WHAT EXACTLY TOWNSHIP MEAN?
Although the Township format has been around for a while but it is still not an incorporated one across the country. There is no common definition, but it is like that anything from a development of 25 acres to 2,500 acres is being plugged as a township. But, individual state governments and planning authorities have stated some of the key fundamentals for a project to be called a township. In Gurgaon (Haryana), Maharashtra and Bengaluru, the minimum area for a township project should be 100 acres. Also, there are some other norms set by government like minimum road width, percentage of land usage, etc.
Depending on size, a township project is projected to provide certain social infrastructure, significant amenities and ancillary facilities as well. For example, all townships must provide schools and basic medical care facilities and also townships must provide a community room and library, but the mega townships need to offer a recreational club.
Buying a house in an integrated self-sustaining township can minimize these risks. What is self-sustaining integrated township? Projects sprawled over more than 1,000 acres can, be called “integrated townships “ being self- sustaining in nature it reduces risk at max level like spanning hundreds of acres which include independent houses, apartments, offices, shopping malls, cinemas, schools, hospitals and all other facilities that are there in developed urban centers.
According to me, township is that complete space where you get the right amalgam of commercial and residential projects presenting up-to-date lifestyle with all modern features where one can enjoy their everlasting stay with complete grace of life. Such kind of townships actually amends the lifestyle and gives high-class way of living life.
In a nutshell, townships are the best investment choice that you can hold anytime when you are in a position to proceed.
CONCEPT OF TOWNSHIP:
Mumbai, Gurgaon and other NCR zones are growing economic hubs which is facing maximum inward migration which is the main contributor of this economic growth. This is somewhere leading to insufficiency of resources, particularly land, forcing the cities to inflate.
I personally consider integrated townships as a solution to the cities’ congestion and planned expansion. Integrated townships can be called as mini cities, on the peripheries of big cities and offer essential facilities like housing, education, work place, shopping, healthcare etc. Gurgaon is one of the major areas where integrated township is becoming exceptionally widespread and well-accepted because of this people are coming from far distance.
Integrated townships are basically preferred by individuals searching out for a dwelling place and for the corporate firms looking to open branches to expand their businesses and this could be the best option for first time home buyers. The real estate in the city is the concept of integrated township. In the last couple of years, rapid recognition of the concept, most of the projects are being presented to prospective buyers as integrated townships.
But the key question happens to be as to what are the key features that get it joined that way of integrated township?
Interestingly, to qualify and to stand that kind of rating, ideally a project has to be self-sustained in many aspects and should be able to address the basic needs of residents and come up with infrastructure on education, health care and shopping. For all necessary facilities to come together and integrate into a township, the project site should be spread over around 20 acres.
“With less than that, can you develop an integrated township?” I guess no!
What all advantages does a mega township offers?
• MODERN SPACES
Integrated projects are basically built in the periphery of cities due to availability of large tracts of land. Many states are promoting this concept to ease the compression on big cities. For example, West Bengal and Rajasthan are easing the minimum land requirement (normally 100 acres). Easing of external plagiarizing norms for integrated townships will be giving a boost to this project.
Anuj Puri, chairman and country head, Jones Lang LaSalle (JLL) India has said that this concept will now allow people to sidestep infrastructure and improves their lives. In large cities it will be a great solution. He has also said that due to this township the demand for properties has increased rapidly where location is an advantage.
Also, the occurrence of residential and commercial spaces leads to faster development as the two create demand for each other. As a result, valuations grow faster than in case of stand-alone properties.
• BIG ATTRACTION
Township has become big attraction for developers and are attracting buyers with concepts such as 'walk to-work', eco-friendly environment and large open spaces. "Many townships also offer office, retail and residential spaces featuring plentiful landscaping and tranquil environment, all of which are effective enticements for buyers," says Puri.
Developers find townships attractive as their risks are reduced by inclusion of commercial and residential properties in the same project.
"A township project offers latest amenities at a relatively low price," says Kruti Jain, director, Kumar Urban Development, a Pune-based real estate developer. This is like a key point for any investor that he is getting high end facilities under one roof that too under amazing price.
• BUILDERS' PERCH
These developments are not only profitable for investors but for builders as well. The demand for residential, commercial and retail components feed each other.
"The risks involved in developing township projects are much less and distributed. Developers can even restructure their projects in the future depending upon demand. These are a win-win for both developers and buyers," says Jain of Kumar Urban Development.
Townships got shape due to government incentives and problems related to land acquisition have reduced and the long list of approvals that are required, slow the pace of progress, and securing funds is also cited as a problem for developers.
SHOULD YOU INVEST?
There is no question that you need to think twice before investing in townships.
One of the biggest advantages of investing in large integrated townships is that the cost of entry is low and they are approaching up at a distance from the city core which gives the developer an advantage of lower land cost. Also, since many integrated townships are still at the construction stage, developers do not have a model base to make their sale on. That tilts the market in favor of buyers.
Due to the rising demand for township homes and the change in customers views these has become the better option for investment. Prakash Gurbaxani, CEO QVC Realty has said that since townships are self-sustaining they are less vulnerable to get volatile in market.
Importantly townships are focusing on walk-to-work and walk-to- school and they are also trying to get townships close to IT hub and due to this the township idea are successful.
Basically the bottom line is escalating market which can look forward township the best for investment.
WHAT LIES AHEAD
The way supply is increasing and the struggle in the market is getting hot, developers are changing their way of selling township projects. For instance, QVC Realty is taking feedback from potential customers even before launching their project in order to design a product suited to meet their expectations.
The soaring real estate prices and the better lifestyle promises are the two key factors attracting customers towards townships. Much more facilities are added like pre-paid electricity bills, in-house water treatment plants and direct connectivity to major roads are the eye catching parts.
Foreign investments by foreign developers’ interest have boosted this integrated townships. Recent Cushman and Wakefield reports have seen the townships with highest attention and the reports says that it is also viewed as low- risk investment due to the great infrastructure and excellent location.
CONCLUSION:
Along with economic growth over the years, India’s middle-income population has expanded. Coupled with rapid urbanization and rising affluence, they have created a huge market potential for residential townships. Housing preferences are increasingly veering for the general population in today's fast-paced lifestyle and professionally-managed townships that embrace the surroundings with complete security.
Up-to-date and sensibly priced homes, a good road and convenient public transportation system, various amenities within easy reach, security, Green, Spotless and favorable living environment are the main attractions of well-planned integrated townships.
And these developments are linked with the government’s vision of ‘Housing for all by 2022’, Smart Cities Mission, Atal Mission for Rejuvenation and Urban Transformation (AMRUT) the intended target can be achieved sooner with this township.
