Housing

House is a centre and domestic device for mankind's moral and substance development
ever since the dawn of civilisation. Housing is one of the most important that we human
beings need. Adequate housing is essential for human survival with dignity. There are
many things that we would find difficult, if not impossible to do without good-quality
housing.
Since home life affects the very foundation of an individual's life, the house becomes an
important part of it and Housing is one of the top priorities for most people, regardless of
their income levels. Without the security and comfort of a home, there is no escape to the
difficulties resulting from poverty. Thus, it correctly said that housing is a fundamental
human right and key indicative of quality of living. Housing is essential for human
survival with dignity and everyone is entitled to it. Without right to housing, many other
basic human rights including right to family life and privacy, right to freedom of
movement, the right to assembly and association, the right to health and the right to
development. dequate housing is essential for human survival with dignity. Without a
right to housing, many other basic human rights will be compromised including the right
to family life and privacy, the right to freedom of movement, the right to assembly and
association, the right to health and the right to development. Housing is a key good for
determining the cost of living. The acute shortage of housing in urban areas is due to
increase in population !uben "arrido#$serte et al. %&'(&)('. Housing is one of the
primary human needs and is ne*t in importance to food and clothing. There has been
increasing concern about the housing condition of the poor in the deserted slums and
bustee settlements amidst the evident +poor blindness, in housing and investment
policies.
House is a place where we forget all our tensions and feel safe and secure. In Indian cultural context, a house holds a great significance. Most Indians
work tirelessly for days and nights hoping to own a house one day. A house is not just the compilation of woods and ricks. It is a place which
pro!ides a roof to our heads in harsh times and has kept us safe in all weather" people share a deep emotional ond and a sense of elonging with the
four walls of their house. #ther than the economic one, we feel a personal loss and a strong pain in heart when our house gets damaged in any mishap.
$e feel a great pleasure while designing its interiors and a sense of pride fills our soul when someone admires it. It is not just an asset ut the
ou%uet of our emotions and feelings which cannot e painted in green. &ife is no profit and loss statement. Hence our emotions though cannot e
weighed in terms of money, make our house the most precious asset of our life.
Source - !"# $ournal of %usiness and &anagement '!"#-$%&(
"")* ++,--.-,/. 0olume 1, ssue 1 ')ov. - 2ec. +34+(, 55 44-+.
www.iosr6ournals.org
www.iosr.ournals.org (( / 0age
An Assessment of the Indian Housing Finance System: Crucial
Perspective
1r. 2h. Hari "ovinda !ao(, 3r. 4. pparao&
4'#esearch scholar, 2epartment of &anagement "tudies, 0ignan's nstitute of
nformation Technology, ndia(
+'2epartment of &anagement "tudies, $)T78 7niversity, ndia(
Introduction
We live in a world which poses many threats to our security. The cultures that human
beings have created represent ways of adapting to these threats to security. Housing, as an
element of material culture is one such device to overcome threats against physical or
security to life which serves an important purpose by making the provision for shelter.
Thus, housing is the most important human need ne*t only to food, clothing and shelter.
5t is also regarded as important facet of economic development and where individuals
e*ercise ma*imum autonomy.
5t provides a place for the operation of many human activities. Home is a fundamental
demand for living and serves the common purpose like rela*ing after returning from
day6s tiring work, feeding the members, working, entertaining, leisure and many more
activities. The cultural history of humanity looked towards house as a place of safety
from both non#human and human threats. Housing is a place where individuals e*ercise
ma*imum autonomy.
7very person dreams for his own home which fulfills many requirements, providing
aesthetic satisfaction, mental health, physical health, comfort and safety, congenial
environment, shelter from the dangers of fire and vagaries of weather, it creates
conditions promoting good health such as pure water and disposal of all kinds of waste, it
provides adequate space of privacy.
