The town planners in developing countries now face an enormous task.  The growing urban population and the lack of basic amenities in the urban areas is a major problem.  World over, especially in the developing countries population growth is continuing unabated.  It is being estimated that a quarter of a million people are going to be added to most of the cities each year. 

In India, most of the metro cities have already reached saturation point in business expansion and also real estate development.  However, Real Estate Investment in India is still happening in the urban areas in many parts of the metros and other cities because the relaxation in the rules and regulations governing urban development has helped the real estate developers to build skyscrapers with more than 30 floors.

However, proper housing amenities have not reached a major section of the population in India.  With the rise in incomes and reduction in poverty, a major change is being witnessed in the investment patterns of the people.  The world’s urban population more than trebled between 1950 and 1990 and reached 2.1 billion.  Demographers estimate that between 1990 and 2020 it may cross 5 billion people. 

Real estate developments in the developing countries are going to be more pronounced because much of the population growth is going to be in the developing world.  Some of the cities in India are expected to see population growth of more than 160 per cent.  Along with the population growth, the need for affordable living spaces will also grow.  Since no government agencies have been able to meet this soaring demand, the private sector has a major role to play.

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