Urbanisation boost realty growth

Real estate sector growth and urbanisation are dependent on each other. The greater the urbanisation the realty sector would be higher. What would be the impact of the urbanisation on the domestic real estate sector?

The urbanisation is proceeding through the fast lane in the country. Migration of people to the towns and cities is on the rise for the past several years. If the same trend were to continue, by 2050 the urban population would cross 40 crore, according to an observation by United Nations. The residential homes sector is expected to cross $ 1 trillion by 2030 because of the growing income of the people and rapid urbanisation. According to a report, if the same trend of urbanisation were to continue the investments to be made infrastructure development sector by 2040 would be $ 4.5 crore. More and more people are migrating to towns and cities, the demand for residential homes, residential real estate would grow on. In this context, it is essential to understand the impact of urbanisation on real estate.

Community living

Gated communities and integrated township concepts have become quite popular with the people. The growing trend is attributed to the desire of the people to upgrade the standards of life. The people incline to live in places that are poised to grow further. The people prefer to live in places having suitable connectivity with of other regions, modern amenities and greenery.

Smart cities development

Smart cities development is a significant change. The cities have been designed in such a way to have developed technologically and environmentally stable. The Centre has devised smart cities policy with the objective of providing better infrastructural amenities to people living in cities, better homes and better services to them. Digitalisation has been revolutionising the real estate sector too. The cities have transformed into digital hubs that promote urbanisation. The demand for high-end housing has gone up. The people are keen to upgrade their living standards now compared to earlier. They are looking for multi-functional modern homes. With the growth of real estate, the categories in real estate are also on the rise.

Urbanisation of population is lending the much-needed support to the real estate sector growth. The demand for real estate growth is due to the increase of the per capita income. Therefore, the urbanisation that promotes the income level of the individuals is also influencing the real estate rather positively. In fact, over 50 per cent of world population lives in urban areas. It paved the way for more and more growth of real estate growth. By 2050, the urban population will cross 2.5 billion. It would mean the demand for residential sites will go up in the next two decades.