Definition of Home
9Home is the social unit formed by a family living together.:
8 1errian Webster 3ictionary
9Home is the place where your parents live and where you grow up.:
8 1acmillan 3ictionary
Housing is a highly comple* product. 5t is a bulky, durable and permanent
product. 5t has fi*ed location, being used only in the place where it is built. 9nce built, it
tends to remain in e*istence for many years. The houses range from single 8 family
houses to many other types. Housing is both an economic and social process playing a
tremendous role in the economy. Housing has highly significant social implications
because it provides the shelter for our basic unit 8 the family. lmost every person is
affected in his day#to#day living by the kind of house in which he lives.1
5n popular imagination a house is a building with a kitchen, a bathroom, bedroom
and a lounge. 5t will be built sturdily enough to withstand natural elements, and it will
have an address on the register of the post#office. Some of the housing in 5ndia6s largest
cities fit this sort of description. :ut many city dwellers do not live in such places. Some
of the poorest are housed in space on a pavement, near to their low#paid work. 9thers
will have a roof, walls and a door, set in a wasteland along river banks, close to railway
lines, or in any place where there is a patch of land available.2
We have a many sided view of housing. 5t is a shelter, it is related to capital
markets, it is within state roles, it has connection to urbani;ation in development as a
whole, and it is somewhat tied to structural condition in the economy. 5t can be viewed as
consumption but to see it as production yields insights into its structural and gender
inequalities and its productivity in society.
Different definitions and understanding of housing leads to different approaches of
housing
ccording to 2hoguill %(<<=, p<=>) with an e*ample from ?ybia, @the failure to take
local cultural norms into account in ?ibya led to the construction of numerous high#rise
flats for previously nomadic :edouin who subsequently complained about the difficulty
of getting their animals into the lift so they could live with them on the upper floors.A
2hoguill6s statement infers thatB in providing housing for the urban poor, the basic
premise has been that the poor still have not satisfied the basic needs of physiology and
safety. They lack basic shelter and http-CCtbher.orgCinde*.phpCtbherCarticleCviewC&>C&=
would therefore willingly accept any shelter regardless of its design, location or
suitability to their lifestyle,
culture, tradition or religious beliefs. This approach represents the application of a
definition of housing that has produced housing that is basic and in some cases totally
unsuited to the particular situation.
lthough the dwellings physical structure may be of an e*ceptional standard, the price
may be out of reach of the intended recipients. 5n a number of cases, the dwellings may
also be poorly located in terms of .ob opportunities, and in some cases, too small for the
family %Turner, (<DEB ?eckie, (<<&). Housing is the total residential component of human
settlements and includes the house, services and utilities in the conte*t of the community,
as well as the social and cultural links. s such, housing cannot be detached from the
community in which it is based %dhikari, (<<&). This approach to housing was
generated by Fohn Turner %(<DE) and !obert Gichter %(<D&), who argued that the issue of
housing had been misinterpreted. 5n their opinion, not enough consideration was given to
consumer
needs on the demand side, while too much emphasis has been given to producers on the
supply side. The Turner and Gichter approach has since been e*panded by Turner in his
later works, e.g. Turner, %(<DE) and Turner %(<H&) and by other authors e.g. Stephen
1errett %(<H=) who carried out his work under the title @Housing 2onsumption
!equirements pproachA. This approach focuses on the needs of the beneficiaries, the
home occupants, and is based on four predicates- physical character of the dwelling,
dwelling control, environmental
locus and relative locus %1errett, (<H=). The @Housing 2onsumption !equirements
pproachA is concerned not only with the physical attributes of housing, but also with the
way housing is used, an issue of ma.or importance
in the acceptability of a housing unit %1errett, (<H=).
Definition of Housing
Turner6s %(<DE) definition of housing e*plains the product and process of housing.
Turner further highlighted the functional side of housing rather than the material sideB in
particular, a squatter can be considered as housing because he considers what is important
about housing, he notes is @not what it isI. but I.. what it doesA. The observation is
particularly relevant in the cities of the third world where resources %especially finance)
are e*tremely limited and the persons involved are in dire poverty.
9n the other hand :eyer6s %(<EJ) definition of housing is almost opposite to Turner6s
definition. ccording to :eyer, housing is permanent masonry work and
he does not recognise the social, cultural and economic aspect of housing. The World
Health 9rganisation6s definition of housing gives importance to the housing physical
environment which directly influences the user6s upbringing and psychology. The
definition of housing given by the 5573 addresses appropriate housing which is
supportive to user6s social, cultural, economic, physical, and psychological requirements.
