News: 'Indian realty sector has great potential for growth'

(PTI 08/10/2006) New Delhi - The government has said about 75 per cent of India's population is expected to live in urban areas by 2050, which augured well for the booming realty sector.

"The 75 per cent of the population of our country would reside in urban areas by 2050, while only 28 per cent lives presently in the urban areas," minister of state for urban development, Ajay Maken said at the foundation day ceremony of capital based realty firm Aerens Group here.

About 1.14 billion people was expected to live in urban areas by 2050, which is almost the equivalent to country's current population level, he added.

Highlighting a HUDCO commission study on future level of urbanisation, he said only 3.5 per cent of the total area of the country would be enough to meet the housing needs of 75 per cent of the total population.

"All this needs a proper scientific approach to the issue of urban planning," he said.

Maken also drew attention to huge growth potential of the real estate sector through its wide spread linkages with the rest of the economy.

He said the real estate sector happens to be an important sector at a time when the global investors looking at Indian economy.

The minister said nearly 300 million people live in the urban areas in the country according to the latest available official estimate, which is second in the world.

Sharing its humble bit to the on-going realty boom, the capital based Aerens Group is engaged in developing projects worth nearly Rs 15,000 cr.