Smart Cities for Sustainable Development and RealEstate Strength

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Opinion andanalysis byFrank Wallem

Globalizationand thecontinuouspursuit forhigherdevelopmentand themaximizationof humanknowledge,materialresources, aswell as socialand economicexcellencehave beeninducing a dynamic state of growth in many societies. Today, advanced societies provide myriadopportunities for personal and larger development, life conveniences, technological advantages, andefficiently integrated communication. We are living in an era where three major factors are becomingmajor necessities to equip us in conforming to dynamism. These three major factors are information,communication, and technology. The pursuit to integrate these three into the everyday human life and thecorporate sphere is not just a personal journey. Supportive and people-focused governance highlights theneed to enhance accessibility and the mobilization of these resources. Right now, a trend that isincreasingly becoming popular among highly progressive nations is the evolution into smart cities.

What is a smart city?

A smart city hosts investments in human and social capital as well as transport and ICT infrastructure thatdrive both sustainable social and economic development and a high quality of life for its citizens, alongsideefficient conservation and management of natural resources. The process of evolving into a smart city isguided by participatory and engagement approaches. Essentially, this definition insofar embodies the coreconcept of a smart city, which is efficiency, which then gives birth to sustainability. Not only does this giverise to even more modern city infrastructures, new environmental management frameworks, and freshapproaches to more convenient and time-saving lifestyles, but it also highlights the need for sound andresponsible governance that will serve as the foundation for a whole new approach to economicdynamism.

Smart cities and real estate

While the far-reaching advantages of constructing smart cities have already been established especially in

terms of societal, economic, and human development, smart cities are also becoming a popular concept inthe real estate market. Apparently, the construction of smart cities has possibly evolutionary consequencesfor the real estate business, as this can boost the real estate market, add value to properties, and thusexponentially increase profit yields, consumer trust, and fierce market competition. All of these arecharacteristics of high market stability and reliability, which can be quite difficult to attain amid the globalvolatility and instability of markets and the transactions involved.

Smart cities in Europe

In Europe, smart cities are not a futuristic concept. Rather, they are being concretized right now. Forexample, in the United Kingdom, Glasgow recently won a government grant to fund its evolution into asmart city. In addition, European Green Capital Awards from the European Commission have been givento different cities, including Stockholm, Hamburg, Nantes, and Copenhagen, which is the 2014 winner.The key concept of evolving smart cities perhaps lies not just in the infrastructure being built, but in itsinnovative uses. Smart cities are all about efficient utilization and resourceful innovations, which is whytechnology, design, and environmental friendliness have important roles in the creation of smart cities.It is commendable that European smart cities are now focusing on the efficient use of energy,establishment of smart buildings, efficient demand management, accessible health care, and of course,continually advancing information technology. It is no wonder that the region is becoming a healthy host forfurther real estate investments. The growing market of real estate in Europe could drive the wholeEuropean economy forward and sustain the effects of recession.

Smart cities in Asia.

Recently, India and Africa have been stimulating talks on building smart cities. In the first week ofSeptember, the Web site The Hindu released a news article regarding India’s plan to build 14 smart cities.The article further states that international airports will be built in three Indian states Visakhapatnam,Vijayawada, and Tirupati. Particularly, in the state of Andhra Pradesh, 14 smart cities are proposed to bedeveloped, as announced by India Chief Minister. Accordingly, the government “proposes to leverage theSmart Cities program of the Union” to aid in the construction of 14 smart cities. Plans for the developmentof international airports have already been prepared; in addition, metro rail projects are also underway, setto undergo scrutiny from the government of India and feasibility studies by other concerned institutions.These transportation developments would open up a transport network that would address theconnections of states and regions within the country.

On the other hand, many South African countries have been eyeing the possibility of smart cities, as oneway of attaining sustainable economic and social development and a key capability to conform toworldwide dynamic growth. Establishing smart cities is a major goal for many developing countries, and isseemingly becoming an all-in-one solution for many struggling economies. For developed and highlyprogressive countries however, the concern is to continuously develop, enhance, and elevate the level ofefficient production, marketing, and resource use. Although the details are intricate, complicated, andrequires thorough study as well as transparent and efficient governance, smart cities would driveeconomies forward, mobilize human and material resources, and provide a high quality of living for manycitizens. It should become one of the ultimate goals of every nation.