By: Bhavna Modgil
Track2Realty Exclusive
Integrated townships can reduce the burden on infrastructure and provide a fulfilling lifestyle for buyers, at a much reduced cost all round. Gulam Zia, National Director – Research & Advisory Services, Knight Frank India points out, “Of late, the planning authorities and government bodies have realised the importance of integrated townships and are giving special concessions for creation of such townships.
Maharashtra and Karnataka are front runner states, both having formed a policy on integrated townships. According to the policy, the minimum area needs to be 100 acres in both Maharashtra and Karnataka. In Maharashtra, the land conversion will be automatic, there will be a 50 per cent waiver on stamp duty, extra FSI, no height restriction and guaranteed water and power. Here, developers can even buy agricultural land (minimum 100 acres though) and apply.
What has enthused developers and investors alike is the fact that 100 per cent FDI is allowed by the Centre in integrated townships. Lured by the lucrative returns on investments, several foreign majors like the Indonesia-based Salim Group and the Singapore-based Keppel Land Group are making mega-dollar investments. Capital Land, GE, GIC, Israeli Fishman Group, Vornado as well as many hedge funds are investing in different Indian states.
Such townships also offer the prospect of higher appreciation, as these projects adhere to a pre-set development plan with regard to open spaces, social amenities and common areas. This means the overall value of the location does not take a hit because of unrestricted developments that may crop up later.
In the past though there had townships such as Indirapuram or even Navi Mumbai, with multiple developers having stake, not living up to the expectations. Projects like Crossing Republic failed to offer any solution and instead raised many questions. Experts believe when a consortium of developers attempts it there is a tendency to disagree on a whole swathe of issues which, if not settled in a timely and progressive manner, can lead to the stalling of a large project practically at any stage.
It is generally believed that individual developers have the benefit of being able to take unilateral decisions at all stages of the project, which would indicate that-at least for now-a large township would have better chances of seeing completion if undertaken by a single entity rather than multiple ones.
…to be continued
