Migration to Urban Cities Boosts Salaries and Housing Demand
NEW DELHI: Internal migration to urban cities is driving up both salaries and housing demand, a survey has shown. Relocating has led to a near doubling of salaries in certain white-collar segments related to IT, finance, and healthcare. It is also true for blue-collar workers, such as domestic helps and factory employees, who reported a 1.6 to two times jump in their earnings.
Migrants are increasingly investing in mid-to-premium homes, reshaping the real estate landscape in metros such as Delhi NCR, Mumbai, Bengaluru, and Hyderabad, Magicbricks said in a report. These moves are reflected in housing preferences, which have shifted significantly in line with rising incomes. Bengaluru, Hyderabad, and Delhi NCR show a clear preference for 3BHKs in the Rs 1.5-3 crore range, while in Mumbai, 2BHKs account for 40% of demand.
As a result, between 2020 and 2025, property prices rose 58% in Mumbai to Rs 30,796 a sqft, while Delhi and Bengaluru saw demand rise 47.2% and 18.8%, respectively. The surge in demand is not only affecting the real estate market but also the overall economic landscape of these cities.
The survey highlights the significant impact of internal migration on urban economies. Migrants are not only contributing to the job market but also driving consumer spending and investment in various sectors. This trend is expected to continue as more people move to cities in search of better opportunities and higher living standards.
Real estate experts predict that the trend will lead to further development in urban infrastructure, including the construction of more affordable and mid-range housing options. The government is also taking steps to address the growing demand by implementing policies to support affordable housing and improve urban planning.
In conclusion, the survey underscores the positive impact of internal migration on urban economies, particularly in terms of salary growth and housing demand. As cities continue to attract more migrants, it is essential for stakeholders to focus on sustainable urban development to ensure that the benefits of migration are shared equitably.
