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The Print
an hour ago
- The Print
No one should have to choose between a roof and two meals. But India's migrants do, every day
According to the rates established by the Centre, the average minimum monthly wage in India varies between Rs 20,358 and Rs 26,910 — depending on the skill level. After spending more than Rs 13,000 on rent and commuting, and sending over Rs 7,000 back home to support their families, barely any money is left for survival. Working and earning in a new city requires a roof over one's head. Buying a house is out of the question for these economically weak labourers and migrants. Devoid of social capital and faced with a lack of affordable housing near their workplaces, they are forced to commute long distances. Lack of job opportunities in rural areas forces thousands of economically challenged, aspirational youth to migrate to cities in search of livelihood. With empty pockets, hungry stomachs, growing families, and ailing parents, they leave their villages in hope of better jobs — only to face newer challenges in urban India. While 30 percent of income is considered the ideal amount to spend on rent, Indians spend approximately 45-50 percent of their income on it, leaving just half their earnings to cover food, travel, nutrition, and medical expenses. Mahesh, a migrant labourer from Jharkhand, says he sends Rs 7,000 to his family back home, pays Rs 8,000 for rent, and spends Rs 3,000 on commuting. Out of his income of Rs 23,000, he barely manages two meals a day. Also read: RBI's new gold loan guidelines could push borrowers back to moneylenders The middle-class dilemma Startling figures such as a Rs 23 lakh security deposit for a 4 BHK rental in Bengaluru, Rs 22,000 for a modest 1 BHK in Velachery, Chennai, and annual rental costs of Rs 5.18 lakh for a 1 BHK in Mumbai reflect the growing distress of the middle-class. The sharp rise in rent, coupled with inflation in food and fuel prices, has become a spine-crushing burden. What used to be considered anomalies or outliers in the past are now symptoms of a much larger and growing crisis. From January to June 2025, the rental growth rate in major metropolitan cities outpaced the national average. Metros like Pune, Mumbai, and Kolkata saw rental increases of more than 10 percent to the previous year. Delhi, Chennai, and Hyderabad have had more moderate hikes, according to data from Magicbricks. But the question remains: what are the pressing factors behind this rate hike, especially after Covid-19? Reasons of increased rentals The primary reason is the demand and supply dynamics that influence rental prices in metro cities. The perception of rising salaries in some sectors pushes up the overall cost of living, affecting even those who aren't directly benefitting. As one individual in Bengaluru put it, 'Young techies lack street smartness and have high salaries.' They inadvertently drive the rent hikes, creating issues for people earning Rs 70,000-80,000. As demand rises but supply remains stagnant, prices continue to soar. Undoubtedly, population growth and migration patterns play a huge role in driving demands. The migration of young talent from rural to urban areas in search of a better life is a major reason behind the rise in demand. For instance, in India's Silicon Valley, reports say 185 people compete for one house — compared to just seven in Dubai. Cyber hubs and technology parks are beehives for workers, which naturally drives up demand and rent in surrounding areas. On the flip side, large-scale redevelopment and the construction of new societies to meet housing demand are displacing the poor, widening the inequality gap. Also read: Make in India is a startup graveyard Effect on society The consequences are not limited to material discomfort. They have far-reaching psychological and social impacts. Struggles for the middle class have increased multifold. Parting with a major chunk of income just to cover rent, food costs, education, childcare, and medical bills has completely drained people's pockets. Asha Kumari, who moved from Jharkhand to the Wazirpur Industrial Area in Delhi, shared a rented room with two other female workers. Within a year, the owner raised the rent per head from Rs 1,000 to Rs 2,200. She now lives in an unauthorised colony with no toilets and has to walk 10 minutes to reach pay-per-use facilities. Her health is deteriorating due to unhygienic conditions, but she can't afford better. Government housing schemes remain inaccessible to her because she has no local ID proof or a residence certificate. High rental costs have also led to the fragmentation of families, as the rising cost of living in cities forces many to leave their families behind in their native villages. This strains both affinal and filial relationships, creating ripple effects across society. The need for policy intervention In a functioning democracy, the least, the last, and the lowest must not merely survive, but thrive. Policymakers must ensure that labourers, milkmen, newspaper vendors, and other essential workers do not have to sacrifice food just to keep a roof over their heads. These are the people who build our cities, keep them running, and connect us mile to mile, and yet they remain the most ignored section of society. Urgent policy reforms are needed to encourage low-cost housing solutions. No one should have to choose between a roof and two meals. The real choice should be between dreams, not necessities. Karti P Chidambaram is a Member of Parliament for Sivaganga, and a Member of the All India Congress Committee. His X handle is @KartiPC. Views are personal. (Edited by Prashant)
Hans India
an hour ago
- Hans India
Financial discipline drives momentum in Indian real estate sector, bank credit surges: Report
