AFFORDABLE HOUSING IN INDIA

AN INCLUSIVE APPROACH TO SHELTERING THE BOTTOM OF THE PYRAMID

Submitted to : ms vijaya

Submitted by:
B.PRAMOD KUMAR
RESEARCH BY: 10011BAO25
Jones Lang LaSalle B.TECH(PLG),VI SEM
YEAR:2012 JNA&FAU,SPA
 AFFORDABLE HOUSING IN INDIA
Urbanisation and Housing Shortage in India.
As per 2011 census, the country had a population of 1,210.98
million, out of which, 377.10 million (31.16%) lived in urban
areas.

During 2001-2011, the urban population

of India grew at a CAGR of 2.8%, resulting
in the increase in level of urbanisation from
27.81% to 31.16%.

This growing concentration of people in urban areas has led to

problems of land shortage, housing shortfall and congested transit
and has also severely stressed the existing basic amenities such as
water, power and open spaces of the towns and cities.
 AFFORDABLE HOUSING IN INDIA
According to the 2011 census, the housing stock in urban India
stood at 78.48 million for 78.86 million urban households.
Urbanisation has resulted in people increasingly living in slums and
squatter settlements and has deteriorated the housing conditions of
the economically weaker sections of the society.
According to estimates of the Technical Group constituted by the Ministry
of Housing and Urban Poverty Alleviation (MHUPA), the urban housing
shortage in the country at the end of the 10th Five-Year Plan was
estimated to be 24.71 million for 66.30 million households.
The group further estimated that 88% of this shortage pertains to houses
for Economically Weaker Sections (EWS) and another 11% for Lower-
Income Groups (LIG).For Middle- and High-Income Groups (MIG and
HIG), the estimated shortage is only 0.04 million.
 AFFORDABLE HOUSING IN INDIA

Source: Report of the Technical Group (11th Five Year Plan: 2007-12) on
Estimation Of Urban Housing Shortage.

INFERENCE: housing percentage shortage in EWS is 99.9 % which is double

than the estimated number of households.
Where as in HIG and MIG it is so less 0.2% only.
AFFORDABLE HOUSING IN INDIA
Affordable Housing Defined:
There is no clear-cut definition of the term affordable, as it is a
relative concept and could have several implied meanings in
different contexts.
According to the RICS Report on Making Urban Housing Work in
India, affordability in the context of urban housing means provision
of adequate shelter on a sustained basis, ensuring security of
tenure within the means of the common urban household.
According to the Task Force on Affordable Housing set up by
the MHUPA in 2008, affordable housing for various segments is
defined by size of the dwelling and housing affordability derived by
the household income of the population
 AFFORDABLE HOUSING IN INDIA
Definition of Affordable Housing MHUPA (2011)

According to the KPMG Report on Affordable Housing A Key Growth Driver in the
Real Estate Sector, affordable housing is defined in terms of three main
parameters, namely income level, size of dwelling unit and affordability.
AFFORDABLE HOUSING IN INDIA
Jones Lang LaSalles Definition of Affordable
Housing.
Minimum volume of habitation.
Provision of basic amenities.
Cost of the house.
Location of the House.
 ISSUES IN THE DEVELOPMENT OF
AFFORDABLE HOUSING
Developing affordable housing in Indian cities faces significant
challenges due to several economic, regulatory and urban issues.
Excessive Control on Development of Land Creates Artificial
Shortage.
Lack of Marketable Land Parcels.
Titling Issues and Lack of Information.
Rising Threshold Costs of Construction.
Lack of Access to Home Finance for Low-Income Groups.
ISSUES IN THE DEVELOPMENT OF
AFFORDABLE HOUSING
Regulatory Constraints
Lengthy Approval and Land Use Conversion Process
The process of real estate development is particularly affected by
the efficiency of urban local bodies, which undertake city planning,
deliver utility services and regulate controls on development through
approvals.
India is ranked 177 out of 183 countries with respect to dealing with
construction permits2, which indicates the challenge developers face in
India in development of real estate.
Lack of Clarity in Building Bylaws and Guidelines.
Continuation of Archaic Laws
ISSUES IN THE DEVELOPMENT OF
AFFORDABLE HOUSING
Multitude of Statutory Approvals adds 2-2.5 Years to the Pre-
Construction Process

INFERENCE:construction process of statutory approvals adds 2-2.5 years in india

POLICY FRAMEWORK AND
REGULATIONS FOR AFFORDABLE
HOUSING
Central Level Schemes
National Urban Housing and Habitat Policy (NUHHP), 2007
Jawaharlal Nehru National Urban Renewal Mission (JNNURM)
Basic Services for the Urban Poor (BSUP)
Integrated Housing and Slum Development Programme.
Interest Subsidy Scheme for Housing the Urban Poor (ISHUP).
Rajiv Awas Yojana.
THE PRIVATE PLAY TO
AFFORDABLE HOUSING IN INDIA
MAJOR HUBS OF AFFORDABLE
HOUSING DEVELOPMENT

Location of Projects and Their Distance from City Centre

Mumbai and NCR have affordable housing projects located 6575 km
away from the city centre. On the other hand, Ahmedabad and Kolkata
provide better proximity, with projects located at a distance of 1520 km
from the city centre.
Bangalore, Pune and Chennai also have projects after a distance of
2530 km from the city centre.
Major Developers in the Segment
Amongst the developers, Tata Housing (Shubh Griha) and VBHC are
entirely focused on low-income affordable housing and have already
launched multiple projects across cities.
Mahindra Lifespaces, TVS Housing
 INCOME LEVELS AND HOUSING
AFFORDABILITY
Disposable Surplus for House Purchase in Various Income Groups

INFERENCE:percentage of surplus of income is high when compared with

others.
SENSITIVITY OF RENT AS PERCENTAGE OF INCOME FOR
PERSONS OF VARIOUS INCOME GROUPS

INFERENCE:rent as a percentage of income is less for income group 2-3 lakhs

and it is high in income groups income 1000000 more.
DEMAND-SUPPLY DYNAMICS OF HOUSING FOR VARIOUS
INCOME GROUPS

INFERENCE:Share of demand is high for income group 2-3 lakhs per annum
and supply is low when compared to other income groups.

Source: john lang lasalla Research

HOME LOAN DISBURSALS BY HOUSING FINANCE COMPANIES
(HFCS)

INFERENCE:The home loan for above 10 lakhs is more every year.

ESTIMATED CONSTRUCTION COSTS FOR LOW-INCOME
HOUSING

INFERENCE:for one sq ft ,the selling price will be Rs 1,400 to 1,700.

The Landscape of Affordable Housing Development (units priced < INR 10
Lakhs) in Major Indian Cities
MAJOR HUBS OF AFFORDABLE
HOUSING DEVELOPMENT

INFERENCE: distance from centre of the city plays an important role creating
affordable housing hubs .
INSTITUTIONAL APPROACH
TOWARDS AFFORDABLE HOUSING
 NEWS PAPER ARTICLES

MHADA joins hand with private Activities of affordable housing

developers. by NGO.
 CONCLUSION
Historically, housing for the poor and the economically weaker sections
of the society ( EWS) has been provided by the government under
various welfare schemes.
Nevertheless, this is insufficient compared to the existing shortage in
the segment," says report on urbanization and housing shortage in
India by Jones Lang LaSalle India.
The main reasons for rise in shortage in affordable housing on the
supply side is lack of availability of urban land, rising construction costs
and regulatory issues while lack of access to home finance for low
income groups are constraints on the demand side.