New Delhi. Today India is rapidly moving towards urbanization. Migration of population from villages to cities, search for employment opportunities and desire for a better lifestyle has completely changed the face of cities. But as much as this change has brought opportunities, it is also creating equal challenges, especially for the real estate and infrastructure sectors.
According to a United Nations report, every year about 25 million people in India are moving from villages to cities. At present, about 36 percent of the country’s population lives in urban areas, and by 2035 this figure is expected to reach 43 percent. Its direct impact is visible on the population of cities, traffic, water, electricity and demand for houses.
Both boom and pressure in real estate
The biggest impact of urbanization is being seen on the real estate sector. Increasing population and limited land have increased both house prices and rents. Especially in metro cities Delhi, Mumbai, Bengaluru, Hyderabad and Pune, the demand for property is continuously increasing. According to reports, India’s real estate market may reach $1 trillion by 2025. However, this growth is not the same for every class. While there is a boom in luxury housing, the lack of affordable housing has become a matter of serious concern. The government has provided some relief through initiatives like Pradhan Mantri Awas Yojana, but it is still difficult for the urban poor to get a house.
Increasing burden on infrastructure
There is huge pressure on real estate as well as infrastructure. Due to increasing population in cities, there is excessive load on roads, metro, sewage system, parking, water supply and electricity distribution network. Traffic jams and pollution have become common problems in many cities. The government is trying to reduce this pressure through Smart City Mission, Metro network expansion and Sustainable Urban Development projects. But many cities of India are still struggling with the problem of unplanned development. Illegal colonies, weak drainage system and unbalanced construction are examples of this.
Impact of employment and migration
With urbanization there has been large-scale migration from rural areas. Due to this, the number of workers in cities has increased, but the demand for basic facilities has increased much faster. The result is the expansion of slum areas and slums. At the same time, new real estate development is taking place in new cities and tier-2, tier-3 cities due to IT, industry and startup hubs. Cities like Indore, Surat, Jaipur, Kochi are now becoming new investment centres.
Need for green infrastructure and sustainable development
Rapid urbanization has also affected the environment. Therefore, now the need for sustainable models like green building, electric mobility, recycled water system and solar energy is being felt more than ever. Both the government and private sector will have to jointly focus on eco-friendly infrastructure, so that the balance between development and environment is maintained.
the way forward
It is not possible to stop urbanization completely, but it is necessary to adopt it in a planned and sustainable manner. This requires special focus on master planning, transport network, affordable housing, and public facilities. If India succeeds in developing its cities better, in the coming decade it can generate huge investment and employment opportunities not only in real estate but in the entire economy. But if urbanization remains unplanned, then the same development can also become a cause of crisis in future.
