Property demand influx with the announcement of

SMART CITIES

The NDA, right after it formed government in the center, proposed its plan to develop housing for all by the year 2022. In this line they realized the need to remodel existing urban clusters and develop new urban areas with advanced features to tackle the population immigration. This need gave birth to the concept of Smart Cities.

Rounds of talks and conferences were held to discuss feasibility of Smart Cities in India. After analyzing all the prospects, the Government of India formally announced Smart City Mission in the month of June 2015. It proposed that altogether 100 cities to be selected to be developed as Smart Cities. It also proposed criteria for selection and invited state governments to come up with list of cities for the same.

Aug 27, 2015 : A list of 98 cities

announced by the Ministry of Urban

Development

June 25, 2015: Government

announced the Smart Cities

Mission

June 25, 2015: Government

proposed criteria for selection and invited

lists of cities from respective state

government

Jan 28, 2016: Government

announced names of 20 cities shortlisted

for the 1st phase

May 25, 2016: Government

announced list of 13 cities for the

2nd phase

June 25, 2016: Work in 20 selected

cities in 1st phase started to celebrate anniversary of Smart Cities Mission

Smart City Mission Dateline

First Phase: Bhubaneswar, Pune, Jaipur, Surat, Kochi, Ahmedabad, Jabalpur, Visakhapatnam, Solapur, Davangere, Indore, NDMC, Coimbatore, Kakinada, Belagavi, Udaipur, Guwahati, Chennai, Ludhiana and Bhopal

Second Phase: Lucknow, Warangal, Dharamshala,

Chandigarh, Raipur, New Town-Kolkata, Bhagalpur, Panaji, Port Blair, Imphal,

Ranchi, Agartala and Faridabad

Overall Buzz around SMART CITY

1. The topic is active since year 2014 which picked up in June 2015. Since then the overall conversation volume around smart city is quite high

2. August 2015 has seen the maximum peak with over 4 lakh mentions 3. It again picked up in January 2016 4. A consistency during 2015 and 2016 with an average search of around 2 lakh

mentions per month can be seen

IMPACT ANALYSIS ON PROPERTY DEMAND

POST ANNOUNCEMENT OF SMART CITY MISSION

Ahmedabad, Bhubaneswar, Davangere, Jabalpur, Jaipur, Kochi, Pune, Solapur, Surat, and Visakhapatnam 10 Focused Markets

1 AHMEDABAD

1. The property demand in Ahmedabad is quite consistent in the past 2 years

2. The smart city announcement gave a little boost in the overall property demand in the market (4%-5%)

3. It is largely because of the existing demand in the market

2 BHUBANESWAR

1. The property demand in Bhubaneswar is almost consistent for the past one and half years

2. The smart city announcement has given an extra boost to the overall property demand in the market (11 to 13%)

3 DAVANGERE

1. The property demand in the market is quite consistent in the past 2 year

2. The smart city announcements has given the extra push in the overall property demands (8 to 10%)

4 JABALPUR

1. The property demand in Jabalpur is almost consistent for the past 2 years

2. The smart city announcement gave an extra boost to the overall property demand in the market (8% to 9%)

5 JAIPUR

1. The property demand in Jaipur is quite consistent for the past 2 years

2. The smart city announcement did not make any effect on the overall property searches

3. The major reason for this may be the existing demand in the market

6 KOCHI

1. The property demand in Kochi is quite consistent for the past 2 years

2. The smart city announcement did not affect the overall property demands in the market

7 PUNE

1. Overall the property demand in Pune is quite consistent for the past 2 years

2. As soon as the smart city announcement took place in the month of Jan 2016 one can see a clear growth in the property searches (around 8 to 9%)

8 SOLAPUR

1. The demand in the region is directly proportional to the announcements of smart city and giving boosts to the overall demand

2. 2 major spikes in May 2015 and post Jan 2016 may be seen with a growth of over 30 to 35% which is exceptionally high in current sluggish real estate scenario

9 SURAT

1. Property demand is quite consistent for the past 2 years

2. The smart city announcement of Surat gave a little boost in the overall demand of properties (4% to 5%)

3. The growth is not that steep because of the consistent demand of properties in the market

10 VISAKHAPATNAM

1. The property demand is evenly poised for the last 2 years

2. The smart city announcement has shown some push in the property demands in the location

3. One can see a little growth in past 6 months post smart city announcement but its not that high at the moment

KEY INFERENCES

1. Overall we can clearly see a growth of 8 to 10% in the property demand for the location which got announced under the smart city projects

2. Already popular destinations have seen lesser impact compared to that of the less known cities

3. Places like Solapur or Bhubaneshwar are the major pick of the locations

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