''The migrant population to cities such as Delhi and Mumbai have been increasing,'' Mr Ramachandran said, adding that about 40,000 people migrate to Delhi every year whereas in Mumbai, 55 per cent of the people live in slums, he said. ''The basic question before us is to provide affordable housing to these people.'' Significantly, the government through Jawaharlal Nehru National Urban Renewal Mission (JNNURM) has been instrumental in creating infrastructure in the cities which, in turn, would help the realty sector grow, the Secretary added.
He said a city with better drinking water facilities, solid waste management and sound urban transport could give a major boost to the real estate sector as well. ''We encouraged big cities to go for the Metro rail system and that is happening now with upcoming projects in Andhra Pradesh and Maharashtra and few other states,'' he said.
However, he reaffirmed that the recent liquidity crunch being witnessed in the market is not going to hamper projects in the urban development sector as bulk of the investment is made by the government, he said.