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Township- Emerging concept of Indian Real Estate


Viewing at the early years of the nineties, the liberalization policy was still in the course of gaining power. Since then, a lot of changes have occurred in the economy. Many of them have been fruitful to the developers, while others may not have been so. The Real Estate market has moved to a completely new arena today as we can see the realty in and around India selling like hot cakes.

Townships are the trends of the future for Indian residential real estate. When we are talking about Incorporated/Integrated townships are the new slogan today and setup for the future when it comes to city development. Since time age-old, the idea of living in the well-planned cities has been practiced and with the evolution of civilization and technology, the very meaning of township has also changed continuously.

What are integrated townships??

Integrated townships are designed as models of a city – a breathing city inside a city. An integrated township is a cluster of residential houses and commercial businesses within a marked area. The housing and business formations enjoy accompanying infrastructure like roads, drainage, schools, hospitals, convenience shopping facilities, water treatment plants, sewage facilities, etc.

These townships usually have lower Floor Area Ratio (FAR) than other residential complexes and have more open spaces. Although 100 acre is usually the minimum required land for integrated townships, the norms are subject to change as per state regulation. The buyers and investors who are looking at townships should certainly establish if the right combination of factors exists before making a purchase commitment.

What we get from an Integrated Township???

Today, in urban cities that are especially in developing countries, the culture of integrated township is emerging very rapidly and this is becoming a new social trend. Most of the apartments have many amenities in it, such as a club house, swimming pools, fitness centers, children play area and more. But, an advanced and wider extension of these amenities gives an environment like a city inside your township. You will have entertainment, commercial, hospitals, residential and also educational institutions in this integrated gated community.

Basically, such integrated townships are constructed aiming the IT sector and IT professionals. Therefore, we can find such gated community system of integrated townships more in cosmopolitan cities like Pune and Bangalore which are the established, yet fastest growing cities from IT perspective. In addition to these benefits, there are also many other advantages that you can get from integrated townships.

Modern Spaces:

Integrated projects are built in the periphery of cities due to availability of large tracts of land. Many states are promoting the concept to ease the pressure on big cities. For example, West Bengal and Rajasthan are easing the minimum land requirement (generally 100 acres). Some states have relaxed development norms as well. Easing of external commercial borrowing norms for integrated townships is also expected to give such projects a boost. Analysts expect more such townships to come up in metros and suburbs over the next few years. Major urban centers and state capitals are also likely to get many such projects. The presence of residential and commercial spaces leads to faster development as the two create demand for each other. As a result, valuations grow faster than in case of stand-alone properties.

Big Attraction:

Township developers are attracting buyers with concepts such as ‘walk-to-work’, eco-friendly environment and large open spaces. Many townships have office, retail and residential spaces. They also feature generous landscaping and serene environment, all of which are effective enticements for buyers. Affordability is another factor that is drawing buyers to these townships. Being located in peripheries of metros, these properties are way cheaper than those in prime locations. A township project offers latest amenities at a relatively low price.

No Free Run:

Townships offer lifestyle advantages, but have certain limitations as well, particularly if you have opted for a residential plot. Though builders market plots by saying that you will have full freedom to build your house the way you want to, this is not the case. Most townships require that the houses follow certain requirements and layouts.

Properties in townships are 10-15% costlier than standalone properties at the same location. Residents might also have to pay a higher maintenance charge. The construction period is also long.

Township projects, being capital-intensive, are developed in phases and completion can take years. Buyers are handed over properties in phases. Some projects might get delayed due to funding or regulatory issues.

Builders’ Pole:

These developments are more profitable for builders as well. The demand for residential, commercial and retail components feed each other. The risks involved in developing township projects are much less and distributed. Developers can even restructure the project in the future depending upon demand. These are a win-win for both developers and buyers. Generating funds can prove to be a long and clumsy process. This is especially true in India, where the real estate sector does not enjoy industry status


Category : Flatons Advisors Blog



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