URBAN HOUSING

HOUSING ISSUES - INDIAN

CONTEXT
UNIT 1
NEED AND DEMAND OF URBAN
HOUSING

RAPID URBANIZATION

VARIED INCOME GROUPS

LACK OF LAND AVAILABILITY

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:

1.All places with a municipality, corporation, cantonment board or

notified town area committee, etc.

2.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
 URBANIZATION GROWTH IN INDIA

 It is estimated that six states, including West

Bengal, TamilNadu, Gujarat, Maharashtra, Karnataka and Punja
b will have more than half of their total population living in Urban areas
by 2030
RAPID URBANIZATION
 VARIED INCOME GROUPS

An estimated 27 percent of the population falls below the

government of India’s poverty line of $10(RS.599) a month in urban
areas

Below poverty
line
Above Poverty
Line
2011 census population of India was 1,21,01,93,422 = 1.27 Billion
In the past 50 years,
both the number and proportion of Indians living in homes with a per
capita space of less than 100 square feet have gone up substantially.
In fact, a majority of Indians have per capita space equivalent to or

less than a 10 feet x 10 feet room for their living,

sleeping, cooking, washing and toilet needs.
These startling statistics emerge from the recently released 63rd round survey
of the National Sample Survey Organisation. The data shows 32% of
urban houses are 258 sq ft or less in area.

Given that urban households have an average size of 4.3 persons, this
translates to 60 sq ft per person, the minimum specified for US
prisons.
ACCESS TO HOUSING 2001
 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.
URBAN HOUSING SHORTAGE
URBAN HOUSING SHORAGE
HOUSING SHORAGE AND REQUIEMENT
 HOUSING SHORTAGE – BREAK-UP
 Estimated Urban Housing Unit Shortage as
on 1.4.2007:

Total : 24.71 m
EWS : 21.78 m
LIG : 2.89 m
MIG/HIG : 0.04 m

 More than 99% shortage is for EWS/LIG

segments – Technical Committee set up by
Ministry of Housing & Urban Poverty
Alleviation
 HOUSING AFFORDABILITY
There has been an unprecedented rise in
property prices during the fiscal years
2001/02 to 2006/07 as a result of rising demand,
shortage of housing, limited availability of land,
and speculative trade in land.

For instance, in South Mumbai, the price per square

foot increased from Rs 10,000 in 2004 to Rs 20,000
in 2006.

In central Delhi, land price per square foot doubled

from Rs 9,000 in 2005 to Rs 18,000 in 2006.
 HOUSING AFFORDABILITY

Whereas urban housing prices have risen by 30–

40 percent annually, salaries have increased by
an average of 20 percent a year over the period
2008–09.

For a typical property in Mumbai, affordability declined from 4.4

times in 2004 to 5.5 times in 2006

Analyzing over a longer period (from 1995 to 2006), however, the

housing affordability has improved and looks rather
satisfactory, dropping from 22 in 1995 to 5 in 2006 (Karnad 2008).
 Chennai Bangalore
Built Up Built Up Area of
Estimated
Area of Location Flat/Apartment
Estimated Rent
Location Flat/Apartme (sq feet)
Rent
nt CV Raman
(sq feet) 1050 Rs. 7,000
Nagar
Anna Nagar 920 Rs.14,500
Jaya Nagar 900 Rs. 9,000
Mylapore 1000 Rs.20,000
Kodambakkam 750 Rs.15,000 Airport Road 1800 Rs. 32,000
Egmore 1300 Rs.16,800
Banergatta
1800 Rs. 19,000
Nungambakkam 1400 Rs.20,000 Road
Kilpauk 800 Rs.6,600
Koramangala 1300 Rs. 12,000
Adyar 500 Rs.7,500
Velachheri 1100 Rs.10,000
HOUSING AFFORDABILITY
 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."