Building tomorrow’s smart, green and liveable cities

Dr Lal Bhatia is the chairman Hillshaw Group, a real estate company 

Harriet James @harriet86jim

Briefly describe your journey into real estate

I pursued a bachelor’s degree in Economics from the Calcutta University in Kolkata, India in 1987, and thereafter, I did a Master’s in Business Administration from the Hawaii Pacific University in Honolulu, Hawaii in 1996.

This was the beginning of my journey in business strategy and management spanning over 34 years now.

My core competencies, include new-ventures, team building, change management, business development, real estate investment and development, film production, brand development, tactical acquisitions, good governance and strategy.

I was recently awarded an Honorary Doctorate in International Business Strategy and Tactical Acquisitions from the Royal American University, USA. 

Why do we need smart cities?

The Covid-19 pandemic has resulted in a hunger for people looking to have a more sustainable lifestyle.

As a business strategy, we decided to go to developing countries, such as Kenya, which has a population pool, as well as a government that has a conducive environment for smart cities.

At the same time, we needed a region that has not been affected by the health crisis that the world has faced.

Yes, Kenya has been affected by Covid-19, but if you look at how the virus has been managed and how the protocols have been handled, it’s commendable.

Furthermore, Kenya has a very large land bank with natural resources and beauty, that helps our purpose for a smart green city. 

How has the pandemic affected how the future smart cities will look like?

The protocols have affected how we will design future cities. Before the pandemic, families would either go to work or school and then they would come back and share family time together during dinner, but the effects of the lockdowns have made a big difference in how people live.

So why not design a city where you can live in a lockdown, but be comfortable. 

Why is smart city development slower in developing countries?

Lack of partners to invest in the project is the chief reason most smart city projects fail.

For instance, if you look at the smart city projects in the country, you’ll discover that it is just one partner who is collaborating with the government and I see this as a recipe of failure since you have to rely on the government’s budget and the economy.

We believe that our model will be successful because we have numerous partners involved in the project.

We have signed an agreement with Athi River Smart Green City, a local investor to develop a sustainable smart city and they are seeking to partner with other real estate developers in Africa.

Construction is set to begin by 2022 and finish the first phase within three years.

The development will be home to a self-contained community and will comprise of retail spaces, commercial offices, restaurants, hotels and green resort, golf course, learning institutions and community centre.

It will also have hospitals, sports and entertainment facilities and 4,000 residential units.

Every project requires the blessing of a government. So what kinds of government policies make smart cities thrive?

First, based on the Paris agreement, whose goal is to limit global warming to well below two degrees Celsius, most of the governments have made a decision to create sustainable spaces and reduce their carbon foot print.

This is what makes the biggest difference and that is one policy that enables the creation of smart cities.

Kenya is a signatory of the statute and that already makes smart cities thrive.   

Second, is the availability of large tracks of land. We have a local partner who will assist us navigate the government issues, such as getting land together with the approvals required. 

Will the smart city model create a social divide?

No, it won’t, since more investors will come in to build more smart cities. This will consequently result in competition and that brings the prices down, which is good for the consumers.

For instance, in 1964 in Japan, the city of Yokahoma had pollution and traffic issues.

In addition, only two per cent of toilets had been connected to the waste management programme, but because of the smart city projects, Yokahoma is the greatest smart city in the world because many partners came in and built smaller fractions of smart cities within the large city.

While the government plays an important role, private companies and individuals play the biggest role when it comes to sustainability of the projects.