Despite the setback the golf industry has faced in the first half of 2020, the outlook for the growth of golf is still positive. This is because golf continues to be an aspirational sport in this country. State governments, realizing its value, place a premium on the development of a golf course in order to attract international investors and cater to a more global audience for their projects. This is especially true in the proposed SMART City development projects being undertaken across the country. In order to attract, investment and interest in the project, the government is looking to provide world class amenities in these proposed cities and golf development is an important element.
Despite the temporary shock experienced during the COVID 19 lockdown period, development of these projects will continue. State governments are also seeing the potential of golf tourism and actively encouraging the development of golf in tourist spots to promote these zones. As states look to appeal to not just a domestic but international audience, among other facilities, golf stands out as an activity which they are keen to embrace.
In addition to renewed interest from the public sector, in a post COVID 19 world golf development will also find favor with the private sector developers. The reforms brought about by introducing RERA and the access to funds from REIT will provide immense support and stimulus to developers. These reforms bring a uniform level of quality and higher standards of quality required for golf development projects. It is expected that larger companies will be more aggressive with their expansion and launch projects targeting an affluent segment. As a luxury lifestyle development golf stands to benefit from this expansion.
With regard to the consumer market, the initiatives launched by the government so far have increased access to credit for individuals and the moratorium on loan repayments is also a positive move. As home buyers have more credit, the demand for residential projects will increase. This growth will also be seen in secondary and tertiary towns which will see more new projects as against the saturated metros in the country. Going forward the demand for golf can be from these secondary cities as they seek attract ‘second home’ buyers from the cities as well as premium customers from those locations.
The philosophy of using golf to add value to a development continues to be sound. However, our engagement with developers must evolve. Designers must be more sensitive to the costs involved in golf course construction and land aggregation in India. Golf course designs must be environmentally sensitive and conservative in resource utilization. Golf courses have always provided multiple benefits to urban and suburban locations:
1. Golf courses act as buffer zones, protecting local flora and fauna
2. In major towns and cities golf courses act as important lung spaces
3. Local labor employed on golf courses as caddies or maintenance personnel will provide invaluable employment for underprivileged youth in secondary towns and the urban poor
4. Golf courses can be partially utilized as environmental parks and access can be allowed to the public in certain areas of the course at certain times.
5. It is possible to develop golf courses on landfill sites of the city, allowing the land to be utilized rather than leaving it undeveloped, ugly, unhealthy and in-arable
6. Areas surrounding the golf course also benefit as the land value around a golf course appreciates faster than those further away
It is important to highlight these ideas around development of golf especially in a post Covid 19 world. Golf facilities need to be sensitive to conditions of the environment and needs of the community. The positive changes in real estate development policy offers the opportunity to change the way golf development is perceived. If more golf courses are successful, they will set powerful precedents for the future. Post Covid 19 offers a new future where golf is not viewed as a resource consuming enterprise, but an enterprise that is sustainable, ecofriendly and positive to the community. It is time to write the next chapter in the growth story of golf in India and learn from earlier mistakes.
