Household characteristics – Kerala population and housing

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The period 1941-81 has been one of the sharpest increases in rate of growth of urban population in Kerala. The partition of India in 1947 led to a large influx of population during the decade 1941-51. During the same decade, the urban population grew at an even higher rate, i.e., 106.58 percent. The rate of growth had declined since then to 54.57 percent (during 1961-71) and to 58.16 percent (during 1971-81).

The number of housing units including sub-standard units for the corresponding periods has increased by 43 percent and 71 percent respectively. In a period of relative scarcity of housing one would expect doubling up by some households and an increasing trend towards renting out the built up living spaces. In 1971-81 the pressure on housing got reduced somewhat.

In Kerala Property values started appreciating at first during the gulf boom. There was a recession in the late eighties. After the liberalization of the Indian economy in the early nineties, even the developments during the gulf boom got eclipsed and house prices moved up to phenomenal levels unseen in the history of the landed property.

During the early times of this decade, there was a slump in the property market due to the bursting of the dot com bubble and also the world trade center incident which led to a small decline in the outsourcing of back office operations to the country. Even then the property values never declined to the levels seen in the late eighties. During the present recessionary trends in the global economy, property values have not gone down in spite of a great decline in property transactions. This explains the phenomenal developments that have overtaken the property market in Kerala since the liberalization of the Indian economy in the early 1990s.

Well, is there any opportunity that is present here? Or do you have any business ideas regarding this property sector?