:eyer %(<EJ) concluded it as a bulky, durable and permanent product which has a fi*ed
location being used only in the place where it is built. 9nce built it tends to remain in
e*istence for many years# frequently long after it has served its usefulness. 5t becomes
almost a part of land.
1umford %(<>H) remarks that the dwelling place is building arranged in such a fashion
that food may be easily prepared, served and stored, that the processes of hygiene and
sanitation facilitated, that rest and sleep may be en.oyed without disturbance from the
outside world and that the care of young may be carried on under favourable conditions
of companionship and supervision that the convincing social definition of house or home
is arrived at. These days priority is given to find out a house at least with basic
conveniences. 5mportance is given to
the dwelling place but also to surroundings. Therefore, housing includes far more than
living space and shelter. 5ts nature and value are determined by facilities it gives. These
facilities are many including neighbourhood facilities, access to education, health
amenities and security.
Knder the changing trend of housing, many people feel that their living conditions are
very important. 1any countries in the world have been viewing housing as not only as
individual6s concern but a social one. The housing policies and programmes of different
nations reflect the social aspect of the housing.
Gor the Hartmen %(<DJ), housing conditions should be understood to include not only the
physical units of dwelling unit but control over living conditions , the cost of housing in
relation to perceived value and ability to afford these costs, the conditions of surrounding
neighbourhood , social life and accessibility to community facilities and employment.
Thus, the availability and kind of social, medical facilities, .ob, shoping and
transportation facilities influence housing. Housing conditions then design the
individual6s place in the society and the progress of the country at large. 5n this sense the
housing conditions should consist of both the physical and social conte*ts which would
naturally reflect the living conditions of the people.
house can be many things in both appearance and in its meaning and significance to
those who live in there. 5t can be a place to sleep on a pavement . 5t can be small hutment
standing illegally on public or private land , built in dilapidated ways in dirty places. 5t
can be rented house where rents or installments are paid to owners. Gor public servants
who have responsibilities of site and service pro.ects, housing is the provision of plots
with water, sewerage and electricity connections. Thus, for the people living in metro
cities all these dwelling forms are housing.
5n affluent countries, housing can be conceptuali;ed in a manner which reveals its many
8sided associations to other factors and hence, its comple* nature determines the
development of comprehensive policies. Grom a concern for social .ustice and economic
efficiency, housing requires a simultaneous solution to questions of production
technology, the provision of capital and credit, accessibility for low#income households
and beneficial locations in respect to a local and regional network of public utilities,
social infrastructure and other social and commercial investments. The housing process is
involved in the development of housing stock and in provision of housing related
services. The houses are designed to the specifications accorded by building regulations,
estate planning and approval is obtained for houses, roads and other facilities and finally
they are occupied. 5n cities, both in the developed and the developing countries, it is
pro*imities to .obs, social infrastructure and healthy environments which give housing
much of its economic value. 5n the developing countries, housing would include illegal
structures, squatter encroachments, city pavements.
Housing need is upper most for every individual as it arises out of the basic human
requirement of having a shelter for protecting himself and his kith and kin from the fury
of nature and for leading a safe and dignified life. house or home is central to human
life because it has the capability to provide a locational identity to every individual and
can help in shaping their physical and psychological behaviors, social and community
interactions and also support a variety of economic activities, all of which can bring
prosperity and happiness to people and their neighbourhood. dequate housing facility
becomes an essential pre#requisite in every human settlement for facilitating integrated
social and economic development of individuals and communities in the larger interest of
national development.
3espite such universally accepted significance of housing, unfortunately for many of our
countrymen, adequate and affordable housing facilities still remain only a very distant
dream. Scarcity of developed landChousing sites, rising cost of construction materials,
high wage rates, shortage of services and amenities of drinking water and sanitation etc.
have pushed the housing costs beyond the reach of the common man. The result is that a
large number of people, especially those in the 7conomically Weaker sections and ?ow
income groups, are simply unable to afford a suitable shelter. This leads to a volatile
situation where people get compelled to resort to various spontaneous solutions to their
housing problems to satisfy housing needs. 5n the process, publicCprivate land areas get
encroached, illegal constructionsCcome up, prescribed building norms get violated and
generally temporary dwellings %Fhuggis L Fhompries ) without proper hygiene and
sanitation are constructed
The resultant over#crowded and unhealthy living environment further lead to social and
economic deprivation. ll ma.or urban centres in our country are victims of such housing
deficiency 8 slum syndrome.
