Economy

1. Graduate Report Presentation on
“Affordable housing in India”
ME – TCP, Year – I, Semester – I
Under the subject of
URBAN HOUSING
(Subject Code : 3714802)
(2018-19)
Prepared by :
VAKHARIA SIDDHI
Guided by :
Prof. Zarana H. Gandhi
SARVAJANIK COLLEGE OF ENGINEERING & TECHNOLOGY, SURAT
FACULTY OF CIVIL ENGINEERING
MASTER OF ENGINEERING (TOWN AND COUNTRY PLANNING)
Affiliated with
GUJARAT TECHNOLOGICAL UNIVERSITY
Prof.(Dr.) Jigar K. Sevalia
Faculty & Head
Faculty of Civil Engineering,
SCET

2. Contents
• Introduction
• Needs of Affordable Housing
• Housing Shortage in Urban Area
• Demand for affordable housing
• Some of the factors that affect the supply and demand of
housing stock
• Critical issues in the affordable housing sector
• Policy framework and regulation
for affordable housing
• References

3. Introduction
Affordable Housing Defined as:
• 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.
• Jones Lang LaSalle’s Definition of Affordable Housing.
– Minimum volume of habitation.
– Provision of basic amenities.
– Cost of the house.
– Location of the House.

4. Definition of Affordable Housing – MHUPA (2011)
 As per Budget, 2018
Government of India defined in 2018 Budget that Houses up to 30 sq.
Mtrs carpet area in 4 metros and 60 sq.mtrs carpet area in other cities as
affordable Housing and also gave Infrastructure status to this segment.
Source: Guidelines for Affordable Housing in Partnership (Amended), MHUPA, 2011

5. Needs of Affordable Housing
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.
• 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.

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

7. Demand for affordable housing in India
Source: Deutsche Bank Research

8. Source: Ministry of Housing Poverty and Urban Poverty
Alleviation

9. Some of the factors that affect the supply and demand of
housing stock
• Demographic and behavioural factors
• Migration (to cities and potential employment)
• Increased life expectancy
• Building codes
• A greater propensity for people to live alone
• Young adults delaying forming their own household
(in advanced economies).
• Exclusionary zoning

10. Critical issues in the affordable housing
• Scarcity of Land
• Scarcity of marketable land parcels
• Tilting issues
• Rising costs
• Regulatory Constraints
Others,
• 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.
• Lengthy Approval and Land Use Conversion Process

11. • Following benefits are there for affordable Housing on account of
Infrastructure status and Governments new initiatives
i. The developers will get 100% tax exemption for affordable Housing
projects approved between June 2016 & March 2019 and completed
within 5 years from the date of approval. However, MAT is applicable
which they can adjust in later year profits. The service taxis also
exempted for affordable Housing.
ii. Developers can access FDI which will be cheaper

12. POLICY FRAMEWORK AND REGULATION
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

13. Concluding Remark
• Historically, housing for the poor and the economically weaker sections of
the society ( EWS) has been provided by the government under various
welfare schemes.
• 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.

14. References:
• Census of India (2011)
• World bank (http://www.worldbank.org.in/)
• Guidelines for Affordable Housing in Partnership (Amended), MHUPA,
2011
• Report of the Technical Group (11th Five Year Plan: 2007-12)
• Affordable housing: Policy and practice in India by KalpanaGopalan
[IIMB Management Review ,Volume 27, Issue 2, June 2015,Pages 129-140]

15. Thank You..