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New large urban centres needed: JLL India-CREDAI report
Nov '17
Courtesy: JLL/Shutterstock
Courtesy: JLL/Shutterstock
With a rise in urban areas and pressure on urban infrastructure, there is an urgent need to create new, large urban centres, says a report titled ‘The Dawn of India’s Future Cities,’ released today at the New India Summit in Nagpur by global real estate consultants JLL India and the Confederation of Real Estate Developers Association of India (CREDAI).

Based on key parameters like socio-economic momentum, enhanced connectivity Infrastructure and high-value indicators, the report analyses urbanization and migration trends to create a case for developing Tier-II , III and IV cities and shortlists 45 potential mega-cities, including Nagpur, Lucknow, Jaipur, Kochi and Bhopal. It also identifies areas of opportunities for developers.

Due to challenges like increasing population, lack of physical and social infrastructure, environmental and regulatory requirements, declining tax bases and budgets and increased costs, big cities have to learn smarter ways to tackle the complex problems of pollution, overcrowding, water scarcity, inadequate housing, high unemployment, resource management and rising crime, says the report.

Various central and state government initiatives are under way at present to de-clutter metros by creating new economic engines of growth, according to a JLL press release.

India’s urban population is 33.5 per cent of the total population and contributes over 60 per cent of the country’s GDP that is projected to rise to 75 per cent by 2030. This rapid pace of urbanization warrants the need for alternate modes to increase efficiency and raise people’s standard of living. Sound infrastructure in big cities is crumbling under pressure from internal migrants, the report says.

According to the 2011 Census 2011, 45.36 crore Indians —37 per cent of the total population —are internal migrants, employment and marriage being the two most important reasons. That figure was 31.45 crore in 2001.

Districts with high net out-migration are located in the economically underachieving states, such as Uttar Pradesh and Bihar, both of which together accounted for half of the total out-migrants, according to the Economic Survey 2017.

The Delhi region accounted for more than half of the in-migration in 2015-16, with the other major net in-migration states being Maharashtra, Goa and Tamil Nadu.

Therefore, creating new cities with more economic activity is key to retain talent and prevent migration, the report says.

The real estate and infrastructure sector will become a key agent of change, said Ramesh Nair, JLL India CEO and country head.

Established in 1999, CREDAI is the apex body for private real estate developers in India, representing 11,940 developers through 23 states and 171 city chapters across the country. (DS)

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