Housing Situation in India
t the end of ('
th
plan, the total housing shortages in the country have been estimated to
be of &=.D million housing units. 9ut of the total shortage, the demand of 7WS and ?ow
5ncome "roups constitute to <<M. 3uring the ((
th
$ear 0lan, the total housing
requirement %including backlog) will be to the tune of &E.J> million units for DJ.'(
million households. The another factor which adds to this scenario is that out of the
e*isting housing stock, only J( M are considered durable houses. 5t means there is a
mismatch in demand and supply of housing units. 9n the other hand, the housing stock
contributes =.JM to the "30 and engages (EM of 5ndian workforce in construction and
transport sectors. 3espite the fact that homlessness, unemployment and poverty are some
of the crucial problems confronting the countrymen, it is estimated that J' million people
in our towns and cities are concentrating in slum and squatter settlements without
adequate and affordable housing facilities, about >J million people in the working age
group do not have appropriate opportunities and over &E' million are below poverty line
and don not have adequate income for survival. naly;ing the overall scenario, housing
and real estate development have large potential of generating huge employment for
skilled and unskilled workers.
5ndeed, the housing scenario is very gloomy and the 4ational Krban Housing and Habitat
0olicy &''D focusses the spotlight on multiple stakeholders namely the private sector, the
cooperative sector, the industrial sector for labour housing and the services C institutional
sector for employee housing. The government6s initiatives in this direction come through
various policy prescriptions for a partnership effort by public, private and cooperative
sectors supported by a set of fiscal measures for sustaining such partnership on a
continuous basis.
ccording to the 1inistry of Krban Housing and 0overty lleviation %&''D), the total
housing shortage in 5ndia as per &''( 2ensus was about &=.D( million 3welling Knits
%3Ks), out of which &(.DH million 3Ks relate to the 7conomically Weaker Sections
%7WS), while &.H< million 3Ks are required for ?ow 5ncome "roup %?5"). The housing
shortage during the ((
th
0lan period %&''D#(&) is e*pected to be &E.J> million 3Ks, out
of which .ust ='''' 3Ks will be in High 5ncome "roup %H5") and 1iddle 5ncome "roup
%15").
bout one#half of the population of 5ndia6s ma.or metropolitan centres, like 3elhi,
2alcutta, 1umbai and 2hennai are living in various types of illegal, squatter and slum
settlements. The proportion is even higher in other cities. 5t is a parado* that the number
of homeless, squatter and slum dwellers in the 5ndian cities is increasing in proportion to
public housing programmes. 5n spite of ever increasing investments in housing and urban
development in open defiance of planning legislation illustrates the e*tent to which
popular measures regulate the process of change and provide shelter to the poor.
The prevailing approach towards social housing is dominated by ,subsidy6 regime and the
programmes are based on the following premises-
(. Stratification of society according to economic levels.
&. To cover a vast proportion of population with limited investment, the si;e of
dwelling units, their specificationsC infrastructure norms are continually lowered
>. Standardi;ation of space, development and construction in consonance with the
budget, subsidy and investments
=. ?easeClegal stipulations to control transfer of subsidi;ed social housing
J. 1ass 0roduction of housing under government programmes.
E. 3evelopment of micro#financing, mortgaging, securiti;ations, lending and other
banking and legal instruments for social housing finance
There are various financial models that prevail in 5ndia-
(. 2ost recovery model
&. Subsidy model %direct, interest, non#financial like land, services etc.)
