Migration to Urban Cities Boosts Salaries and Housing Demand
Internal migration to urban areas is significantly driving up salaries and housing demand, according to a recent survey. The trend is particularly noticeable in sectors like IT, finance, and healthcare, as well as among blue-collar workers.
MigrationUrban CitiesSalariesHousing DemandReal EstateReal Estate NewsAug 07, 2025
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.
Frequently Asked Questions
What sectors are seeing the most significant salary increases due to migration?
Sectors such as IT, finance, and healthcare are seeing the most significant salary increases due to migration, with some white-collar segments experiencing a near doubling of salaries.
How are blue-collar workers benefiting from migration?
Blue-collar workers, such as domestic helps and factory employees, are also benefiting from migration, with reported salary increases of 1.6 to two times their previous earnings.
Which cities are seeing the highest demand for mid-to-premium homes?
Cities like Delhi NCR, Mumbai, Bengaluru, and Hyderabad are seeing the highest demand for mid-to-premium homes, particularly in the Rs 1.5-3 crore range for 3BHKs.
How much have property prices increased in Mumbai between 2020 and 2025?
Property prices in Mumbai have increased by 58% between 2020 and 2025, reaching Rs 30,796 per sqft.
What steps are the government taking to address the growing housing demand?
The government is implementing policies to support affordable housing and improve urban planning to address the growing housing demand in urban areas.
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