HOUSING
• The Indian scenario
• Housing Issue: India’s housing shortage
• Obsolescence Factor
• Congestion factor
• Nature and Scope of housing problem
• Review of Urban housing - Total number of houses/ households in
urban India
• Statistics of shortage in various income groups
Introduction
• Public housing programmes have come up in countries following market
based development as also with state interventions
• Housing sector has not been left to the market forces because of certain
specificities: forward and backward linkages being significant for macro
processes
• Returns to investment in housing comes not only in terms of rent but also
increases in real estate prices
• In India, too, public sector interventions have been significant in the fifties
and sixties through social housing programmes
• Housing investments being promoted now to create internal demand for getting
out of current economic crisis. Housing Start up Index will be launched by RBI as
a key indicator for monitoring the national economy
Housing in Indian Economy
• In 2006-07, this sector contributed to 4.5% of the country's gross domestic
product and comprised approximately 7% of the total urban work force
• The ‘Task Force on Affordable Housing’ estimates that investment in this sector
for alleviating urban housing shortage could potentially raise the rate of
growth of GDP by at least 1 - 1.5%
• 42.8 million persons or 15% of total urban population of India lives in slums
(2001 Census)
Housing in Indian Economy ..contd
• Over time the number of slums has decreased with a corresponding increase in
slum population leading to densification of the existing slums, although the
percentage of slum population has declined marginally over the last decade
• The percentage of poor in metro cities have come down from about 18 to 12
over the last decade
• The decadal growth rate in the number of households has been modest at 38 per
cent only during eighties and nineties, as compared to 54 per cent during
seventies.
Housing in Indian Economy ..contd
• The decadal growth rate in pucca housing registered a decline from 53.30 per cent
and 64.68 per cent during seventies and eighties to 38.20 per cent only during
nineties.
• The growth rates of semi pucca and kutcha houses were very high during
seventies, similar to that of the pucca houses, the rates being 56 per cent and 32
per cent respectively. It registered an increase of 30.11% in the following decade.
• The growth in kutcha dwelling units was as low as 6 per cent during eighties while
the number came down to fifty per cent during 1991-01.
Housing Condition in India
60 55.8 60
Kutcha Serviceable (Mn)
50 Semi Pucca (Mn) 1.7 50
Pucca (Mn) 40.7 8.08
Figures in million
40 40
HOUSEHOLDS (million) 3.3
29.3 6.21
30 30
3.11
19.1 6.8
20 41.17 20
14.9 2.35
4.35 29.79
1.96
10 4.9 18.09 10
11.8
6.44
0 0
1961 1971 1981 1991 2001
Year
Housing in Indian Economy..contd
• Inequity in housing: Higher the expenditure class lower is the household size and
larger is the number of rooms available
• Congestion factor is acute at the lower expenditure classes
• 99% of the shortage is in the EWS and LIG category
Category-wise housing shortage in Mn. as on 2007
MIG 2% HIG 0%
LIG 25%
EWS 73%
Estimation on housing shortage
As on 2007
1.Households (Mn) 6 6 .3
2.Housing Stock (Mn) 5 8 .8 3
2.1 P u c c a 4 7 .4 9
2.2 Sem i P u c c a 9 .1 6
2.3 Kutcha 2 .1 8
3 . E x c e s s of H H s over H o u s i n g S t o c k (M n ) 7 .4 7
(1 – 2)
4. Cong estion factor ( % ) 1 9 .1 1
4.1Congestion in Hhs. (Mn) 1 2 .6 7
5. O b s o l e s c e n c e factor ( % ) 3 .6
5. 1O bsolescence in Hhs. (Mn) 2 .3 9
6. Upgradation of K u t c h a ( Mn ) (2.3) 2 .1 8
7. Total H o u s i n g S h o r t ag e ( 3 + 4 . 1 +5 . 1 +6 ) 2 4 .7 1
S o u r c e : R e p o r t o f t h e 1 1 th F i v e Y e a r P l a n ( 2 0 0 7 - 1 2 ) W o r k i n g G r o u p o n
U r b a n H o u s i n g with F o c u s o n S l u m s G o v e r n m e n t of I ndi a Ministry of
U r b a n Poverty Alleviation N i r m a n Bhavan, N e w Delhi
Congestion Factor: The percentage of households in which each married couple does not have
separate room to live.
