Integrated Townships – Weathering the Covid-19 Siege

During a pandemic like COVID-19, there is a strong rationale for living in integrated townships. These self-sustaining, compact urban ecosystems are now more than just lifestyle upgrades – they provide the kind of controlled environment that makes a big difference during such an outbreak. Gated communities offer security, but integrated townships let residents get through the prolonged siege-like situation of a pandemic with a much lower impact on the quality of life.

“Going forward, dispersed offices and flexible workplace policies around WFH will spur housing demand on city peripheries, beyond the city-centre hotspots. This will lead to higher demand for large township developments which, because of their massive size, have been developed on the peripheries. However, they account for a mere 2% of all housing supply since 2010, so their numbers are currently inadequate to meet the future demand.”

Constrained supply

Integrated townships began their Indian innings primarily as a lifestyle statement – the conveniences and address value come at an added cost which does not appeal to budget home seekers. The subtle luxury quotient, a function of the surrounding infrastructure rather than in individual properties, resulted in townships catering to a niche rather than to the masses. Also, very few developers have the expertise and resources to deploy integrated townships. As a result, the supply of integrated townships remained restricted even as other formats proliferated.

As on date, the top seven cities have just over 101 township projects (launched since 2010 till date), accounting for around 3.16 lakh housing units. (Besides mixed-use developments, townships with more than 2,000 housing units are also considered).

This is only a minuscule 2% share of overall housing projects launched during this period. Clearly, this is a hugely under-served segment whose underpinning relevance and importance has been emphatically brought to light by the COVID-19 pandemic.

Out of the 101 projects, nearly 57 are large purely residential projects with some necessary facilities like a retail shop, pharmacy, salon and some form of entertainment. The remaining 44 are full-fledged mixed-use developments with dedicated retail, entertainment, education, commercial, health and residential spaces. NCR and MMR have the highest saturation of townships.

“Beyond superior conveniences and security, townships offer a sense of community which is extremely important in times like the coronavirus pandemic. Living in such projects also helps work-from-home professionals to maintain optimum productivity while being assured of their and their families’ health and safety. Many townships even offer a walk-to-work option.”

Apart from the expertise to plan and execute such large projects, integrated townships also require gargantuan investments in capital, land and other resources. Resultantly, integrated townships will largely remain the purview of Grade A developers.

Integrated township supply (Completed & Ongoing)

  • NCR – 42 township projects with approx. 1.33 lakh residential units. Twenty-two of these (with 55,000 units) are mixed-use developments; the remaining 20 projects are exclusively residential with over 78,000 units.
  • MMR – 17 township projects, of which eight are mixed-use and nine exclusively residential. Together, they account for over 63,500 homes.
  • Bangalore – 10 mega-township projects with 35,230 units in all, of which three are mixed-use and the remaining seven are large, well-equipped residential communities.
  • Hyderabad – Nine township projects, of which only one is mixed-use and eight are purely residential. Together, they have more than 21,600 units.
  • Pune and Kolkata – Eight large township projects each, with approx. 19,700 and 27,150 homes respectively. Interestingly, Pune has more mixed-use developments (5) than purely residential townships (3) while Kolkata has two mixed-use developments and six purely residential townships.
  • Chennai – Seven township projects with nearly 16,200 residential units, of which three are mixed-use developments and four are purely residential.

The USPs

During the COVID-19 pandemic, the most critical features of townships probably are their considerable distance from mid-city infection hot zones and their superior security and sanitation. It has also been confirmed that the virus is more easily transmitted in areas polluted by excessive traffic. The reduced and regulated traffic and large, air-cleansing green zones in integrated townships are, therefore, a compelling argument. In townships where they are available, schools, shopping and healthcare nearby are distinct advantages. Multi-level security arrangements can ensure very effective segregation from surrounding areas, as well as contact tracing if the need arises.

However, the primary value-adds in such projects predate the pandemic. Most townships are well-planned layouts where optimum space is utilised. Landscaped gardens, jogging tracks and dedicated play areas enhance the overall liveability quotient. Integrated townships also tend to have advanced waste management and rainwater harvesting.

Opening up the townships landscape

Given the nature of the times, we may soon see more such projects being announced. Various government and nodal development agencies have already incorporated various townships-focused changes in their city planning, such as better road connectivity, utilities supply and sewage.

Some of the more promising areas for future development include Kalyan-Bhiwandi and Boisar in MMR, Sohna in Gurugram, North Bengaluru, Yamuna Expressway in Greater Noida, Gahunje in Pune, and West Hyderabad, among others. These locations meet the most important criteria of being well-connected and having enough contiguous land parcels to accommodate integrated townships.

This article is contributed by Anuj Puri, Chairman, ANAROCK Property Consultants.

(The views expressed here are solely those of the author and do not necessarily represent or reflect the views of RoofandFloor)

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