HOUSING - MODULE - 3

Urbanization or urban drift is the physical growth of urban areas as a result

of rural migration and even suburban concentration into cities, particularly the
very largest ones.
 URBANIZATION

For the Census of India 2011, the definition of urban area is as follows:

All places with a municipality, corporation, cantonment board or notified town area
committee, etc.

All other places which satisfied the following criteria:

1. A minimum population of 5,000;

2. At least 75% of the male main working population engaged in non-

agricultural pursuits; and

3. A density of population of at least 400 persons per sq. km.

 URBANIZATION

Level of urbanization increased from 27.81% in 2001 Census to 31.16% in 2011 Census
The process of urbanisation is marked by increasing concerntration in larger cities.

Urban
Rural
 Need and Demand OF URBAN HOUSING

RAPID URBANIZATION

VARIED INCOME GROUPS

LACK OF LAND AVAILABILITY

 URBANIZATION GROWTH IN INDIA

• It is estimated that six states, including West

Bengal, TamilNadu, Gujarat, Maharashtra, Karnataka and Punjab will have more
than half of their total population living in Urban areas by 2030
 The number of migrants to Mumbai from outside Maharashtra during the 1991–2001
decade was 1.12 million, which amounted to 54.8% of the net addition to the population of
Mumbai

Over 9 million people, over 60% of the population of Mumbai, live in informal housing or
slums, yet they cover only 6–8% of the city's land area. Slum growth rate in Mumbai is
greater than the general urban growth rate
 Growth of Slums

61.8

46

28

90% belong to informal sector with no assurance of a steady income.

 Magnitude of Poverty

• Non-affordability of housing by economically weaker sections of society and

• low income families in urban areas is directly linked with the magnitude of urban
poverty

• One fourth of the country’s total urban population, numbering 80.7 million
persons is below the poverty line.
 The Need for Policy

• Urbanization and Development

• Rural To Urban Shift of Labour (development of such small and medium towns which
can serve as generators of economic momentum while at the same time striving to
reduce the rate of migration to existing large cities.)
• Balanced Regional Development
• New Integrated Townships and Green-Field Development
• Role of Housing (contributed 4.5% to India’s Gross Domestic Product (GDP), 16% of
the Indian work force is engaged in Construction and Transport Sectors)
• Improve Quality of Housing (through urban renewal, in situ slum improvement and
development of new housing stock in existing cities as well as new townships)
• Housing Needs (shortage pertains to EWS & LIG sectors).
• Magnitude of Poverty (urban poor have limited access to basic services)
• Development of Sustainable Habitat (‘green lungs of the city’)
 National Housing Policy

The National Housing Policy, 1994 was a product of this economic point of view. The
1994 Policy in its section on “Goals” sought to increase supply of land serviced by
basic minimum services with a view to promoting a healthy environment.

The National Housing & Habitat Policy, 1998 laid greater emphasis on the aspect of
“Habitat” as a supplementary focus to housing. The emphasis on “providing”
housing continued in this Policy with emphasis on both quality and cost-
effectiveness especially to vulnerable sections of society.
 National Housing Policy

The New Urban Housing and Habitat Policy seeks to enhance the spotlight on ‘habitat’
with a ‘Regional Planning approach’ as well as further deepen the role of
Government as a ‘facilitator’ and ‘regulator.’
 National Housing Policy, 2007 – focus area

The National Urban Housing and Habitat Policy, 2007 seeks to use the perspective of
Regional Planning as brought out in the 74th Amendment Act in terms of preparation
of District Plans by District Planning Committees (DPCs) and Metropolitan Plans by
Metropolitan Planning Committees (MPCs) as a vital determinant of systematic urban
planning.
 National Housing Policy, 2007 – focus area

• “Affordable Housing For All”

• Providing basic services
• innovative financial instruments
• fiscal concessions for housing and infrastructure.
• development of cost-effective, quality approved building
materials.
• small and medium towns which can serve as a generators of
economic momentum.
• Roles of various stakeholders - Legal and Regulatory Reforms
• Development of North-Eastern States
 National Urban Housing and Habitat Policy aims

• Urban Planning - balanced urban-rural planning, under the Town &

Country Planning Acts in the States.

