Tag Archives: A Shankar JLL

6 reasons why Kochi will be India’s next real estate hotspot

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Bottom Line: Kochi expects investments of Rs. 2,076 crore; sustainable real estate growth assured

A Shankar JLL, India real estate news, Indian realty news, Indian property market, Track2Media, Track2RealtyKochi hits a six to become the next highly preferred real estate destination in India. All potential drivers such as IT development for employment generation, Metro rail for intra-city connectivity, the Smart City tag for basic infrastructure, port-based development for industry and commercial growth, airport terminal for international connectivity and foreign investment and tourism for the hospitality industry are emphasized in Kochi.

This will ultimately boosts demand for housing and make it one of the next highly-preferred real estate destinations in India. The 6 reasons why this will happen shortly:

1. Inclusion in the top 20 Smart Cities:

Recently, the Ministry of Urban Development, Government of India identified the top 20 candidates under the Smart City mission initiative through a competitive selection process. Kochi ranks 5th and expects an investment of Rs. 2,076 crore for pan city solutions and area-based development.

E-Governance and water management are focus areas as part of pan city solutions which will help Kochi to access improved and planned infrastructure with assured water and power supply, sanitation and solid waste management, efficient urban mobility and public transport, IT connectivity, etc.

Kochi-Mattancherry-Central City, which is selected as the area for development, will witness intense development in the coming years. Numerous developers are trying to acquire land for real estate development in and around this area. The ‘Smart City’ tag is expected to boost prices exponentially.

2. The first Indian Tier-II city to a propose Metro Rail:

Metro rail connectivity in Kochi is under various stages of construction and is expected to be operational by 2017. In Phase I, the Kochi Metro Rail Corporation has proposed an elevated route spanning approximately 25.25 km from Aluva to Pettah. Once completed, the metro will improve connectivity and reduce travel time from Aluva to the key micro-markets of Kochi. Real estate will be greatly influenced once the metro becomes operational.

Areas like Companypady, Ambattukavu, Kalamassery, Edapally, Palarivatom, Ernakulam South, Elamkulam, Vytilla, Panampilly Nagar and Kadavanthara will be the main beneficiaries and some of them have already started to witness increased development.

The future expansion of the metro will also benefit areas like Menaka, Kakkanad and West Kochi. Metro rail stations exert influence up to a buffer of 1 km radius, with maximum influence in the areas within a 500 m radius. Land prices along metro rail corridors have increased by 10%-15% after announcement, and are expected to increase further after operations.

3. New international airport terminal to cater growing demand:

Cochin International Airport Ltd (CIAL) is constructing a Rs. 1,100 crore international terminal with a built-up space of 15,00,000 sq ft. It is designed to handle 4,000 passengers per hour and will be commissioned by 2016. Once operational, the new international terminal will have a very positive economic impact and uplift the real estate market in the whole region.

The catchment will witness development of new retail and commercial spaces along with a good supply of residential and hospitality developments to cater to the increasing demand.

The increased international connectivity will also pave the way for global companies and cargo-based businesses to deploy and expand operations nearby. The completion of the international terminal, along an operational metro, will give significantly boost the city’s real estate market – and the catchment itself is expected to witness 15-20% rise in property prices.

4. Venue for one of two submarine cable landings in India:

Kochi is one of the venues for ‘SEA-ME-WE-3’ (South-East Asia – Middle East – Western Europe 3) and ‘SAFE’ submarine cable landings, and is the second Indian location along with Mumbai to have two submarine cable landings. This fact highlights Kochi as an important destination for IT enabled services. Presently, the Government of Kochi is keen on developing IT/ITeS, as the entire Kerala state is promoting this sector heavily.

The major thrust on IT/ITeS development will eventually boost real estate development in the city, as it creates demand for residential properties, Grade A office spaces and retail developments.

5. Home to India’s first global hub terminal:

Kochi is among India’s leading cities for strong port infrastructure and has the largest (and India’s first) global hub terminal – the International Container Transshipment Terminal (ICTT) at Vallarpadam. This makes Kochi the premier port gateway to South India. Warehouses and other port-based industrial developments will see growth in these areas and lead to vastly increased port-related activities.

6. Continued tourism growth:

Kochi is known for its high heritage value, and contributes significantly to Kerala’s tourism industry. It sees an annual tourism influx that equals about four times its population, of which 14% accounts for foreign tourists, and reflects an annual increase of about 6%. The city’s vision of transforming itself into a tourist hub paves the way for steadily increasing demand for the hospitality sector and its allied industries.

In short, Kochi – which was earlier struggling to recover from an oversupply scenario – will see a massive revival due to creation of demand from these initiatives. Sustainable growth in real estate prices is now assured in the city, and this has incited new interests from numerous real estate developers from all over India who are keen to launch residential, commercial and hospitality projects there.