>. 1unicipal upgrading model % 1unicipal funding)
=. Krban :asic Services 1odel % 0lan Gunds)
J. 7nvironment improvement of urban slums model %0lan Gunds)
E. 2ommunity Savings 1odel
D. 2o#operatisation 1odel
H. ?and SharingC5n#situ !econstruction
Source- n 5nnovative approach towards affordable social housing, a.k. .ain
The housing shortage in 5ndia is a formidable challenge as the country is e*pected to
have a shortage of &E million homes by &'(&. The most of the homes are needed by
households in the economically weaker sections %7WS) and ?ower 5ncome groups
%?5"). This growing housing shortage is the result of a combination of factors such as
low purchasing power, high cost of housing loans, high poverty levels, increasing
populations and growing urbani;ation rates. 4early &HM of the country6s population
lives in cities and urban areas# double the level of urbani;ation at the time of
5ndependence in (<=D, and is e*pected to rise to ='M by &'&'. Whilst the recent
downturn did bring affordableCbudget housing segment in focus, that was more on
account of reduced salability of lu*ury housing pro.ects.
"iven the scale of the housing shortage coupled with the budgetary constraints of the
"overnment, it is apparent that public sector efforts will not suffice in fulfilling housing
demand. While the government has been making efforts to encourage the private sector
to step in for developing households for the poor, these players have been e*pressing
concerns regarding margins and infrastructure support by the public sector. 7ven though
private businesses have ventured into this segment, ma.ority are still reluctant to cater to
the mass housing demand, given the low profit margins. 1ass housing pro.ects remain
unviable for large number of private players, in light of the high risks involved, which
arise as a consequence of restrictive laws and regulations, high transaction costs, lack of
clear land titles, bureaucracy and lack of single window clearance.
The huge gap in supply and demand is not only on account of inadequate supply but also
on account of the pressure on availability of land. The total land supply available for
development has not increased at the same pace as the growth in the urban population.
The heavily regulated land sector in 5ndia has made it difficult to get clear land for
housing development which makes the cost of transactions relatively high, thereby
making the provision of affordable housing even more difficult. "oing by these trends
and the pace of additions in housing stock in the country, the e*isting housing shortage is
only e*pected to increase in near future. This is a key focus point for the government, as
it presents a significant challenge to its policy formulation and implementation channels.
However focusing away from roadblocks, mass housing investment still offers an
untapped market fo housing development from a private developer6s perspective.
Housing Shortage in India
*Housing shortage in million dwelling units
Shortage across leading states in the country
24.7
(2007)
26.5
(2012)
2.82 Tamil Nadu
1.85 ndhra !radesh
2.04 "est #engal
2.$8 %!
1.6$ &arnata'a
$.72 (aharashtra
1.66 )u*arat
1.2+ (adh,a !radesh
1.00 -a*asthan
1.1$ .elhi
Housing shortage (million dwelling units) State
Status of the Poor and the homeless in r!an India
vast number of the marginali;ed and the poor live in the urban centres, particularly in
the metropolitan cities, without shelter, facilities and amenities for bare e*istence,
deprived of basic needs and means of livelihood. 9ut of nearly &HJ million people who
inhabit in these settlements, nearly ('' million %>JM) are said to be living in slums and
destitution, mostly below the poverty line. Such marginali;ed people could be found
either on street, in slums or in other illegal and unauthori;ed habitations with no
semblance of civic amenities. They could be unorgani;ed daily wage earners,
construction workers, vendors and hawkers, rickshaw and cart#pullers aand loaders, street
and working children, or simply the vagrants and homeless. 1ost of these people,
including the homeless, are our active economic agents turning our urban centres into
,engines of growth6, while creating goods and services.
The issue of housing and housing finance has been receiving increasing attention over the
recent decade in the e*tant literature. There have been many studies revised on various
observations on this area, few of these namelyB housing is an essential element of life for
most human beings polari;ed by 4aik %(<H()&. ccording to F.0. Sah %&'(()>, Nhousing
is not a static but a growing problem and it was cited in 1anorama $ear :ook %(<<D)= as
the modern concept of housing does not limit the idea of housing merely to the provision
of shelter and it is an in an integral part of overall policy improvements of human
settlements and economic development. Orishnamachari %(<H')J, as stated in the
preamble of the 4ational Housing 0olicy, Nshelter is a basic human need and as an
intrinsic part of human settlement, is closely linked with the process of overall socio#
economic development. Housing is an element of material culture, is one such devices to
overcome threats against physical elements to lives and serves as an important purpose
by making the provision of shelter and portrays that housing is as an important precursor
of the national business cycle. 5n this view Some empirical e*ercises made on importance
of housing among others Satyanarayana %(<HD)E, 5ndia year :ook %(<HH)D, ndra 2.
