Housing Scenario in Urban India
The housing shortage in India has been continuously on the rise with the rising population as well as migration of people to urban areas, which resulted in slums and sputtered settlements. According to the technical study on Urban Housing Shortage conducted by MHUPA, there were 18.78 million who were homeless across the country of which 96% pertains to EWS and LIG segments.
State-wise Housing Shortage
The analysis below takes into consideration the housing shortage across different states, the respective state’s contribution to India’s GDP and per capita income. As per 2012 statistics, Uttar Pradesh tops the list of states having a housing shortage with over 3 million homes and Maharashtra is the second with a shortage of fewer than 2 million units, followed by West Bengal, Andhra Pradesh, and Tamil Nadu. These top 5 states contribute 47% of the housing shortage in India. However, the state of Maharashtra is significantly important amongst the others owing to its high contribution to the country’s economic growth. Maharashtra’s GSDP to GDP ratio is 15% which is the highest among all. Its per capita income is INR 1,11,980 as of 2012-13. Considering these factors, the state requires urgent attention to resolve housing issues. Thus, it can be well assumed that the status of housing and its shortage needs more attention. Our report delves deep into the affordable housing situation and real estate dynamics in Maharashtra.
Urban Housing Shortage by Socio-Economic Groups
EWS is defined as the group with a household income up to INR 1.50 lakh per year while the consideration for LIG is annual income between INR 1.5 – 3.0 lakh. EWS and LIG together account for nearly 96% of the shortage and is a huge market that needs to be addressed. India is traditionally an agrarian nation but post liberalization of 1991, the country started to witness traction in manufacturing and services sector, which resulted in rapid urbanization. This led to housing shortage in most of the states, including Maharashtra. The Government’s limited focus to cater to the requirements of EWS and LIG segment has worsened the situation. However, with policy tweaks and amendments, the situation seems to be improving now.
GOVERNMENT ENERGIZES THE AFFORDABLE HOUSING SECTOR
- Jawaharlal Nehru National Urban Renewal Mission (JNNURM): Launched in 2005, this was a massive city modernization scheme.Its aim was to construct 1.5 million houses for urban poor in a million-plus population cities. Total 11,05,195 dwelling units are constructed and delivered while around 10% of the units are yet to be occupied. These units are predominantly located in remote areas which still lack physical and social infrastructure.
- Integrated Housing and Slum Development Programme (IHSDP):IHSDP was launched by the Government of India by merging the schemes of the National Slum Development Programme (NSDP) and Valmiki Ambedkar Awas Yojana (VAMBAY). The objective of the scheme is to provide adequate shelter and basic infrastructure facilities to the slum dwellers in urban areas. The scheme of IHSDP is funded in the ratio of 80:20 by the Government of India and State Government. As per guidelines of the scheme, the states/UTs may avail the central assistance for improvement/ upgradation/ relocation projects including upgradation/new construction of houses and infrastructural facilities like water supply, sewerage, storm water drains, community bath, paving of lanes, street lights, community toilet, etc.
- Rajiv Awas Yojana (RAY):This scheme focusses on integrated development of all the slums by providing water supply, sewerage, drainage, solid waste management, approach and internal roads, street lighting, community facilities such as community toilets and baths, informal sector markets, and livelihoods centers.As per MoHUA, 59,565 dwelling units are constructed while 18,657 units are unoccupied till Jan 2019.
Affordable Housing Through Partnership
The mission is to partner with States/UTs/Cities and provide financial assistance to EWS at the rate of INR 1.5 lakh per house being built. The central government will assist if the project has more than 250 units and having at least 35% of housing for EWS under the affordable housing project, which can be a mix of EWS, LIG and MIG housing. Ministry of Housing and Urban Poverty Alleviation has prepared a “Draft Model Public-Private Partnership Policy for Affordable Housing in India” to facilitate the private sector’s participation in affordable housing and help to fulfill the rising demand.
Subsidy for Beneficiary-led individual house construction
The EWS families, whoever is not eligible in any of the above components of the mission can avail this particular scheme of central assistance of INR 1.5 lakh and should be part of the Housing for All Plan of Action (HFA PoA). The provided assistance can be used for the construction of new houses or to enhance existing houses with a minimum addition of 9 sq. mt. of carpet area to the existing house.
PMAY Urban Performance
Under PMAY (Urban), total 1,17,707 houses are approved, out of which only 35% are occupied, and 31% are in progress as of 2018. Affordable Housing in Partnership Scheme (AHP) total of 25,407 units was approved, with the cost of INR 1,398.41 Cr. Total of 1,41,848 units are approved, in which only 58% are completed, 26% are in progress and 16% yet to start construction.
BUDGET 2018-19 • Budget 2018-19 has further given impetus to affordable housing by creating a dedicated fund under which it will ensure that 37 lakh houses are built in urban areas by end of FY2018-19. AHP programme has shown good results in achieving the target as 92% of the dwelling units are completed, out of which only 12% of the units are not occupied and 3% units are yet to start from the total approved 24,141 units. RAY is working on moderate speed compared to AHP, as only 51% of units are completed against planned 1,17,707 units, in which only 35% are occupied by dweller.
Report Excerpts by Anarock Housing Report
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