Cushman & Wakefield Report, 'Modern Urbanization – Challenges in Setting up Smart Cities', Identifies Five Crucial Elements to Create ‘Smart Cities’

In a report released today by Cushman & Wakefield, global real estate consultancy, at the conference organized by PHD Chamber of Commerce & Industry, entitled “Modern Urbanization – Challenges in setting up smart cities” in New Delhi, C&W has identified five crucial elements that need simultaneous growth to ensure that India is able to create ‘Smart Cities’ as per the plan. The five elements are Power, Infrastructure, Funds, Technology and Social Capital.

India is rapidly urbanizing and the urban population in 2031 is expected to increase to 600 million, which will be crucial to the country’s economic growth and they will require massive restructuring to support the future population. Smart cities propose a solution to mitigate the problem of urbanization. They integrate Information and Communication Technology (ICT), energy efficiency and sustainability to support future generations.

In order to implement an extensive undertaking such as a ‘Smart City’ 5 crucial elements are necessary: Power, Infrastructure, Funds, Technology and Social Capital. Smart Cities require clean and continuous supply of power and for this there is a need to develop alternative energy sources to make the cities financially and ecologically viable. Both physical and social infrastructure developments will be crucial. In addition to this up gradation and maintenance of the existing infrastructure is necessary.  Developing innovative and viable mechanisms to secure funds for developing smart cities is essential. Strategies to engage multiple stakeholders will be necessary. Finally smart cities require technology advancements that can support the overall objective of the initiative. Promoting innovations in technology and providing skilled human capital that can create, engage and sustain the future cities will be an integral element.

The report further states that irrespective of the categorization, all smart cities integrate ICT into different components. These components include, Energy, Transportation, Smart Buildings, Governance, and Social Infrastructure. However the scope and extent of this integration and application may greatly vary between cities.

Sanjay Dutt, Executive Managing Director, South Asia, Cushman & Wakefield, said “The government plans to develop 100 smart cities over the next 20 years which will require the government to look at New cities, satellite towns near megacities, up gradation of mid-sized cities as well construction of settlements along industrial corridors will be undertaken, as part of this initiative.” 

Smart cities depend on non-renewable resources for generating power, promote mixed use developments to encourage walkability and reduce wastage of resources. Efficient energy management though smart grids and smart metering are an important feature. These cities provide seamless integrated public transportation that allows efficient and swift mobility across the city. Smart cities will consist of energy efficient buildings that reduce the overall carbon footprint. Every citizen will have access to quality social and physical infrastructure. In addition to this, reformed governance structure with accountable and empowered urban local bodies will support effective implementation and future sustenance of the cities.

Sanjay further added, “While there is a need to address these challenges, there is political will and commitment of the central government to bring in large scale reforms. Additionally, the government has the opportunity to utilize the existing skilled human capital that can aid in the future development of ICT integration. A smart city requires the engagement of its empowered citizens to achieve its overall objective of building a sustainable and thriving city; steps to empower the citizen and solicit their complete support are vital.”

About Cushman & Wakefield:

Cushman & Wakefield is the world’s largest privately-held commercial real estate services firm. The company advises and represents clients on all aspects of property occupancy and investment, and has established a preeminent position in the world’s major markets, as evidenced by its frequent involvement in many of the most significant property leases, sales and management assignments. Founded in 1917, it has approximately 250 offices in 60 countries, employing more than 16,000 professionals. It offers a complete range of services for all property types, including leasing, sales and acquisitions, equity, debt and structured finance, corporate finance and investment banking, corporate services, property management, facilities management, project management, consulting and appraisal. The firm has nearly $4 billion in assets under management globally. A recognized leader in local and global real estate research, the firm publishes its market information and studies online at www.cushmanwakefield.com/knowledge