By: A. Shankar, National Director & Head of Operations – Strategic Consulting, JLL India

 

10 things citizens expect from India’s 20 smart cities

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The Smart City Proposals and Vision of the top 20 cities clearly focus on what citizens want, and the various issues prevailing in most of the cities. 

A Shankar JLL, India real estate news, Indian realty news, Indian property market, Track2Media, Track2RealtyThe buzzword ‘Smart Cities’ has gained a lot more meaning now after the selection of the 20 top cities as Smart Cities out of a total of 98 through a competitive process of selection.

It bears mentioning that the selection process for the ambitious 100 Smart Cities mission is the first of its kind in India. Also, the selection timelines were met without any extensions. This is quite significant, since most Government-related submissions usually tend to get extended for various and sometimes no reasons.

This fact clearly evidences firm intent and interest of the involved city managers and citizens to have their cities included in the Smart Cities program. All cities participated with proposals to develop better infrastructure in terms of assured water and power supply, sanitation and solid waste management, efficient urban mobility and public transport, IT connectivity, e-governance – and, most importantly, citizen participation.

In the Smart Cities selection process, Bhubaneswar tops the list, followed by Pune and Jaipur in the second and third places. JLL India’s Strategic Consulting team was instrumental in preparing the proposals for two of the 20 selected cities, namely Bhubaneshwar and Chennai. Over the next two years, the Government will identify 40 and 38 more cities respectively through another round of competitive selection.

India’s Smart City Mission marks the country’s next phase of urbanisation, and will contribute to the growth of the nation in a big way. The Smart City Proposals and Vision of the top 20 cities clearly focus on what citizens want, and the various issues prevailing in most of the cities.

From the initial stage till implementation, one underlying question will dominate – what can citizens expect from these Smart Cities? The following deliverables are part of most of the Smart City proposals:

1. Access to better public transport

Growing urbanisation has increased the number of private vehicles on public roads, leading to massive traffic congestion in almost all Indian cities. All selected Smart Cities have undertaken to develop or strengthen their public transportation networks to encourage their increased use and thereby reduce the use of private vehicles. The Smart Cities propose to provide easy access to public transport and enhance mobility by use of ICT (Information & Communications Technology) solutions. Public transport will aid faster, easier and cheaper commuting, and the modal shift from private to public transport will be instrumental in significantly mitigating inner city congestion.

Of the 20 selected Smart Cities, the ones which are focusing on ICT solutions for urban mobility are Pune, Jaipur, Surat, Davanagere, Indore, Belagavi, Udaipur and Chennai.

2. Putting pedestrians first

‘Pedestrianisation’ and Non-Motorised Transport are integral factors in the proposed ‘smartening up’ programme of cities like Pune, Belagavi, Udaipur and Chennai, the latter also being the first city to implement a Non-Motorised Transport Policy in India.

Citizens will enjoy wide footpaths with public seating at regular intervals and easy mobility for the differently-abled. Car-free Sundays will make streets available for citizens to interact and engage in street activities.

Since pedestrians are the victims in a large number of major road accidents, on-street parking will be managed and organized to increase their safety. Also, cycle sharing and feeder systems will help citizens achieve better Last Mile connectivity, which is the major hurdle for the successful functioning of public transport.

Citizens will have the option to use cycles to commute to their destinations from the public transport mode. 

3. Availability of adequate parking

Intelligent parking management, a part of many of the winning Smart City proposals, will help citizens find parking with ease and even pre-book their parking slot along with online payment modes. On-street parking management will be a reliable revenue source for the cities, and can be used to further strengthen their public transportation systems.

Managing on-street parking will reduce traffic congestion, increase the effective carriageway width available for vehicles and reduce fuel consumption and pollution, among other benefits. The cities which have identified this as a prime winning proposition in the Smart City contest are Bhubaneshwar, Davanagere, Indore, Udaipur, Guwahati and Chennai. 

4. Reduced traffic congestion

Intelligent Traffic Management Systems to manage city traffic via various ICT solutions have been considered by Bhubaneshwar, Surat, Ahmedabad, Davanagere, Indore, Udaipur and Chennai.

Citizens will enjoy easier transport modes and routes, and also have smart phone access to estimated travel time to their destination by Passenger Real Time information on arrival of buses, trains and e-rickshaws.

Traffic Signalling Prioritization of BRTS buses and video surveillance will further ensure safety and prevent traffic violations. 

5. Safer living

Safety of residents is another aspect that has been assured in Coimbatore, Kakinada, Udaipur, Guwahati and Chennai. Initiatives such as LED street lighting will boost pedestrians’ safety, as will video surveillance via a Common Control Centre – which will simultaneously help reduce traffic violations and ensure efficient on-street parking management.

6. Hassle-free civic services

Another big initiative that the identified Smart Cities are targeting is e-governance, meaning a single platform from where citizens can access all and any details and also help them get all services done.

Most importantly, this will enable citizens’ engagement in all aspects of city functioning, as the data sharing or transparency between government and citizens will act as a forum for citizens to understand exactly how their city is functioning.