• Affordable Housing - adequate housing stock both on rental and

ownership basis , ‘green’ and ‘intelligent’ buildings.

• Increase flow of Funds - subsidy based housing schemes to cost recovery-

cum-subsidy schemes for housing, micro-finance and self-help group

• Spatial Incentives- spatial incentives like relaxation of Floor Area Ratio

(FAR) for ensuring that 20-25 % of the FAR are reserved for EWS / LIG and
issuance of Transferable Development Rights(TDR)

• Increase Supply of Land - accessibility to serviced land and housing

 National Urban Housing and Habitat Policy aims

• Special Provision for SC/ ST/ OBC / Minorities / Disabled

• Special Provision for Women - special needs of women headed households,
single women, working women.
• Employment Generation
• Public-Private Partnerships - partnerships between public, private and
cooperative sectors
• Management Information System - strengthening monitoring of building
activities.
• Healthy Environment
 Role of Government, Urban Local Bodies and Other Agencies

• The Central Government would (in consultation with State

Governments):

• The State Government would (in consultation with Urban Local Bodies):

• The Urban Local Bodies/Development Authorities/Housing Boards

would (in consultation with all stakeholders):

• Banks and Housing Finance Institutions (HFIs) would:

• Public agencies/parastatals would:

• Cooperative and Private Sectors would:

 ROLE - The Central Government
• Create a Supportive Environment - Act as an enabler and facilitator

• Legal & Regulatory Framework - planning at the City, Metropolitan Area, District
and Regional levels.

• Housing Finance - Devise macro-economic policies

• Supply & Management of Land

• Environment and Ecology - Special attention will be paid to housing in coastal

areas.

• Management Information System

• Research & Development

 ROLE - The State Government

• Create a Supportive Environment - Act as an enabler and facilitator

• Legal & Regulatory Framework - planning at the City, Metropolitan Area, District
and Regional levels.

• Public-Private Partnerships - Cooperative Group Housing Societies, Employees

Organizations, labour housing promotion organization, Non-Government
Organizations (NGO) and Community Based Organizations (CBO)

• Skill Upgradation

• Management Information System

• Research & Development (R&D)

 ROLE - The Urban Local Bodies/Development
Authorities/Housing Boards
• Create a Supportive Environment - capacity building at the local level

• Urban Planning - Incorporate provisions of model building bye-laws prepared by

Town & Country Planning Organization (TCPO) and National Building Code

• Public-Private Partnerships - Promote Residents’ Welfare Associations (RWAs)

• Special Programme for Disadvantaged Sections.

• Environment and Ecology - ‘green lungs’ of the city in terms of parks, botanical
gardens and social forestry as well as green belts.

• Security & Safety

 HOUSING AFFORDABILITY

A recent KPMG-Credai (Confederation of Real Estate Developer's

Association of India) study says, affordable and low-cost housing
are often used interchangeably in India, but are quite different
from each other.

"Low-cost housing is generally meant for the economically

weaker section and comprises bare minimum housing facilities,
while affordable housing is mostly meant for the lower- and
middle-income group and includes basic amenities like schools,
hospitals and other community facilities and services."
 Housing Affordability

"There has been a fundamental demand for affordable

housing in India owing to the presence of a large low-
and middle-income group.

Tier II and Tier III cities witness a comparatively higher supply of

affordable housing as compared to Tier I cities.

High cost of land poses a challenge to developers to launch such

projects in the central parts of the city. That is why, most of the
affordable projects in Tier I cities would be found in peripheral
areas."
 Banks and Housing Finance Institutions (HFIs)

• Outreach

• Housing Finance - housing loans

• Special Programmes for Vulnerable Sections - Provide loans at

concessional rate of interest, suitable subsidy support

PUBLIC AGENCIES/PARASTATALS & COOPERATIVE AND PRIVATE SECTORS

 Research and Development, Standardization and Technology
Transfer Organisations

• conventional to innovative, cost effective and environment friendly

technologies.

• disaster mitigation techniques

• transfer of innovative technologies and materials from lab to field.

• Accelerate watershed development

 The Ultimate Goal

to ensure sustainable development of all urban human settlements, duly serviced by

basic civic amenities for ensuring better quality of life for all urban citizens