Here's How Migration Impacts Property Markets Worldwide

Immigration in large numbers often means stress for the host country especially in terms of real estate and infrastructure. Sample this. Sydney is running out of its capacity to accommodate immigrants. In New South Wales, the population grew by more than 1.23 lakh in a year by September 2017 of which one lakh were migrants. Prices thus have gone up. Reports suggest that the majority of the vote bank is in favour of restricting the number of migrants per year.

This means, every state, country deals with the problem of infrastructure and resource crunch and therefore, migration, immigration comes at a heavy cost. Here is what India is dealing with:

Fact-check

*Census 2011 data suggest that 45.36 crore Indians are internal migrants – a number that has gone up by 54 per cent since the previous Census of 2001.

*Around 70 per cent of these migrants were women, who may have moved owing to work or marriage. In fact, marriage was the most popular reason for migration followed by those migrated to stay with family. Next comes migration due to work.

*Data also showed a 98 per cent increase in Tamil Nadu’s migrant population and 77 per cent in Kerala- which means every third Indian is moving south.

*Indian cities with the highest number of migrants include Uttar Pradesh, Maharashtra, West Bengal, Andhra Pradesh and Tamil Nadu.

*In India, interstate migration doubled between 2001 and 2011 compared to the previous decade, growing 4.5 per cent annually.

*When it comes to India, Mumbai is among global cities of London, New York, Paris and Shanghai which are impacted by migration leading to price escalations and housing crisis.

Now here’s how globally property markets have felt the heat of immigration and internal migration:

*One of the publications by the Parliament of United Kingdom said, “Immigration is one of many factors contributing to more demand for housing and higher house prices. We note the forecasts that, if current rates of net immigration persist, 20 years hence house prices would be over 10 per cent higher than what they would be if there were zero net immigration. Housing matters alone should not dictate immigration policy but they should be an important consideration when assessing the economic impacts of immigration on the resident population in the UK.”

*In New Zealand, homes are drastically lower than the immigration-driven population growth states Macrobusiness. The Reserve Bank of New Zealand estimated that Auckland’s immigration and the resultant growth in population caused a home-supply shortfall of 10 per cent of Auckland’s housing stock. As of now, new Zealand is in desperate need of construction workers. More than 70 per cent of the skilled, long-term population is within the construction industry.

*UBC geographer, Daniel Hiebert studied that the Chinese and South Asians become homeowners at a higher rate than other immigrants or local population in Canada. Hiebert believes that immigrants affect housing affordability which is visible especially in the case of luxury properties.