Property demand influx with the announcement of

SMART CITIES

This case study is in continuation with the previous analysis where we evaluated the impact of Smart City announcement of first 10 cities. This document carries the other 9 cities which comes under the smart city plan.

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 and 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

IN SERIES FROM THE LAST CASE STUDY

NDMC, Coimbatore, Kakinada, Belagavi, Udaipur, Guwahati, Chennai, Ludhiana, and Bhopal 9 Focused Markets

1 NDMC

1. The property demand in NDMC dipped a little in the month of the Nov and Dec 2015 and then picked in the month of Jan 2016

2. It became consistent after that 3. Overall demand grew by 11 to

12% but largely in the area of retail space

2 Coimbatore

1. There is a dip in property demand from Nov till Dec 2015 and then it got picked up in the month of Jan 2016

2. It regained it’s consistency thereafter

3. We can’t see any progressive growth by the smart city announcement

1. The property demand in the market is quite consistent for the past one year but has seen a little spikes in the month of May 2016

2. The smart city announcement didn’t help much for the property demand in the market

3 KAKINADA

4 BELAGAVI

1. The property demand was quite consistent till Oct 2015 then dipped till April 2016

2. It regained it early position in the month of May and June 2016

3. The smart city announcement didn’t help the market at all

5 UDAIPUR

1. The property demand was almost consistent till Nov 2015 and then grew in the month of the Dec 2015 and Jan 2016

2. It dipped thereafter and then have started regaining in the month of June’16

3. Smart city announcement didn’t help the market grew

6 GUWAHATI

1. The property demand in the market didn’t see much rise after the announcement of smart city

2. We can clearly see a dip in the month of Nov’15 in the overall property demand search in the market which is still struggling to get its acquired position

3. However, the demand for retail properties has increased by 15 to 18%

7 CHENNAI

1. Overall property demand in the market remained quite stagnant throughout the year

2. Announcement of smart city didn’t help much to attain the overall property demand in the market

8 LUDHIANA

1. We can see a clear spikes in the property searches in the month of Jan 2016 which sustained for the period of next two months only and then it again regained its previous position

9 BHOPAL

1. Overall property demand grew in the month of Jan 2016 and also sustained for the past 6 month

2. Overall demand grew by 6 to 7% 3. Demand growth for residential

property is higher compared to that of the retail properties in the market

KEY INFERENCES

1. Overall, the markets didn’t see much of the growth with the smart city announcement accept Bhopal and Ludhiana

2. It seems like the non popular cities didn’t get the momentum at all with the smart city announcement but it clearly helped the market to maintain its position in this sluggish period

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