"hent and 1ichael T. 9wyang %&'(')H, 3espande %(<DJ)< and !angwala %(<DD)(',
"opinath !ao %(<HH)((, 3r. 2. Harichandran %(<H<)(& , Solanki %(<H<)(>, highlighted
the magnitude of the housing problem in our country is so heavy, that it will require
considerable passage of time for the country to offer a sweet home to every family
in our nation. 2hacko %(<H<)(= was of the opinion that housing shortage in 5ndia in (<H(
was &( million units. 5n the beginning of the Dth five year plan in (<HJ, it was put as &=.D
million units. 1adhav !ao et al. %(<<J)(J suggested a multifaceted housing difficulty
like ours requires a concrete national attempt. min $. Oamete %&'(()(E, opined that the
housing problem has become synonymous with housing shortages. 7rwin 1lecnik et
al. %&'(')(D studied about the barriers and opportunities for the further diffusion of labels
for highly energy efficient houses. The 1a.or subsidised housing pro.ects in developing
countries specified by "on;alo ?i;arralde
%&'(()(H !ichard Harris and 2einwen "iles %&''>)(< have done tremendous work on
identified three phases in the evolution of international housing policy since (<=J- public
housing %(<=J8(<E's), sites#and#services %(<D&8(<H's), and market enabling %(<H's8
present. 5n the opinion of 4ickell and 3orsey %(<DE)&', the three methods of financing
home ownership are cash, cash and credit and contract method. !.1. :uckley %(<H<)&(
portrayed that :ank lending for housing finance during the period from (<D& to (<H<.
1un.ee et al., %(<<')&&
opined that credit flows into the housing sector originates therefore from formal or
informal sector like, budgetary allocations, of central and state governments, financial
institutions like the ?52, Knit Trust of 5ndia, 2ommercial :anks, provident funds and
0ublic Sector 5nstitutions such as HK329.s cited by Tiwari %&'(&)&>,
Housing finance in 5ndia has grown at a rapid pace during the last two decades. However,
the share of outstanding housing loans as a percentage of "30 stood at only D.>M in
&''J. Hence, this study emphasi;es the importance of affordable housing.
1acroeconomic stability and the housing sector are ine*tricably linked. 5t is
estimated that for one 5ndian !upee %!s.) invested in housingB !s. '.DH gets added to the
gross domestic product of the country. The housing sector has strong backward and
forward linkages to over &J' ancillary industries. So that this is an attempt to make a
conceptual framework about 5ndian housing finance system.
Housing condition In India
Housing conditions are a key indicator of socio#economic development. The 4ational
Sample Survey 9rganisation %4SS9) uses the classes, katcha, semi-pucca and pucca to
differentiate between the types of homes in 5ndia. katcha house is built with non#
durable materials like unburnt bricks, mud, thatches, leaves and bamboo. pucca house
is one built with permanent materials like oven burnt bricks, concrete, stone blocks,
cement, iron or other metal sheets and timber. semi-pucca house is built with both
katcha and puccamaterials.
"a!le 1: Percentage Distri!ution of Households #ith D#elling nits !y "ype of
Structure
"ource* )H% Trends and 5rogress, +33.; )ational "ample "urvey !rganisation ')""!(
'+33.(.
<5ro6ected charts
Table ( demonstrates that the ma.ority of households in 5ndia live in either pucca or
semi#pucca homes %4H:,
&''=)&E. This situation has improved gradually over the years. 5n &''&, >E percent of
those in rural areas lived in pucca homes as opposed to >& percent in (<<>. 5n urban
areas, the percentage of pucca homes increased to DD percent in &''& from D= percent in
(<<> %4SS9, &''=).
