India is a USD 3 trillion economy and aggressively moving towards becoming a USD 10 trillion economy by 2030. One of the main constituents of this growth is massive urbanization. It also presents exciting investment opportunities right from improving the quality of urban services such as water, sanitation, urban transport and planned development of land resources.

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According to a United Nations report, at present, more than one-half of the population lives in urban areas and almost all countries are becoming increasingly urbanized. The total urban percentage population around 2050 is projected to rise by 2.5 billion. 

The comprehensive urban development has led to a huge demand for infrastructure and real estate. 

According to World Bank, by 2036, 600 million people will be living in urban cities in India, representing 40 percent of the population. This is likely to put additional pressure on the already stretched urban infrastructure and services. Currently, the central and state governments finance over 75 percent of city infrastructure, while urban local bodies (ULB) finance 15 percent through their own surplus revenues.

According to Atul Goel, MD, Goel Ganga Group, urbanization has created massive opportunities for growth as increasing demand has resulted in a rise in economic activities.

According to PWC in 2015, 85 per cent of global GDP was generated in cities that have the maximum real estate coverage. It said that the institutional investments in the sector have jumped to a massive $ 492 million in 2022 as compared to an investment of 77 million US$ in 2021.

Goel said that the increasingly smart new-rise apartments, offices and leisure facilities show how urbanization has given rise to the next generation infrastructure which is more people-centric.

"The sector has helped in industrialization, better healthcare facilities and enhancing the standard of living. It has also contributed to today's commerce and helped in generating new employment opportunities," he said.

Notably, the government has since 2014 has already invested more than $160 billion on creating and upgrading urban infrastructure and ensuring ease of living for the citizens. India’s investment in the urban sector has jumped by over 600 per cent during 2014-2021 as compared to 2004-2014.