Some of the smart solutions such as integrated fare cards, smart unified city governance, ‘one city one website’, GIS (Geographic Information System) mapping and Wi-Fi hotspots have been considered by Bhubaneshwar, Kochi, Ahmedabad, Vishakapatnam, Davanagere, New Delhi Municipal Council (NDMC), Belagavi, Ludhiana and Bhopal.

7. Safety against natural disasters

Natural disasters are, almost by definition, impossible to prevent; however human interventions in terms of precautionary measures can help in minimising losses to life and property to a great extent.

The coastal areas are often badly affected by cyclones and flooding, so cities like Chennai and Vishakhapatnam will concentrate on ICT-based disaster management techniques like sensors, weather forecasts, zero flooding zones, storm water management, etc. to make them safer places to live in.

8. Neighbourhood sanitation

Solid Waste Management through smart solutions for clean roads and a healthy environment is considered as an important factor by cities of Jaipur, Jabalpur, Indore and Kakinada. Recycling of waste will produce renewable energy, ensure safe disposal of solid waste, prevent soil and environmental pollution and reduce depletion of resources.

9. Easy access to all basic infrastructure 

Smart Cities aim to maintain basic infrastructure with best quality and 100% efficiency. The efficiency of the utilities in our cities has been an elusive factor till date, thanks to inadequate monitoring and responsiveness. Electricity, sewerage, storm water drainage and water supply will be strengthened in the Smart Cities with a smart layer of ICT applications.

Citizens in Pune, Kochi, Solapur, NDMC, Kakinada and Belagavi will benefit from ICT-enabled initiatives such as zero loss monitored by Smart Meters, LED street lighting, 24×7 water supply by source augmentation, waste water recycling and sensors to detect sewer system leakages.

Pune is focusing on healthcare for low income households and providing training in digital literacy, and Solapur is incentivising conservation of water. Chennai aims to create water sources using desalination plants and recycling water to use for various purposes.

10. City beautification

All identified Smart Cities are focusing on developing more ‘lung spaces’ within the city. Smart components like cycling, street furniture, jogging tracks, designated spaces hawkers, etc. will enhance the aesthetics of the city.

Green spaces will get a new dimension with new soft and hard landscapes equipped with Wi-Fi hotspots, providing ideal areas for citizens to relax, exercise and interact. All this also plays a major role in creating a healthy and a sustained environment.

In short…

Smart City citizens stand to benefit significantly if the smart cities initiatives are implemented effectively. Implementation through the formation of SPVs is integral to success of these proposals and will determine the success of Smart Cities Mission as a whole; failure to consider this route seriously can prove to be a major stumbling block.

Smart City citizens can expect their city authorities and the involved nodal agencies to work efficiently towards finalizing and implementing the committed proposals, keeping them involved through the citizen’s engagement process, and to see their respective cities compete successfully with others in attracting investments.

By: A. Shankar, National Director – Strategic Consulting & Head – Urban Solutions, JLL India

Managing parking issues with automated parking solutions

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By: A. Shankar, Head–Strategic Consulting (Chennai|Coimbatore|Colombo), JLL India

A Shankar JLL, India real estate news, Indian realty news, Indian property market, Track2Media, Track2RealtyTrack2Realty: India, the second most populated country in the world houses more than 40 million vehicles and is the only country which saw a growing car sales even during the recession and recorded the highest sales volume during 2009 and 2010.

Since it has a strong domestic market, the growth is expected to be sustainable and increase over the next few years since India’s car per capita ratio is currently among the lowest in the world’s top 10 auto markets.

However infrastructure available for the vehicles like roads parking spaces have been a challenge in most the Indian cities.

Indian cities face severe problem of congestion due to runway growth of personalized vehicles. The traffic management in the many cities is marked by introduction of a series of one-way traffic system.

The one-way traffic system has, however, implications on pedestrian safety and fuel consumption. One-way traffic is generally desirable when there are complementary roads and the additional traveling distance is not more than 300m as per IRC. Hence whenever such systems are introduced, the interests of public transport modes and pedestrians are duly addressed.

Demand for parking in the CBD areas of Indian cities is twice the supply. Acute shortage of parking supply is witnessed in commercial areas and indiscriminate parking impedes free flow of traffic and cause accidents.

Automatic multi-storey car parks provide lower building cost per parking slot, as they typically require less building volume and less ground area than a conventional facility with the same capacity.

However, the cost of the mechanical equipment within the building that is needed to transport cars internally needs to be added to the lower building cost to determine the total costs. Other costs are usually lower too, for example there is no need for an energy intensive ventilating system, since cars are not driven inside and human cashiers or security personnel may not be needed.

Automated car parks rely on similar technology that is used for mechanical handling and document retrieval. The driver leaves the car in an entrance module. It is then transported to a parking slot by a robot trolley. For the driver, the process of parking is reduced to leaving the car inside an entrance module.