Urbanization in India

70% of Indians dwell in villages, however more than 60% of country's GDP is contributed by people living in urban areas which accounts for 90% of Indian Government revenues.

There are 10 metropolitan cities in India where more than 4 million are residing and in only 28 cities 1-4 million people are residing out of total 63 cities. ¼ of total urban population is residing in slum areas and ever lasting effects on property demand. Demand of property in urban areas is though high but there is unending scarcity of residential property in urban areas. India will have 500 million urban populations by 2017 and estimated slum population will be 60 million by 2016 according to a World Bank Report.

Migration

Villagers Migrating to Cities

Rank	Metropolitan area	State/Territory	Area (in km2)	Census 2011
1	Mumbai Metropolitan Region	Maharashtra	4,355 km2	18,414,288
2	National Capital Region	Delhi, Uttar Pradesh, Haryana	34,144 km2	16,314,838
3	Kolkata Metropolitan Area	West Bengal	1,886.67 km2	14,112,536
4	Chennai Metropolitan Area	Tamil Nadu	1,189 km2	8,696,010
5	Bangalore Metropolitan Area	Karnataka	1,276 km2	8,499,399
6	Hyderabad Metropolitan Area	Telangana	7,100 km2	7,749,334
7	Ahmedabad Metropolitan Region	Gujarat	464 km2	6,352,254
8	Pune Metropolitan Area	Maharashtra	9,220 km2	5,049,968
9	Surat Metropolitan Region	Gujarat	4,255 km2	4,585,367
10	Jaipur Metropolitan Region	Rajasthan	623 km2	3,073,350
			64,513 km2	92,847,344

Many cities of India have comparable population to the population of some of the countries of the world as Delhi – Chile, Chandigarh – Estonia, Goa – Guinea Bissau, etc.

Only in Mumbai half of the population is residing in slum areas and need some better housing options to dwell with. The demand of housing property and office space in urban areas is soaring constantly. There are some obstructions which are hampering the progress of construction of properties:-

1. There are many local bodies in a single city;
2. Master plans are rigid and zoning regulations are restrictive;
3. Building construction regulations - Floor Space index etc.; 

4. Outdated rent control acts & regulations;
5. Poor financing facilities;
6. Lack of funds with the local bodies and lack of creditworthiness to raise funds from market.

Striving for their life in unhygienic slums areas of Urban and Metro cities, the habitant needs good habitation areas for them; either it is on rent, lease or owned.

People are migrating to towns/cities from villages in India in search of economic opportunities and thus have expanded urbanization to a great extent. Central & State Governments are making all out efforts to ensure better economic opportunities in villages itself. The National Rural Employment Guarantee Act has introduced many schemes for the villagers. These schemes are implemented under the supervision of Panchayats (village councils in India) which guarantee employment for poor villagers, who are living under poverty line and thus creating an atmosphere of non-migration to cities.

JNNURM

Jawaharlal Nehru National Urban Renewal Mission a Central Government agency has taken many pivotal steps for the development of urban areas.

Consequently, housing & property industry has increased eventually.

Now property websites are blooming and they are serving builders, home loan agencies, property buyers etc. Homes and property on rent are also available on b2c portals and can be accessed on a single click. While many needs houses to live while some are investing their money for buying new property. All these facts have created a bubble (due to price rise) in the property industry.