Page 23 - Shelter - April 2025

THEME PAPER

has often come at a significant Goals (SDGs). • Population Growth and
environmental cost, with 2. Scale and Scope of Urban Migration: India is
industrialisation and fossil Urbanisation and Housing one of the most populous
fuel combustion contributing Developments countries in the world, with
to severe pollution and its population exceeding
health risks. Studies highlight India is undergoing rapid 1.3 billion. The urban
that urban air pollution, urbanisation, a trend population is expected
inadequate water supply, projected to contribute to rise significantly, with
poor sanitation, and indoor air significantly to its economic estimates suggesting that
pollution impose substantial growth. According to the by 2050, nearly 50% of
social and financial burdens, United Nations, India’s urban India’s population will
further exacerbating population is expected to reside in urban areas.
environmental challenges. reach 675 million by 2035, This shift is largely
The Environmental Kuznets up from about 461 million driven by the search
Curve (EKC) hypothesis, in 2021. This massive urban for better employment
which suggests that migration has fuelled opportunities, which urban
environmental degradation extensive urban housing centres predominantly
initially rises with economic development. Mega cities like offer. For example, cities
growth but declines after Mumbai, Delhi, Bengaluru, like Bangalore, Mumbai,
reaching a certain income and Hyderabad have and Delhi attract thousands
threshold, has been applied expanded exponentially, with of young professionals
to India. However, empirical both government and private annually, especially from
findings remain mixed, sectors pushing large-scale the tech, finance, and
suggesting that while residential projects. These services sectors, thus
economic growth may development aim to meet the propelling the demand for
eventually lead to better growing need but also reflect housing in these areas.
environmental outcomes, the increasing preference for
this transition is neither urban lifestyles. However, the • Income Growth:
automatic nor guaranteed. pace of housing development Economic expansion has
Additionally, recent research varies significantly across the led to the growth of India’s
has delved into how sectors country, with metropolitan middle class, which the
such as agriculture, energy areas witnessing much more World Economic Forum
use, and trade influence construction activity. notes has been one of the
environmental sustainability, 2.1 Demographic and fastest-growing in the
emphasising the complexity Asia-Pacific region. The
of this relationship. Overall, Economic Factors Driving increase in disposable
Urban Housing Demand
the literature underscores the income among this group
need for policies that integrate The demand for urban has enabled more Indians
environmental considerations housing in India is indeed to invest in property, not
into economic development influenced by a combination just as a necessity but
strategies, ensuring that of demographic and also as an asset for wealth
India’s progress aligns with economic factors, which accumulation. This trend is
the principles of sustainability can be illustrated with more supported by easier access
and the achievement of detailed, current facts and to financing, such as low-
Sustainable Development trends: interest home loans and

April, 2025, Volume 26. No.1 - SHELTER 21