Which of the following statement (s) is/are correct?

The correct answer is option 1: If facilities like housing, provision of basic services and other characteristics has improved, then this is considered as development.

Statement 1: If facilities like housing, provision of basic services and other characteristics has improved, then this is considered as development. — Correct. Improvement in quality of life and basic facilities indicates development.

Statement 2: Cities can only grow in a positive manner. — Incorrect. Cities do not only grow in a positive manner. If a city's population explodes rapidly but it results in the sprawling of overcrowded slums, lack of clean sanitation, rising crime rates, and failing infrastructure, the city is experiencing positive growth (in numbers) but negative qualitative regression.

Statement 3: There can a negative development also. — Incorrect. Development is always value positive and cannot be negative. There is no such thing as "negative development" in geographical terms.