Low Cost Housing in India – Demand Up, Supply Limited!

During 2001-2011, the urban population of India grew at a CAGR of 2.8%, resulting in the increase in level of urbanization from 27.81% to 31.16%.

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.

affordable housing shortage in india

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.

Urbanization 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.

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.

There is no clear-cut definition of the term ‘affordable’, as it is relative concept and could have several implied meanings indifferent contexts.

According to a 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 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.

What is clear cut message which comes out of the present situation of housing shortage in India is to work harder on increasing the supply of affordable housing or low cost housings. There should be a proper plan needed to be laid out in detail and on which execution needs to be carried out in best of best manner to tackle this huge gap between demand and supply of low cost housing in India.

India and its government needs to gear up on it.  As soon as it happens, best for country and its people.

Delhi Development Authority Expanding EWS Housing

The Delhi Development Authority announced proposals to expand affordable housing for city’s residents in its FY 2013-2014 budget.  In fiscal year 2012-2013, DDA authorities claim that 35,000 houses were either completed or in the process of being completed.  For the coming fiscal year, 4,855 EWS and 24,660 LIG flats were taken up for construction in Dwarka, Narela and Rohini.  DDA also awarded another 3,000 EWS houses for slum dwellers in A-4 Kalkaji Extension.

According to Union Urban Development Minister Kamal Nath, there are currently 40 lakh people in Delhi living in unauthorized settlements.  Minister Nath said that the government regularized 917 of these unauthorized colonies in the current fiscal year in an attempt to prevent the expansion of slum clusters.  In February, pressure from slum dwellers in the capital pushed the Delhi Government to change several conditions for eligibility for rehabilitation making it easier for slum residents to acquire formal housing.

An Affordable House – A Dream for Everyone

Everyone’s dream is to own a home. Regardless of geography or climate, everyone wants a place to be safe and call their own. Shelter is a basic human instinct. Unfortunately, this dream, this very basic necessity, is not a dream that everyone is capable of realizing.  We at Vianar Affordable Housing hope and work towards making this dream viable in India.

Given the high rate of inflation, there is an immense shortage of housing in India. Most real estate projects focus marketing and services to middle to higher income clientele. Lower income groups (LIG) and the economically weaker section (EWS) of society are often ignored in the quest of fulfilling the housing shortage.

Of late, the concept of “Affordable Housing” or “Low-incoming Housing” has emerged in India. Moreover, it has turned out to be a profitable venture for real estate companies.  The focus is a single-family unit between 4.5 and 6 lakhs.  A small EMI and low income family can now buy their dream house!  The conception of the concept of ‘Affordable Housing’ has really opened the doors for many Indians.

An Affordable House – A Dream for Everyone

The concept of Affordable housing system has been introduced for good.  Affordable Housing is a long overdue necessity of our society. Each development should hopefully aim to also provide primary schools, kindergartens, health clinics, general stores and a community center.

A proper channel and framework is required to properly transform the affordable housing situation in today’s world. We, at VAH, strive to make housing for all a pleasant reality!