Obsolescence Factor: The percentage of households living in dwelling units aged eighty years or more.
Housing requirement during the 11th
Plan Period (2007-2012)
1.Housing Shortage as on 2007 (Mn) 24.71
2.Households (Mn) 75.01
3.Pucca Houses (Mn) 53.49
4. Semi Pucca Houses (Mn) 10.05
5. Katcha Houses (Mn.) 2.56
6. Addition to households (Mn.) 8.71
7. New Pucca Houses (Mn.) 6
8. Upgradation of Semi Pucca Houses (Mn.) 0.89
9. Upgradation of Katcha Houses (Mn.) 0.38
10. Additional requirement (Mn.) 15.98
11.Total requirement (Mn.) 40.69
Source:Report of the 11 th Five Year Plan (2007-12) Working Group on
Urban Housing with Focus on Slums, Government of India
M
inistry of Urban Poverty Alleviation Nirman Bhavan, New Delhi
Impact of Market on the Housing Sector
• The global meltdown has affected the Indian economy adversely including the
housing market
• In recent months, various measures have been taken by the government to
revive the housing sector
• The RBI has reduced the repo rate five times from 9% to five per cent and reverse
repo rates thrice from six per cent to 3.5%
• There have been efforts to further lower lending rates for home purchases
below Rs 20 lakh
Total Number of Census House - Census-2011
Pattern of Financing
• Institutional flow of funds to house the poor has been marginal
• This is due to the difficulties faced by State Housing Agencies in getting the
required Government guarantee for raising funds for EWS/LIG housing and also
due to shortfall in recoveries from the EWS/LIG beneficiaries
• With the launching of Centrally Sponsored Schemes like VAMBAY and JNNURM,
which have a grant Component, the role of HUDCO' s institutional project
finance/loan has declined
Pattern of Financing of Housing Finance Companies
40.0%
34.1%
35.0% 2002-2003
2003-2004 30.5%
30.0%
2004-2005 24.7% 23.9%
25.0%
23.0%
Percent
19.9%
20.0% 19.6%
15.0% 15.1%
25.0% 25.1%
22.7% 22.2%
10.0% 7.1%
5.0%
0.2% 1.7%4.8%
0.2% 0.2%
0.0%
Less than 50.001- 1.00.001- 3.00.001 – 5.00.001 – Above Rs.
50.000 1.00.000 3.00.000 5.00.000 10.00.000 10.00.000
Size of Housing Loan
Pattern of Financing
• The size-wise disbursement of housing loans by Housing Finance Companies (HFCs)
which are regulated by NHB show that only 0.2% of housing loans extended by
HFCs is less than Rs 50,000/- and about 7 per cent of housing loans is of value
between Rs 50,000- Rs 1,00,000/-.
• More than 73 per cent of housing loans extended by HFCs is of value exceeding
Rs. 3 lakh and about 93 per cent of value exceed if Rs. 1 lakh.
Conclusion
• Benefits are being targeted to middle class households: leading to
exclusionary growth
• The programmes are not affordable to real poor
• No policy to guarantee of shelter to the houseless that is affordable to them
• Strengthening of the Legal System and formalisation of land rights have led
to pushing the poor out of the City
• Threat of eviction continues to the squatters and slum (with informal land
tenure)
• Relocation of the poor in the Periphery and sanitization of cites
Conclusion…
• Regularisation of illegal extension/alteration in the dwelling units in formal
settlements, launching of many of the development projects such as flyovers,
greening drives, mass rapid transport system, etc. were not envisaged in the Plan.
Modification in the Master Plan would be necessary for all these.
• Hence, minor modification in Master Plan to provide land for the poor should pose
no problem
• If the plan can be modified time and again to accommodate global interests, this
could be done for in situ up gradation of slums as well Instead of making land
for the poor a matter of competitive politics, Master Plan must make explicit
provision for land and minimum basic services for the poor.
• Land must, therefore, be in the hands of neither the central nor state
government agencies but regulated through the Master Plan in a transparent
manner.
