The document discusses affordable housing in India. It notes that India faces a major shortage of affordable housing, with 88% of the estimated shortage being for economically weaker sections. Several issues hamper development of affordable housing, including lack of land, high construction costs, and lengthy approval processes. While government schemes aim to address affordable housing, there is still a large gap between supply and demand. Private and non-profit developers have begun helping to develop more affordable housing projects.

1. AFFORDABLE HOUSING IN INDIA
AN INCLUSIVE APPROACH TO SHELTERING THE BOTTOM OF THE PYRAMID
Submitted to : ms vijaya
Submitted by:
B.PRAMOD KUMAR
10011BAO25
B.TECH(PLG),VI SEM
JNA&FAU,SPA
RESEARCH BY:
Jones Lang LaSalle
YEAR:2012

2. 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.

3. 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.

4. 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.

5. 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

6. 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.

7. AFFORDABLE HOUSING IN INDIA
Jones Lang LaSalle’s Definition of Affordable
Housing.
 Minimum volume of habitation.
 Provision of basic amenities.
 Cost of the house.
 Location of the House.

8. 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.

9. 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

10. 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

11. 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.

12. THE PRIVATE PLAY TO
AFFORDABLE HOUSING IN INDIA

13. MAJOR HUBS OF AFFORDABLE
HOUSING DEVELOPMENT
 Location of Projects and Their Distance from City Centre
 Mumbai and NCR have affordable housing projects located 65–75 km
away from the city centre. On the other hand, Ahmedabad and Kolkata
provide better proximity, with projects located at a distance of 15–20 km
from the city centre.
 Bangalore, Pune and Chennai also have projects after a distance of
25–30 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

14. 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.

15. 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.

16. DEMAND-SUPPLY DYNAMICS OF HOUSING FOR VARIOUS
INCOME GROUPS
Source: john lang lasalla Research
INFERENCE:Share of demand is high for income group 2-3 lakhs per annum
and supply is low when compared to other income groups.

17. HOME LOAN DISBURSALS BY HOUSING FINANCE COMPANIES
(HFCS)
INFERENCE:The home loan for above 10 lakhs is more every year.

18. ESTIMATED CONSTRUCTION COSTS FOR LOW-INCOME
HOUSING
INFERENCE:for one sq ft ,the selling price will be Rs 1,400 to 1,700.

19. The Landscape of Affordable Housing Development (units priced < INR 10
Lakhs) in Major Indian Cities

20. MAJOR HUBS OF AFFORDABLE
HOUSING DEVELOPMENT
INFERENCE: distance from centre of the city plays an important role creating
affordable housing hubs .

21. INSTITUTIONAL APPROACH
TOWARDS AFFORDABLE HOUSING

22. NEWS PAPER ARTICLES
MHADA joins hand with private
developers.
Activities of affordable housing
by NGO.

23. 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.