Why Infrastructure Has to Come Before Real Estate for Livable Cities

The Core Problem With Most Urban Growth

Right now, most fast-growing areas build new homes and offices first. They add roads, water lines, power, and drainage later, once people are already living there. That approach causes big problems. Habib W.S., Managing Director of real estate firm RWD, made this clear at a recent urban development summit in Chennai: infrastructure growth should come first, not after real estate takes off. When you build the other way around, you end up with overcrowded roads, regular water shortages, and flooded streets during heavy rain. Fixing those problems after an area is already built up costs far more than planning for them from the start.

What People-First Planning Actually Looks Like

Too many development plans focus only on profit, not the people who will live and work in the area. That’s a mistake, according to multiple experts at the summit. Pavithra, Co-Founder of Design Co Lab, pointed out that even small details like footpaths matter. A good footpath isn’t just a generic strip of concrete. It fits the character of the neighborhood it’s in, and works for the people who use it every day. Other panellists added that quality schools and healthcare need to be built alongside industrial and residential zones, not years later. Navin Kumar, Managing Director of Navin’s, noted that most people moving to the outskirts of Chennai are buying their first home, and they choose a location based on lifestyle and amenities, not just the price of the house. If an area has no parks, no transit, or no access to services, people won’t want to live there, no matter how cheap the housing is.

Integrated, Transit-Focused Development Works Better

The best way to avoid the pitfalls of unplanned growth is integrated, transit-oriented development. That means building mixed-use neighborhoods that combine housing, offices, shops, and services, all centered around reliable public transit. Gautam Agarwal, Chief Operating Officer of Casagrand, pointed to Hyderabad as a success story: the city planned and built its infrastructure before its real estate sector expanded, leading to smoother, less chaotic growth. Integrated townships that include all the amenities residents need are self-sustaining, and can reduce long commute times dramatically. Jerry Kingsley, Head of Research for India at commercial real estate firm JLL, noted that 65% of all new residential projects launched in Chennai in the last quarter were in the city’s outskirts. As growth moves to the periphery, planning needs to keep up, with transit routes and services built before people move in. Transit-oriented development will be a key part of the next city master plan, he said, to make sure new areas are livable from day one.

Sustainable Tech Makes Cities More Efficient

Future cities also need to be sustainable, and emerging tech can help cut costs and reduce environmental impact. Anson Sando, Co-Founder of Elementech Circle at IIT Madras, noted that affordable cooling will be one of the biggest urban challenges in the coming years, as temperatures rise with climate change. His company has tested AI-powered cooling systems in Andhra Pradesh that cut energy bills by nearly 30%. Smart tech using AI can also optimize electricity use across entire neighborhoods, cutting waste without reducing quality of life. C.S. Santoshraj, Managing Partner of KeyStone Space, added that AI is already reducing administrative work in the construction industry, cutting down on delays and red tape. To make these smart technologies more accessible, he suggested the government offer tax breaks for residential buildings that adopt them, similar to the subsidies already available for rooftop solar panels. Green building standards, water conservation systems, and climate-resilient infrastructure will all be critical to building cities that last, said B. Rajkumar, Tamil Nadu’s Minister for Housing and Urban Development.

Public and Private Sector Have to Work Together

No single group can build better cities alone. Rajkumar noted that the Tamil Nadu government is committed to transparent, tech-driven urban governance, with faster planning approvals, better storm water management, and affordable housing as top priorities. But the government can’t do it all. The private sector has a key role to play in bringing in investment and expertise. B.L. Ravi Kumar, General Manager at State Bank of India, noted that there are multiple funding options available for developers and builders looking to work on sustainable, integrated projects. The key, panellists said, is to prioritize long-term livability over short-term profit. When infrastructure is planned well, it creates the conditions for sustainable economic growth, better quality of life for residents, and more valuable real estate over time.

If you’re interested in learning how to design these kinds of livable, sustainable urban systems, you can try the System Design practice path on Question Better to build hands-on skills for real-world infrastructure projects.