What is Urbanization?

Kishan Thakkar K


The term “urbanization” refers to the increasing population of people in urban areas. It is predicted that by 2050 about 64% of the developing world and 86% of the developed world will be urbanized.

Hannah Merry @ IBM

Definition of Urbanization

Urbanization (or urbanization) refers to the population shift from rural to urban areas, the corresponding decrease in the proportion of people living in rural areas, and how societies adapt to this change.


According to a survey by the UN State of the World Population report in 2007, by 2030, 40.76% of the country’s population is expected to reside in urban areas.

The Census of India has broadly categorized urban areas in into following types:

i) Statutory towns

all places with municipality, corporation, cantonment board, notified town area committees, etc.

ii) Census towns

all villages with a minimum population of 5000 persons in the preceding census, at least 75 percent of male main working population engaged in non-agricultural activities and a population density of at least 400 persons per sq. km.

iii) Urban Agglomerations (UAs)

a continuous urban spread comprising one or more towns.

iv) Urban Growths (OGs)

areas around a core city or town, such well recognized places like railways colony.

Below is the list of most populous cities in India. 

Causes of Urbanization:

  • Agricultural Development
  • Industrialization
  • Market Forces
  • The emergence of towns as socio-cultural centers
  • Improvement in transport and communication

Impact of urbanization on real estate

The process of urbanization is closely interlinked to the development of the real estate sector. When people move from rural areas to urban areas, the demand for housing increases and the development of the real estate markets in the urban agglomeration areas is encouraged.

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