Apr 13, 2023
A dusty urban trouble
Everywhere around us, we see construction works going on. Construction has already become a major contributor to global economic growth. Constructions of commercial and residential complexes, highways, bridges, airports, seaports, rails and metros keep our surroundings dustily vibrant. The residential construction in expanding urban premises goes up with new migrations. Buildings continue to sprout. Migrants and newly rich urbanites drive demands that eventually drive prices also up.
The real estate business boom has made it a lucrative investment destination for rich individuals and institutions. They bet heavily for heavy returns. The constructions go on so recklessly with heavy funding perhaps only to create a shortage of water and electricity. While rich real estate investors become richer, the unchecked boom puts immense pressure on utilities and natural resources. Can the government provide enough basic facilities to the new occupants of the new premises? The government has to take further steps to meet the growing demands for an uninterrupted supply of electricity and water. Every passing day urbanites face shortages of water and electricity. It is not only the power supply or water under strain but also other urban infrastructure. Dusty construction activities would never stop as “build-and-demolish to rebuild” becomes inevitable on the unstoppable influx of migrants.
The government will have to grope for solutions to this problem giving equal priority to the promotion of construction activities for economic development. Renewable energy sources and conservation of rainwater and seawater desalination are the other options.
Often it seems the volume of activities and real estate units built is more than the requirements. Exaggerated developments would necessitate excess resource consumption. It leads to wastage and depletion of resources. Such rampantly wasteful construction and excessive burning of financial resources lead to high inflation. Exorbitant house prices make a large part of the bottom of the pyramid homeless.
In most countries, there is no regulatory system to control rampant building construction activities. Rampant construction activities and unchecked prices necessitate government intervention with a regulation on the cost of delivery and volume of construction. The curtailment of the transfer of development rights (TDR) is essential to keep a check on unprincipled development.