The government's recent approval of 12 industrial smart cities under the National Industrial Corridor Development Programme (NICDP) aims to boost manufacturing, logistics, and attract FDI, focusing on tier 2 and 3 cities for balanced regional growth. Experts see it as a big move.

Gautam Saraf, MD - Mumbai & new business, Cushman & Wakefield, is of the view that this new initiative will incentivise investors, developers and occupiers to look at tier 2 and 3 cities, particularly for high-quality warehouses and manufacturing facilities. "The rise of industrial hubs in these locations will encourage growth of residential precincts & social infrastructure around it," says Saraf.

Santhosh Kumar, vice chairman, Anarock Group, too calls it a major move that will spur growth in surrounding areas and create significant employment. "This will inevitably boost real estate prospects in and around these cities," he says.

Kamal Khetan, CMD of Sunteck Realty, highlights that the 28,602 crore investment will align with PM Gati Shakti principles like 'plug-n-play' and 'walk-to-work, promoting planned urbanisation. He anticipates that the initiative is expected to generate 10 lakh direct jobs and upto 30 lakh indirect jobs, driving demand for office spaces, retail hubs, and residential properties.

Typically, 1 million sq.ft. of office space drives a demand for 3-4 million sq.ft. of residential space, highlighting the strong link between industrial growth and real estate needs. "This project will stimulate regional development, attract investments, and drive growth in both sectors across India, adds Khetan.

Vikram Singh, president, Central Park, too expects the development of these industrial parks to spark economic activity in surrounding areas, boosting real estate demand across all sectors.

As India strives for a 5 trillion-dollar economy, Royal Green Realty is committed to contributing by developing an industrial park in Haryana. "This eco-friendly project will set a benchmark for sustainable development, serving as a model for other developers," reveals Yashank Wason, MD, Royal Green Realty.

Aditya Kushwaha, CEO and director, Axis Ecorp, remarks that the government's focus on developing industrial corridors will not only promote modern business hubs but also enhance large-scale manufacturing and logistics, thereby increasing real estate values in surrounding areas. "This strategic initiative aligns with India's goal of becoming a global Industrial powerhouse and fosters sustainable growth in the real estate market," asserts Kushwaha.

Dr. Amish Bhutani, MD, Group 108, points out that as industries set up operations, the demand for office and retail spaces will naturally rise. "The need for modern, scalable, and flexible office spaces to support growing Industrial businesses will be crucial to this growth," affirms Bhutani.

Vishal Raheja, founder & MD, InvestoXpert.com, expects over 500,000 jobs to be created in these hubs, driving a 20% value increase within five years. "The influx of tech companies and professionals will boost demand for quality real estate, creating vibrant economic centres, expresses Raheja.

Sanjoo, MD of 4S Developers, predicts modern cities with world-class realty developments and global lifestyle amenities will transform urban landscapes. He also stresses, "This initiative will boost demand for housing, office, retail, warehousing, and logistics spaces.

Santhosh Kumar concludes that the key is rapid execution. Past initiatives have faltered in this area, and the real benefits will only materialise with timely completion.