Realty needs to be future ready

Chennai

The growth of cities is going to further influence the country’s built environment, while technology, demographics and environmental issues will become its new value drivers. Already, workplaces are becoming more modern and open, in keeping with the aspirations of the millennial working population.

Residential – making a comeback

•  Number of households to touch 386 million by 2030, almost 40% of Indians will be urban residents
•  By 2030, residential real estate has the potential to almost double from the current stock of 1.5 million units in key cities 
•  Affordable housing to remain the dominant segment; total of 10 million PMAY (U) units to be delivered by 2020 itself

THE RETAIL OPPORTUNITY

•  India to emerge as the third largest consumer market behind US and China
•  Retail shopping centre stock to cross 120 mn sft by 2030

OFFICE - MAINTAINING THE MOMENTUM

•  Flexible to become mainstream – comprise 8-10% of the total office stock
•  Close integration of start-ups and conglomerates for delivering tech-enhanced services; India to lead as a unicorn destination 7,200 – 7,700 start-ups incepted during 2013-18; start-up base growing by 12-15% on an annual basis
•  Demand for tech professionals, post incorporation of automation and other tech platforms, is likely to grow by 129% by 2030 in India

LOGISTICS – THE UNTAPPED SECTOR

• Warehousing demand will strengthen; India’s manufacturing sector to grow at a CAGR of 6.3% between 2016 and 2025; second fastest in the world
• Warehousing stock to touch 500 mn sft by 2030; share of grade A stock to witness continuous increase 
• Cold storage expected to add an incremental of ~10 million tonnes by 2023; potential to almost double from existing capacity of 37-39 MT

NAMMA CHENNAI’s  Development focus

•  Affordable housing
•  Master planning for sustainable and optimised utilisation of the scarce land
• Target sectors and policy development
•  Tech & automobile (under Information Communication Technology (ICT) policy, 2018)
•  Tamil Nadu Aerospace & Defence Industrial Policy 2019, Tamil Nadu Solar Policy 2019 and Tamil Nadu Food Processing Policy 2019
• City Growth Pattern / Satellite Cities
•  Infrastructure development in the suburbs such as GST road and OMR road to reduce population pressure on central city
•  Planned projects include Kilambakkam bus terminus, a greenfield airport and three corridors of metro rail phase II which cover about 107.55 km 
• Suburban development
•  Residential and commercial growth to continue across southern (GST road, OMR road) and western (MPH road) parts of the city

COIMBATORE

Smart road features include high quality walking and cycling facilities, improved access to public transport, organised parking and vending zones as well as streamlined junctions

• However, this urban success story demands a closer look as it is putting enormous pressure on the already strained natural resources:
•  Maintaining air and water quality is fast becoming the biggest urban problem. Airborne particulate emissions are dangerously high. As of 2018, 7 of the world’s 10 most polluted cities are now in India. For sustainable urban prosperity, cities will have to be more liveable places, with clean air and water, reliable utilities, and green spaces
•  Municipalities are struggling with waste management and looking for newer, more effective models to deal with the challenge

WHERE DOES THE CONSTRUCTION INDUSTRY FIT IN?

Realty contributed about 6-7% to the GDP in 2017 – expected to rise to about 13% by 2025. By 2030, realty may touch $ 1 trillion, becoming the third largest globally. Between now and 2050, rapid social and economic changes will significantly increase India’s population and the size of its cities, creating a huge demand for the construction industry. India will soon have one of the largest shares of the world’s building stock, consisting mainly of new developments

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