SUB THEME -REAL ESTATE DEVELOPERS AND

AFFORDABLE HOUSING SCHEMES

TITLE - PROBLEMS IN IMPLEMENTATION OF AFFORDABLE

HOUSING SCHEMES

By- VARUN PANDIT1* & DEVINA BHANDARI2**

Presenting Author’s:- varunsameer98@gmail.com & davibandari@gmail.com

ABSTARCT
“A house is much more than a shelter. It should lift us spiritually and emotionally”
- John Saladino

A house is just not a built up structure of cement and bricks, but it also includes a family’s
emotion, sentiments and hard work. India is a developing economy therefore there is a huge
chunk of urban migration of population, from rural areas to cities and towns. This migration has
resulted in congestion in urban areas, especially such as Mumbai, Delhi, Bengaluru, etc, due to
lack of housing facilities. Ipso facto, it has caused an unprecedented increase in housing demand,
catering to all segments of society i.e. the affluent, middle class, lower middle class and the poor.
Urban development is an important and crucial economic tool, since it plays a significant and
vital role in contributing towards a country’s overall development effort. A real estate developer
helps in developing urban areas by converting ideal housing plans, from paper to real estate
property, by buying land or by financing or building or hiring builders to implement real estate
projects conceived by him. The real estate sector is fast growing and is likely to contribute 13%
share towards our country’s GDP by 2025. It is expected to reach a market size of US $ 1Trillion
by 2030, from US $ 120 Billion in 2017.3 A quantum leap indeed.

Urban migration brings in lots of poor from different parts of India, primarily from Bihar and
UP, to urban areas in search of jobs, money and shelter. This has resulted in lack of housing
facilities for poor and an increase in slum areas, since poor people are constrained to shift there.
Therefore, the State has endeavored to introduce affordable housing schemes to this segment.
Affordable housing schemes are schemes introduced by Government of India or the State
Government, which provide affordable/ low rates of housing for the Economically Weaker
Sections and Low Income Group segments of population, in urban areas.

1
Student, B.B.A., LL.B. (H), Amity Law School, Amity University, Noida, UP.
2
Student, B.B.A., LL.B. (H), Amity Law School, Amity University, Noida, UP.
3
https://www.ibef.org/industry/real-estate-india.aspx
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 But the real estate developers primarily focus on High Income Group and Middle Income Group
sections of the population, to maximize their profits. This results in huge gaps in demand and
supply of affordable houses guaranteed under Affordable Housing Schemes due to inability of
the government in meeting the burgeoning affordable housing demands and the indifferent
attitude of real estate developers in undertaking this social responsibility. But there is a ray of
hope, since public and private real estate developers have now started to join hands together to
narrow the gap between the demand and supply of affordable housing.

Therefore, our research paper will dwell upon problems in implementation of affordable housing
schemes and the role of both real estate developers and the government, in making affordable
housing schemes easily available.

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