Delhi Is More Populated Than Any Emerging Economy City

Delhi's population grew faster than that of any emerging market economy from 1995 to 2010. But according to a report by Credit Suisse, from 2010 to 2025, many other cities including Dhaka, Kinshaha, Karachi and Mumbai are likely to grow faster than Delhi. On the other hand, according to Oxford Economics, Delhi's economy will grow faster than any Asian city from 2015 to 2019. Delhi's population and economy are growing rapidly, regardless of whether these estimates are true or not.

Usually, faster and wider real estate development happens in cities that pose huge potential for growth. Without faster real estate development, Delhi would not be able to grow rapidly enough in the next one decade. Delhi would not be able to accommodate the growth if it does not allow faster real estate development. For example, if foreign companies find it difficult to build offices in Delhi, or easily find accommodation for employees, the city's economy will not grow as fast as it should.

 

Private corporations have already chosen Noida and Gurgaon over Delhi, because land acquisition is much easier in these cities, especially in Gurgaon. Moreover, the floor area ratios (FAR) in Gurgaon and Noida are higher than in Delhi. (Floor area ratio or FAR is the ratio of the area constructed in a building to the area of a plot. For example, if FAR is 2, a 2,000 square feet building would be permissible on a 1,000 square feet plot.) Delhi will not able to attract similar private investment without raising the FAR significantly. No major city as populated as Delhi has FAR that ranges between 1 and 2.

But in some ways, Delhi is more equipped than other Indian cities. The national capital, for example, has Metro that extends to many parts of the city as well to the national capital region (NCR) , raising the value of real estate in Delhi. Other Indian cities do not have such a cheap and comfortable means of transportation. Delhi's Indira Gandhi Airport is ranked as one of the best airports in the world. Moreover, it is also closer to other fast-growing NCR towns like Noida and Gurgaon. As it is easier for multinational companies to operate out of Delhi, if the government makes the regulatory framework more friendly, we would see greater foreign investment in the businesses and more investment in housing. We would also see greater floor space consumption. This is more true of Delhi than other Indian cities like Mumbai because there is no scarcity of land in Delhi. Late economic journalist Sauvik Chakraverti once pointed out that Delhi has enough land for everybody in the city to live in a bungalow. So, there is no good reason why Delhi cannot equip itself to handle its growing urban population.