Do you remember the year 1978? You may have been alive; you might have just been an infant. To refresh your memory, in 1978, icates that India will need to invest $1.2 trillion in capital expenditure over the next 20 years in order to support this process – 8 times the country’s current level of spending. Traffic in New Delhi is pictured right.
The second inevitable consequence of urbanization is the burden placed on urban housing markets, as mass migration to city centers provides a powerful and consistent demand for real estate with accessibility to the downtown core. In order to maintain the affordability of housing, the real estate development in these areas will also need to rise commensurately, as an overheated real estate market can prove disastrous for a country’s economy. The increased development will most likely materialize in the form of high-rise condo buildings, in order to quickly satisfy housing demand and avoid feverish real estate prices.
Based on the statistics and research, it is clear that urbanization will continue to have a profound global impact in the 21st century and beyond, however, the local intricacies of each market will also necessitate tailored reaction, as various countries undoubtedly exhibit their own individual challenges.
Although the urbanization of China and India serve as excellent illustrations of the challenges encountered by developing nations, similar movements can also be observed closer to home. The urbanization process in the developed world – albeit on a slower scale than that of the developing world –presents unique challenges that will need to be addressed in the coming years. Our next post will discuss the impacts of urbanization on the Greater Toronto Area: which are readily visible, which are still to come, and the likely future coping mechanisms needed to handle the process.