"enure status of Housing in ur!an and rural area in India: The availability of shelter
is a basic human need %1. 0acion, &''<)&D. t one e*treme, housing is regarded as a
consumer good rather than a social entitlement. There is a preference amongst the
ma.ority of 5ndian households to own a home rather than opt for renting %Oerl et.al,
(<DD)&H. 5n rural areas, availability of land is not as critical an issue as upgradation and
improvement of the housing conditions along with civic amenities and other basic
infrastructure facilities. Thus over a ='#year period, the trend of a predominance of
ownership of homes in rural areas has remained unchanged. 5n urban areas, the trend has
distinctly changed as more people have gradually begun to opt for ownership as against
rental housing %3oebele and William ., (<H>)&<. The reasons are two#fold- first, rent#
control laws in urban areas have discouraged new rent#based units from coming into the
market. Secondly, an increase in housing finance options available over the years has
enabled more people to buy a home. The tendency to own a house has shown an
increasing trend among the urban households %4H:, &''=)>'. The percentage of houses
owned by the rural households is above <J percent.
Housing status
Unlike certain industries where there has been some sort of stagnation in the recent
past, the scenario is different in the case of housing industry. The housing sector in
the country which was passing through a recessionary phase has witnessed dramatic
changes over the last few years coupled with the much needed recovery from the
recessionary trends and gaining a never-before buoyancy. In a lackluster economic
scenario, housing is among a few sectors to have defied the adverse trend. The last
couple of years saw the fast transformation of housing sector into a crucial sector of
the economy. The reversal of the recession in real estate and housing sector set in
motion a few years back has been gaining further acceleration.
A host of factors have contributed to the buoyancy in the housing sector. In its
continued thrust on housing, the Union Budgets during the past few years have taken
several measures to etend fiscal incentives and simplify procedures that have gone a
long way in giving a significant impetus to the housing sector. Apart from the
!overnment support, factors such as increasing number of dual income families, high
salaried employees with high purchasing and borrowing powers, bottoming out of
property prices, decreasing interest rates, easy availability of home finance, a stock
market shy of regaining its earlier momentum etc. have contributed in a significant
measure to the resurgence of the housing sector. The !overnment of India have also
been adopting several measures to encourage "#I investment in housing and real
estate development for promoting the flow of foreign echange to the country.
Housing in India
According to the Ministry of Housing and Urban Poverty Alleviation (MHUPA), the housing shortage
Supportive loan
restructuring for
7WSC?5"
?ower interest rates, longer repayment tenure and a lower
percentage of down payments of the total loan taken
?and at
subsidi;ed rates
?and at low rates to be made available to private players,
with support infrastructure to develop mass housing for
?5"C7WS
7ffective
reservation for
7WSC?5"
State planning policies should effectively implement
reservation of minimum area to develop housing for ?5",
laid down as &JM in the 4ational Housing 0olicy.
Transparency in
allocation and
usage of funds
1ore transparency is required in distributing subsidies and
allocation and usage of funds meant for mass housing
development
doption of
5nnovative
technologies
5nvest in innovative construction technologies such as pre#
fabricated construction to promote mass housing at
subsidi;ed construction costs.
$hat can !e done to tac%le the shortage&
in urban India has been estimated at 18!8 million households living in unacce"table d#elling units
in $%1$, a decline of &'( million from the $%%! estimation of $)!1 million *he dro" in housing
demand corres"onds to the "eriod, #hich has seen the shar"est decline in decadal gro#th rate of
"o"ulation by ('%+ from $1&)+ (1''1,$%%1) to 1!-)+ ($%%1,$%11)
*he shortage in the housing segment is heavily s.e#ed to#ards the bottom of the "yramid, #ith
more than half the shortage (&-18+) arising due to the economically #ea.er section (/01),
follo#ed by the lo#er income grou" (2I3) at ('))+ and a mere )(8+ estimated for the middle
income grou" (MI3) and above(
( 4e"ort of the *echnical 3rou" on Urban Housing 1hortage (*3,1$) ($%1$,1!), 3overnment of India,
Ministry of Housing and Urban Poverty Alleviation, 5ational 6uildings 7rgani8ation, $%1$