Relation between Real Estate and Urbanization

A unique relation exists between urbanization and real estate demand. It can be highlighted here with a excellent example

Suppose

RD = Real Estate demand

U = Urbanization

P = Population

I = Industry

Urbanization means the area included in urban area and urbanization is the result of industrialization. If industry increased in a city then the scope of employment created. So the rural people will come to the urban area. So we can say-

I  U

I  P

P  U

U  RD

The relational factor of Real Estate and Urbanization are given below:Rate of Urbanization

1. Rate of housing construction


2. Rate of population growth


3. Rate of rural-urban migration


4. Loan (HBFC)


5. Government housing program


6. Scarcity of land and land speculation


7. Income variation


8. Real estate business holders


9. Gap of housing policy of Government


10. Research on housing


11. Tax collection problem


12. Employment opportunity