Smart pric­ing will get buy­ers

At­trac­tively-priced and well-lo­cated mid and up­per-mid cat­e­gory res­i­den­tial projects will con­tinue to lure in­vest­ments in 2015

HT Estates - - HTESTATES - An­shu­man Mag­a­zine

Al­though In­dia’s hous­ing seg­ment ac­counts for al­most 80% of the real es­tate and con­struc­tion sec­tor in terms of vol­ume, we con­tinue to have a hous­ing short­age of ap­prox­i­mately 19 mil­lion units. Ac­cord­ing to the Min­istry of Hous­ing & Ur­ban Poverty Al­le­vi­a­tion (MoHUPA), gov­ern­ment of In­dia, the 10 states of Ut­tar Pradesh, Ma­ha­rash­tra, West Ben­gal, Andhra Pradesh, Tamil Nadu, Bi­har, Ra­jasthan, Mad­hya Pradesh, Kar­nataka and Gu­jarat con­sti­tute about 76% of this ur­ban hous­ing short­age. Around 56% of this short­age is among house­holds from the eco­nom­i­cally weaker sec­tion (EWS) with an av­er­age an­nual house­hold in­come of up to ₹ 1 lakh, while ap­prox­i­mately 40% is among house­holds in the lower in­come group (LIG) with an av­er­age an­nual house­hold in­come of ₹ 1 to ₹ 2 lakh. Nearly 96% of this hous­ing short­age, there­fore, lies among the EWS and LIG cat­e­gories of ur­ban In­dia.

The lack of ac­cess to for­mal credit along with high priced home loans and debt, leave the bot­tom of the hous­ing mar­ket pyra­mid with lit­tle more than squat­ter colonies, ur­ban slums and unau­tho­rised set­tle­ments by way of af­ford­able ac­com­mo­da­tion op­tions.

Rental hous­ing

To tackle this enor­mous short­age that is ex­pected to ac­cel­er­ate with ris­ing mi­grant pop­u­la­tion move­ments to ur­ban ar­eas, MoHUPA has been fo­cus­ing on an af­ford­able hous­ing pol­icy that in­cludes a rental hous­ing in­ter­ven­tions pro­gramme.

De­spite a hous­ing short­age of ap­prox­i­mately 19 mil­lion units, around 10.2 mil­lion com­pleted houses are also ly­ing va­cant across ur­ban In­dia, which may be ab­sorbed within a for­mal rental hous­ing pro­gramme to ad­dress is­sues of ur­ban ac­com­mo­da­tion. Al­though the larger fo­cus has tra­di­tion­ally been on own­er­ship of hous­ing, the sig­nif­i­cance of rental hous­ing can­not be em­pha­sised enough.

Vul­ner­a­ble pop­u­la­tion groups ei­ther re­sid­ing in or mi­grat­ing to ur­ban cen­tres, in need of rent- al hous­ing for em­ploy­ment or ed­u­ca­tion, in­clude: Sin­gle stu­dents Young, sin­gle ex­ec­u­tives Newly mar­ried cou­ples Mi­grant fam­i­lies, and The el­derly.

Rental hous­ing of­fers a con­ve­nient and cost-ef­fec­tive op­tion for all such mi­grant pop­u­la­tions that might not want to make long- term fi­nan­cial com­mit­ment in a city. While the higher and mid­dle in­come mem­bers of th­ese groups have the op­tion of hiring apart­ments and bun­ga­lows in up­mar­ket and mid­dle class res­i­den­tial ar­eas, the LIG and EWS groups are left with hiring rooms or jhuggi-jhopdis in unau­tho­rised colonies and ur­ban vil­lages.

Leg­isla­tive sup­port

Ac­cord­ing to the Cen­sus 2011, around 69% of house­holds in ur­ban ar­eas live in owned dwellings, while about 28% live in in­for­mal rented ac­com­mo­da­tion, and just about 3% in for­mal hired dwelling units. Tak­ing cog­nizance of this sce­nario, a task force on rental hous­ing was con­sti­tuted by MoHUPA, the ob­jec­tives of which were to: De­velop a strate­gic pol­icy i nter­ven­tion to pro­mote rental hous­ing as a vi­able

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