New Delhi: India's real estate sector has significantly improved its financial discipline, resulting in more credit from banks, credit rating upgrades and investor enthusiasm, according to a report on Tuesday. The credit rating of real estate companies rose due to better operating margins, profitability margins and leverage ratios, the report from real estate management firm Colliers India said. After the Covid-19 pandemic, the real estate sector showed a 'V-shaped' recovery, with its credit and financial metrics outperforming other major industries, it added. From FY21 to FY25, bank credit to this sector has doubled from Rs 17.8 lakh crore to Rs 35.4 lakh crore, outperforming the average bank credit to other industries by 30 per cent. Nearly one-fifth of bank credit deployment was in real estate, indicating lender confidence. Further, the quality of loans has also improved significantly. The proportion of Gross Non-Performing Assets (GNPA) in the banks' loans to the construction industry significantly reduced from 23.5 per cent in March 2021 to 3.1 per cent in March 2025. 'During FY25, real estate sector had more credit rating upgrades than other economic sectors, demonstrating its robust financial health. The relatively higher credit quality of real estate loans is well supported by underlying strong demand-supply dynamics across multiple asset classes such as residential, commercial, industrial and warehousing, retail, hospitality, etc.,' said Badal Yagnik, Chief Executive Officer, Colliers India. Around 62 per cent of the top 50 listed real estate companies reported higher profitability margins for FY25 up from 23 per cent in FY21. Consistent strong demand, higher revenue realisation, and better operating efficiencies can be attributed to the increasing profitability of real estate companies. The debt-to-equity ratio has also improved in five years, the report mentioned. This led to the real estate sector outperforming the broader industry in the number of credit rating upgrades. Consequently, real estate companies increasingly access equity markets, signalling growing investor confidence in the sector. The real estate sector raised nearly Rs 138 billion in FY24 -- almost double the amount raised in the previous year. 'The strong momentum seen in 2024 has carried into 2025, with seven real estate IPOs raising more than Rs 76 billion until July. Moreover, the diverse listings across segments such as flex spaces, hospitality, office, residential, etc., and the anticipated upswing in SM REIT and REIT activity is promising for the entire real estate sector,' said Vimal Nadar, National Director and Head of Research, Colliers India.
Hans India
2 hours ago
- Hans India
Indian real estate sector turns optimistic for future growth amid robust sentiment: Report
India's real estate stakeholders appear to be responding positively to improving macroeconomic indicators, a report said on Tuesday, as the Sentiment Index rose to 56 in April-June period (Q2) from 54 in Q1 this year, snapping a four-quarter downward streak. The 'Future Sentiment Score' also climbed to 61 in the quarter from 56 a quarter ago, signalling a renewed sense of confidence and cautious optimism about the sector's performance in the next six months, according to the Knight Frank-NAREDCO 'Real Estate Sentiment Index for Q2 2025 (April-June).' This marks a significant shift in the mood of the Indian real estate sector. Following a year-long moderation in sentiment, stakeholders are beginning to look beyond short-term global uncertainties and are anchoring their expectations on India's structural economic strength, accommodative monetary policy, and robust demand in premium residential and office segments. 'Q2 2025 represents a turning point for the real estate industry with the recovery in both current and future sentiment scores reflects the sector's resilience and adaptability. As high-frequency indicators show sustained momentum, stakeholders are repositioning their strategies for long-term growth, especially in premium and high-yielding asset classes,' said Shishir Baijal, Chairman and Managing Director, Knight Frank India. One of the most encouraging signs in this quarter's index is the resurgence in developer confidence. The sentiment among developers has seen a sharp increase, with their Future Sentiment Score rising from 53 in Q1 to 63 in Q2 2025. This change is largely attributable to easing financing conditions, falling borrowing costs following a 100-BPS cumulative repo rate cut by the Reserve Bank of India in H1 2025, and a visible pick-up in high-ticket residential demand. Notably, non-developer stakeholders, which include banks, NBFCs, and private equity funds, have also reported a more positive sentiment this quarter, the report mentioned. Geographically, the rebound in sentiment is visible across all four regions of the country. The north zone, which had hit a post-COVID low of 48 in Q1 2025, recovered to a score of 55 in Q2 2025, buoyed by improving infrastructure connectivity, a resurgence in demand in Delhi-NCR, and a shift in developer focus toward premium inventory. The West zone saw an increase from 58 to 61, underpinned by continued strength in markets like Mumbai and Pune, which are seeing a consolidation of residential supply and sustained demand for office space. The South zone emerged as the strongest performer with a score of 63, up from 58, thanks to the commercial resilience of Bengaluru and Hyderabad and rising demand for lifestyle-led homes in key micro-markets. Meanwhile, the East zone held steady at 61, with Kolkata's residential segment showing consistent mid-market activity and buyer confidence, the report mentioned. The premium and luxury categories, particularly those priced above Rs 1 crore, continue to perform well. Developers are showing strategic maturity by focusing on select high-performing micro-markets. The sentiment around residential pricing is notably strong. In Q2 2025, 94 per cent of stakeholders expected prices to remain stable or increase at par with the previous quarter. 'This recovery is led by steady office leasing — particularly by GCCs and flex operators — and strong demand for premium housing. Regionally, sentiment has picked up across the board, with the South leading at 63,' said Hari Babu, President, NAREDCO.
