Urban Housing (Subject Code: 2714801)
Exam Date: 15-12-2014
P. G. CENTER IN CIVIL ENGINEERING DEPARTMENT
SARVAJANIK COLLEGE OF ENGINEERING & TECHNOLOGY, SURAT
MASTER OF ENGINEERING CIVIL (TOWN AND COUNTRY PLANNING)
GUJARAT TECHNOLOGICAL UNIVERSITY
ME Civil (T&CP), Semester – I,Dec 2014
Prof . Sejal Bhagat
Prof . Naresh Rokad
Prof. Himanshu Padhya
Civil Engg. Department
GRADUATE REPORT ON
Housing Finance System For India
Table Of Contents
Name Of Topic
2 Housing Scenario In India
3 Housing Scenario In India
4 Housing: The Problem Summery
5 The Role of Government
6 Functions of Urban Local Bodies
7 Concluding Remarks
• Housing being one of the three basic needs of life always
remains in the top priorities of any person, society and
• The problem of space, privacy, security and sanitation leads
to social, economic and environmental degeneration.
• Housing finance may be defined as the need to reconcile the
three partially conflicting objectives of affordability of
households, viability of financial institutions and resource
mobilization for the expansion of housing sector and of the
Housing Scenario In India
• The development of satisfactory housing has always been the
priority of both the central and state governments.
• A rapid rise in population results in higher demand of
dwelling units for residential purposes.
• As the country enters an era of economic growth, economic
liberalization and prosperity, the country seem not yet ready
to house the growing population and provide work and
services and environmental infrastructure for all.
• The twin problems of affordability and availability prevail in
most part of the country.
Population and Housing Stock
Source: Census 2001.
Rural Urban Total
1981 1991 2001 1981 1991 2001 1981 1991 2001
523.87 628.70 742.00 159.46 217.60 285.00 683.33 846.30 1027.00
81.88 108.47 135.10 26.07 38.74 52.06 107.95 147.21 187.61
Housing: The Problem Summery
• Rapid population growth coupled with rapidly increasing
urbanization and widespread poverty have created a serious
shelter problem in India, contributing to the proliferation of
slums, increased demand for urban infrastructure and
services, and declining quality of life for low-income
• With the exception of government-sponsored housing
programmes, formal housing finance institutions (HFIs) are
reluctant to lend to low-income households because of
factors such as the relatively high transaction and servicing
costs, irregular and unsubstantiated income sources, and the
absence of collateral in the form of title to property.
The Role of Government
• The Government has adopted the role of a facilitator instead
of a provider.
• One of the major obstacles facing the public initiative for
housing is the unrestrained population explosion. Further, the
constant migration of people from rural areas to cities in
search of jobs puts housing and basic services in the urban
areas under considerable strain.
• The facilitating role of the government and other financial
institutions along with private intervention in facilitating
finance to address the housing needs of the society is an
indication of the significance of the sector in overall
development of the economy.
Indian Financial System
• The Government implemented many of its schemes through
state housing boards that allocated serviced land and housing
to individuals based on social welfare objectives, not
• The 1970s marked two significant developments in the
housing finance sector. A public sector housing company,
HUDCO, was established in 1970, and the first private
housing finance company (HFC), HDFC, was established in
• HUDCO served as the principal institution to finance
Government-supported housing programmes
• HDFC introduced mortgage financing to India and has
become the largest and most successful HFC in the country.
Group Sub Group Channel
Institutions NABARD P
The Housing Finance System in India
Functions of Urban Local Bodies
• Given the importance of functions and responsibilities
entrusted to the local self-governments, the issues relating
institutional structure of ULBs gain tremendous significance.
• These structures are not uniform across states or even
metropolitan (or district) areas, and are plagued with political
and administrative problems.
• These ULBs make the successful execution of devolved
functions a challenging task for the local bodies.
• Urban Planning Including Town Planning
• Planning For Economic And Social Development
• Roads And Bridges
• Water Supply For Domestic, Industrial And Commercial
• Public Health, Sanitation Conservancy And Solid Waste
• Slum Improvement And Up-gradation
• Urban Poverty Alleviation
• It should be noted that at the time of Independence,
India’s financial system was rather small although both
savings and investment rates were very low.
• The rapid increases in population and migration of rural
people to urban areas and expansion of industrial and
commercial activities have created huge demand for
housing in both urban and rural centres.
• Indian government had also decrease the demand for
housing through formulated five year plans.
• National Housing Bank (2002) “Report on Trend and Progress
of Housing in India, June 2002”, India Habitat Centre, Lodhi
Road, New Delhi – 110 003.
• Ferguson, Bruce (2001) “Process, Policy, and Public-Private
Partnerships in Housing in Developing Countries: What Can
the United States Learn?”, Housing Policy in the New
Millennium, 07FERGUSON.PDF, pp. 175-201.
• financingcities.ifmr.co.in/ : Financing Small Citites