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Effective Housing Demand in Mumbai (Bombay) Metropolitan Region

Author

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  • Piyush Tiwari

    (Housing and Building Economy Division, BRI, Ministry of Construction, Tsukuba 305, Japan, tiwari@kenken.go.jp.)

  • Kirit Parikh

    (Housing and Building Economy Division, BRI, Ministry of Construction, Tsukuba 305, Japan)

  • Jyoti Parikh

    (Housing and Building Economy Division, BRI, Ministry of Construction, Tsukuba 305, Japan)

Abstract

Housing policy formulation should be informed by a careful understanding of the behaviour of the urban housing market, as reflected by housing demand behaviour. Such basic information is important, not only for improved project design but also for the development of better sector-wide policies. The overall analysis in this paper stresses the importance of prices and income on the demand for housing in Mumbai metropolitan region. Estimates of housing demand function are given. In our analysis, we account for rent control in Mumbai which distorts rents. The results indicate that housing demand is elastic with respect to income and price. The income and price elasticities are around 1 and — 1 respectively. We also estimate income and price elasticities for different income classes. The paper concludes with policy prescriptions.

Suggested Citation

  • Piyush Tiwari & Kirit Parikh & Jyoti Parikh, 1999. "Effective Housing Demand in Mumbai (Bombay) Metropolitan Region," Urban Studies, Urban Studies Journal Limited, vol. 36(10), pages 1783-1809, September.
    • Handle: RePEc:sae:urbstu:v:36:y:1999:i:10:p:1783-1809
    DOI: 10.1080/0042098992827
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    References listed on IDEAS

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    1. Karmali,Nadeem M. & Aline Weng, 2022. "Housing Demand and Affordability in India : Implications for Housing Policy," Policy Research Working Paper Series 10031, The World Bank.
    2. Ali Osman Solak & Burhan Kabadayi, 2016. "Bounds Testing Approaches to Housing Demand in Turkey: Is There a Real Estate Bubble?," International Journal of Economics and Financial Issues, Econjournals, vol. 6(3), pages 1132-1135.
    3. Saudamini Das & Arup Mitra & Rajnish Kumar, 2017. "Do neighbourhood facilities matter for slum housing? Evidence from Indian slum clusters," Urban Studies, Urban Studies Journal Limited, vol. 54(8), pages 1887-1904, June.
    4. Orhan SANLI & Osman PEKER, 2023. "Effect of Inflation, Exchange Rate, Interest Rates and Income on House Sales: a Case of Turkiye," Journal of Economic Policy Researches, Istanbul University, Faculty of Economics, vol. 10(1), pages 37-60, January.
    5. Huseyin Karamelikli, 2016. "Linear and nonlinear dynamics of housing price in Turkey," Ekonomia journal, Faculty of Economic Sciences, University of Warsaw, vol. 46.
    6. Hussain Mohammed A. Al Obaid, 2020. "Factors Determining Housing Demand in Saudi Arabia," International Journal of Economics and Financial Issues, Econjournals, vol. 10(5), pages 150-157.
    7. Fontenla, Matas & Gonzalez, Fidel, 2009. "Housing demand in Mexico," Journal of Housing Economics, Elsevier, vol. 18(1), pages 1-12, March.
    8. Bandyopadhyay, Arindam & Kuvalekar, S V & Basu, Sanjay & Baid, Shilpa & Saha, Asish, 2008. "A Study of Residential Housing Demand in India," MPRA Paper 9339, University Library of Munich, Germany.

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