Affordable Housing

Ar. Ravindra Patnayaka,

B.Arch, M.Tech Planning
Assistant Professor,
GITAM SCHOOL OF ARCHITECTURE,
Visakhapatnam.
 Affordable Housing Defined

Jones Lang LaSalle’s Definition of Affordable Housing.

Minimum volume of habitation.

Provision of basic amenities.

Cost of the house.

Location of the House.

Affordable Housing Defined 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.

Affordable Housing is a Relative Term in different contexts.

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
 Definition of Affordable Housing in INDIA
– 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.
Case Specific Charecteristics
 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.
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.

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

 Strategic Multitude of
Statutory Approvals for Housing Projects in India

INFERENCE:construction process of statutory approvals adds 2-2.5 years in india

Factors effecting Affordable Housing
Home Loan Disbursals by Housing Finance Companies
(HFCs)

INFERENCE: The home loan for above 10 lakhs is more every year.
Estimated Construction Costs for Low-Income Housing

INFERENCE: for one sq ft , the selling price will be Rs 1,400 to 1,700.

Major Hubs of Affordable Housing Development

INFERENCE: distance from centre of the city plays an important role creating
affordable housing hubs .
The Landscape of Affordable Housing Development (units priced < INR 10 Lakhs) in Major
Indian Cities
Institutional Approach Towards Affordable Housing
Institutional Approach Towards Affordable Housing
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.
REAL HOUSING