Transit-Oriented Development (TOD) in India: Shaping Smarter Cities in 2025

As Indian cities continue to expand, the side effects of unplanned growth, traffic jams, long commutes, pollution, and scattered communities are becoming increasingly visible. To address these urban challenges, Transit-Oriented Development (TOD) is emerging as a forward-looking strategy that combines city planning with public transport.

TOD is more than just placing buildings near metro stations, it’s about reimagining how people live, move, and interact in urban spaces.

What Is Transit-Oriented Development (TOD)?

TOD is a planning approach that focuses on creating compact, walkable, and mixed-use neighborhoods around public transit systems, such as metro rail, BRTS (Bus Rapid Transit System), and suburban trains. The goal is to reduce dependence on private vehicles and encourage people to live closer to where they work, shop, and spend leisure time.

A successful TOD area typically has everything you need, homes, offices, shops, schools, parks, all within a 5–10-minute walk of a transit station.

Key Features of TOD

Walkability and Last-Mile Connectivity

Wider footpaths, dedicated cycling lanes, and better access to shared mobility (e.g., e-rickshaws, shuttle buses) make daily travel easy without relying on private cars.

High-Density Urban Growth

Instead of spreading outwards, TOD promotes vertical development (taller buildings) close to transit hubs, helping reduce urban sprawl.

Mixed-Use Development

Homes, offices, shops, and public facilities are all integrated into one neighbourhood, saving time and improving urban vibrancy.

Reduced Car Dependence

With everything nearby and public transport accessible, TOD areas discourage unnecessary car use, helping reduce congestion and air pollution.

Environmentally Sustainable

TOD helps build greener cities by lowering emissions, encouraging energy-efficient buildings, and preserving open land outside urban cores.

TOD in India: Real Examples

India has embraced TOD as part of its national urban policy, especially through the National TOD Policy (2017). Here are some city-level examples:

  • Delhi: TOD policy encourages affordable housing and higher FSI within 500m of metro stations
  • Ahmedabad: BRT-based TOD along the Janmarg corridor enhances access in underserved areas
  • Pune & Nagpur: TOD zones are being created around metro lines with incentives for mixed-use projects
  • Gurugram: The Rapid Metro corridor has enabled private-led TOD with real estate and commercial development

Why TOD Matters for Real Estate

For developers, investors, and homebuyers, TOD presents several benefits:

  • Higher Property Values: Well-connected TOD zones often see faster appreciation and higher rental demand
  • Easier Development: Cities may offer higher Floor Space Index (FSI) and quicker approvals in TOD areas
  • Retail and Office Demand: Shops and offices near transit nodes enjoy better footfall and lower vacancy
  • Affordable Housing Opportunities: Many TOD plans include mandatory housing for economically weaker sections, promoting inclusive development

Challenges to Implementation

Despite its advantages, TOD faces a few roadblocks in India:

  • Coordination Issues: Multiple authorities, transport, urban planning, housing, need better collaboration
  • Community Pushback: Local opposition to taller buildings or denser neighbourhoods can delay projects
  • Risk of Gentrification: Without proper safeguards, TOD can raise property prices and displace lower-income residents

The Way Forward

For TOD to truly succeed, cities must integrate it into broader urban planning strategies. This includes:

  • Using GIS and real-time data to plan infrastructure better
  • Ensuring inclusive zoning that supports both luxury and affordable housing
  • Making public consultations a regular part of urban design
  • Aligning with Smart City goals for digital governance and service delivery

Transit-Oriented Development is more than a transport strategy, it’s a blueprint for building healthier, more connected, and climate-resilient cities. In rapidly urbanizing India, TOD offers a practical path to addressing the daily challenges of mobility, affordability, and sustainability.

For developers, TOD opens new opportunities in high-demand corridors. For citizens, it promises shorter commutes, better air quality, and improved quality of life.

When mobility shapes design, and design serves people, cities become more than places to live, they become places to thrive.