, health and residential spaces.

The National Capital Region (NCR) has the maximum number of integrated townships - 42 projects with approximately 1.33 lakh units, followed by the Mumbai Metropolitan Region (MMR) with 17 projects having around 63,500 housing units, it said.

Bengaluru has 10 mega township projects with 35,230 units in all, of which three are mixed-use and the remaining seven are large, well-equipped residential communities.

Hyderabad has nine township projects, of which only one is mixed-use and eight are purely residential. Together, they have more than 21,600 units.

Pune and Kolkata have eight large township projects each, with approximately 19,700 and 27,150 homes respectively. Interestingly, Pune has more mixed-use developments (5) than purely residential townships (3), while Kolkata has two mixed-use developments and six purely residential townships.

Chennai has seven township projects with nearly 16,200 residential units, of which three are mixed-use developments and four are purely residential.

Given the nature of the times, more such projects may be announced. Various government and nodal development agencies have already incorporated various townships-focused changes in their city planning, such as better road connectivity, utilities supply, and sewage.

Some of the more promising areas for future development include Kalyan-Bhiwandi and Boisar in the MMR, Sohna in Gurugram, North Bengaluru, Yamuna Expressway in Greater Noida, Gahunje in Pune, and West Hyderabad, among others.

“Clearly, this is a hugely underserved segment whose underpinning relevance and importance has been emphatically brought to light by the pandemic. During the COVID-19 pandemic, there is a strong rationale for living in integrated townships. These self-sustaining, compact urban ecosystems are now more than just lifestyle upgrades - they provide the kind of controlled environment that makes a big difference during such an outbreak,” said Anuj Puri, chairman, ANAROCK Property Consultants.

Integrated townships began their Indian innings primarily as a lifestyle statement - the conveniences and address value come at an added cost which does not appeal to budget home seekers. The subtle luxury quotient, a function of the surrounding infrastructure rather than in individual properties, resulted in townships catering to a niche rather than to the masses.

Also, very few developers have the expertise and resources to develop integrated townships. As a result, the supply of integrated townships remained restricted even as other formats proliferated.

"Living in such projects also helps work-from-home professionals to maintain optimum productivity while being assured of their and their families' health and safety. Many townships even offer a walk-to-work option," he said.

Apart from the expertise to plan and execute such large projects, integrated townships also require gargantuan investments in capital, land, and other resources. Resultantly, integrated townships will largely remain the purview of Grade A developers, he added.