Real estate in India has had a phenomenal run in the last couple of years, reflecting a strong underlying demand as a result of the robust growth of its economy. However, rapid urbanisation has posed some unique challenges and at the same time presented new opportunities to real estate market players. One such opportunity that has already seen a considerable level of activity in the recent past is the emergence of integrated townships. Such townships are now touted as a new paradigm of town development in India that will help satisfy the growing affluence and aspirations of India?s urban population through a supportive government policy.

These self-contained townships ? that encompass residential, retail and commercial infrastructure within a single geographical entity ? are today at a nascent stage but are soon expected to spread throughout the length and breadth of the country. The townships present an opportunity not just for developers but also for investors to contribute and evolve a new form of urban development.

Integrated townships thrive on the concept of ?walk-to-work?. They usually offer a combination of row houses, villas, bungalows, group housing ? along with the essential urban infrastructure and amenities ? at differential price points to consumers. Commercial development might also form a small part of this entire concept. Such townships take a holistic look at solving the growing needs of the housing sector.

This concept has also become the next business opportunity for domestic and foreign developers. About 20-25 projects exceeding 250 acres of land development are already under various stages of planning and development in the country, of which over half-a-dozen are mega townships spanning an area of 5,000 acres or more. With changes in the FDI policy on township development foreign majors such as Indonesia-based Salim Group, Keppel Land Group of Singapore, Emaar Group of UAE have already committed huge investments through public-private partnerships with state governments, and joint ventures with Indian developers.

Increasing disposable income of the population and their willingness to pay for higher quality infrastructure and facilities holds a promising future for integrated townships. The average annual household income is expected to increase to Rs 1.4 lakh and 2.48 lakh in 2015 and 2025 respectively from Rs 82,000 in 2005. The consumer spending on healthcare, education, recreation, transportation and communication is expected to increase to 48% of the average household income in 2025 from 31% in 2005. Also, a significant portion of the housing demand in India has been contributed by the age group of 19-35 years, and this segment is likely to increase the demand for superior quality urban infrastructure. This is expected to materialise in the form of qualitatively superior housing requirements; where demand for entertainment, leisure, transportation and communication services further augment the need for such planned and organised developments. With such growing affluence, aspirations and exposure, the urban society is surely looking at a new paradigm of town development, representing a new business opportunity.

Even though the concept of integrated townships is not entirely new in India (a fact corroborated by the presence of earlier townships near and around industrial clusters like Chandigarh and Greater Noida in northern India) it is now emerging more as a need than a lifestyle. Besides, catering to the urban population, integrated townships would also open up employment avenues for the local semi-skilled and unskilled workers by employing them for maintenance and upkeep of the projects. This would lead to economic development of the nearby areas.

An example of this is the Alpha International City located at Karnal in Haryana, a 350-acre plotted development that plans to undertake corporate social responsibility to ensure that the benefits of the integrated township project spread to the surrounding villages with an increase in socio-economic development.

Diversity, both spatially and structurally across the geographic horizon has been observed amongst most of these recent integrated township developments. A standardised model for the seemingly young concept is yet to evolve, though the key drivers are either mass housing requirements or demand emanating from SEZ development. Projects like the 1,000-acre Kolkata West International City in West Howrah primarily offers plotted development (a thrust on owning bungalows over flats, hence offering a unique lifestyle).

Another township topology is the 230-acre township developed by Mahindra World City to cater to the residential demands of the huge and increasing workforce employed in the Mahindra SEZ, Chennai.

Some other significant examples of integrated townships in India include the Magarpatta City, in Pune, developed on 400 acres of agricultural land and built on the concept of walk-to-work and walk-to-school that is likely to provide residence to 12,000 families with multiple options. Besides these, amenities to the residents include educational facilities from pre-primary to graduation, shopping centres, restaurants, health clubs, sports complex, 200-bed hospital along with wide roads, water supply and sewerage systems. Another example is that of Dankuni Township, located in West Bengal, which will have one of the largest planned development involving a public-private partnership and would also cater to the needs of the industrial sector. The township spans over 4,840 acres of land wherein 1,872 acres has been reserved for housing and 771 acres for industrial use, which will include greener industries like textile, food processing and engineering and will house a textile SEZ. Besides these, it would also provide various amenities, which are being provided by other integrated townships.

Globally, such exclusive townships come in varied forms and are usually attached to some economic nucleus. ?Industrial parks or complexes,? similar to integrated townships have been seen in China, Singapore and South East Asia, primarily arising out of the housing needs to accommodate the huge tertiary workforce of the numerous technological parks, IT complexes or even SEZs. Most of these integrated townships have grown around a nucleus of high-tech industries with a much higher land use allocation for industrial land use over the residential component. For instance, the 17,300 acres Suzhou Industrial Township in Singapore, is supported by housing, community, recreational and educational facilities with different functional areas such as an IT Park, Export Processing Zone, International Science Park, Education District and a Modern Logistics Centre.

In the UK and the USA, this concept is present as ?planned mixed-use? communities that have been integrating first-rate infrastructure with superior self-contained mixed-use planning. One such characteristically different development is the Hampton?s Township in Peterborough with 5,200 dwelling units.

Unlike the global scenario where the residential component of the integrated townships emerges as a result of commercial activities, in India, the concept is more inclined towards catering to the residential needs of the population, and commercial forms a small portion of the pie. Integrated township developments are being thought of across India to cater to the economic and social needs of the population in the light of the shortcomings in the existing infrastructure. This provides a solution to the ever-growing living needs and business opportunity as well and this area would certainly see a lot more action in the near future. Finally, such a solution provides a lucrative opportunity to developers and investors to grow and spread this novel form of urban development.