Migration Trends to Metropolitan Cities in India and its effect on the real estate market

Feb 10, 2024

India is experiencing a significant shift in population as people from rural areas are flocking to metropolitan cities in search of better opportunities. The lure of metropolitan cities is strong, with promises of better job prospects, higher salaries, and improved living standards. This has led to a surge in the number of people migrating from smaller towns and villages to cities like Delhi, Mumbai, Bengaluru, and Chennai. This tendency is expected to continue in the future, with the UN forecasting that the country's population would increase by more than 400 million by 2050, making it one of the world's most urbanising countries. By 2030, India's urban population is predicted to make up more than 60% of the country's GDP. The rapid urbanization and economic growth of these cities have made them attractive destinations for job seekers and entrepreneurs alike. As a result, the population in metropolitan cities is skyrocketing, putting pressure on the real estate market.

The migration trends to metropolitan cities have a profound impact on the real estate market. The increased demand for housing, coupled with limited supply, has led to skyrocketing property prices. The high cost of real estate in metropolitan cities has become a major challenge for both buyers and sellers. Homebuyers are finding it increasingly difficult to afford a house in these cities, while sellers benefit from the rising prices.

The migration trends to metropolitan cities have shaped the current housing trends in these areas. One notable trend is the rise of compact and affordable housing options. With limited space and increasing population, developers are focusing on creating smaller yet functional living spaces. This trend caters to the growing demand for affordable housing in metropolitan cities.

Another trend is the increased popularity of gated communities and integrated townships. These developments offer a range of amenities and facilities within a secure and well-maintained environment. The concept of a self-contained community has gained traction among homebuyers, providing them with a sense of community and convenience.

Sustainable and eco-friendly housing is also gaining prominence in metropolitan cities. With growing environmental concerns, developers are incorporating green building practices and energy-efficient features in their projects. This not only attracts environmentally conscious buyers but also helps reduce the carbon footprint of these cities.

A highly significant trend that is occurring is the rise of smart cities. These cities are intended to be technologically sophisticated and ecologically friendly. The government's smart cities strategy has been created with the goal of transforming over 100 cities into smart cities with the idea of providing better infrastructure, housing, and services to local people. Among the principal areas in which this programme is being implemented is southern India.

The migration trend to metropolitan cities has opened up promising real estate investment opportunities. As the demand for housing and commercial spaces continues to rise, investors can capitalize on this trend by investing in real estate projects in these cities. However, it is essential to conduct thorough research and due diligence to identify the most promising investment opportunities.

Real estate developers can adopt several strategies to cater to the needs of migrants and capitalize on the migration trend. Firstly, developers can focus on building affordable housing projects that offer a range of housing options to suit different budgets. This could include compact apartments, shared accommodations, and co-living spaces.

Additionally, developers can invest in creating mixed-use developments that integrate residential, commercial, and recreational spaces. This approach not only provides convenience for migrants but also creates vibrant communities where people can live, work, and socialize in close proximity.

The migration trend to metropolitan cities in India has a profound impact on the real estate market. As the population increases, the demand for housing and commercial spaces surges, creating opportunities for real estate developers and investors. However, addressing the challenges faced by migrants in finding affordable housing is crucial for sustainable growth. By understanding the factors influencing migration, adopting strategies to cater to the needs of migrants, and leveraging government initiatives, the real estate market can thrive in these metropolitan cities.