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17 August, 2023
Rapid transformation in the urban infrastructure in India has cast a profound impact on the country’s real estate sector. People are gradually moving to developed cities to embrace an urban lifestyle. According to the predictions of the United Nations, more than 400 million people would be added to the Indian population by 2050. This would poise the country as one of the fastest urbanizing nations in the world.
By 2030, the Indian urban population would be contributing to more than 60% of the GDP of the country. This also implies that people would be rapidly migrating to urban areas from rural ones.
A report reveals that the residential sector in India would be a $1 trillion market by 2030. This would largely be driven by urbanization and rising incomes. Besides, another report shows that the country should be investing $4.5 trillion by 2040 in infrastructure to ensure the necessary urbanization.
With more people living in cities, the demand for residential real estate will continue to rise. This makes it important to understand how urbanization is likely to affect real estate.
In India, the concept of integrated townships and gated communities is being fuelled to embrace an upgraded lifestyle. These projects come with necessary amenities and boast decent connectivity. Besides, the developers integrate sophisticated amenities and provide adequate green spaces in the complexes. The access to schools, libraries, hospitals, colleges, markets, and banks make lifestyle convenient.
Development of smart cities
The initiative of the government to develop smart cities that are technologically advanced gives a boost to the real estate sector. Currently, India is likely to have 100 smart cities that would have better infrastructure, housing, and services to the residents. This policy is being implemented across the country, particularly in South India.
The effect of digitization
With the advent of digital technologies like 3D printing, virtual reality, and drones, the way real estate projects are being designed, marketed, and constructed has transformed. Even property managers are using software to streamline their tasks.
Thus, there has been a notable change in the choice of real estate. High-end properties are witnessing more demand. Particularly, properties located close to commercial zones are on the radar of investors.
Thus, urbanization has gone a long way in transforming the real estate industry in India. This trend is likely to further rise in the coming years.