affordable housing

Successive governments in India have pushed for the construction of ‘pucca’ houses to improve the quality of low-income housing. The pace picked up during the PMAY, a large-scale program on house building that started in 2015. The total number of completed houses under the program in rural and urban areas is nearly 25 million, which is about 11.1% of the housing stock in India. This tale, investigates two questions—how does the notion of ‘pucca houses’ manifest in different regions in India; and what are the changes that happened in this landscape after PMAY implementation.

The ‘co-living’ concept is a reflection of the ‘asset-light model’ that was pioneered by the hospitality sector. The concept is fast emerging as an alternative residential real estate offering, ensuing as a sustainable solution to the ever-growing urban space scarcity. To map, understand, and predict the development and growth of this shared housing segment, JLL Research conducted a demand survey targeting millennials across the top seven cities in India, and the report foresees this young shared living market continuing to be re-shaped during its nascent years. 

Though shelter is a basic human need, migrant workers live in extremely precarious conditions. Covid-19 highlights the need for multiple efforts and action-oriented policies to increase the supply of affordable rental housing as well as develop social rental housing for this vulnerable and economically salient segment.

In 2020, a Policy Lab series on “Addressing the Housing Vulnerabilities for Migrants” was organised in partnership with Centre for Policy Research (CPR), Cities Alliance, GIZ India, World Bank, Habitat for Humanity and Human Settlement Management Institute, HUDCO. Keeping the COVID-19 crisis and the mass exodus of informal workers, it discussed the present state of rental housing in India, the potential of the newly launched ARHC scheme, and the framework that would be required to sustain this initiative in the long run.

In October 2021, the Tamilnadu government released its first-ever draft “Resettlement and Rehabilitation Policy” for public comment.  While long-awaited, the policy is also premature. It is not anchored in a comprehensive housing and habitat policy that defines a framework for affordable housing, slum clearance, and land use in which the relocation of slum dwellers to remote peripheries is specified as a last-ditch option. Instead of leveraging Chennai and Tamilnadu’s rich history of implementing innovative and inclusionary models of slum rehabilitation and affordable housing, the policy implicitly clings to the tired and discredited model of mass peripheral resettlement and threatens to perpetuate it further.

This article attempts to capture the story of an informally employed low-income household who, with the help of informal financial agents, successfully navigated the informal-formal space of housing finance to buy the house of their choice. The article starts with contextualising the accessibility and affordability constraints for housing finance faced by low-income households. Following this, we discuss a case study of an informally employed home loan borrower, explaining the negotiations playing at the cusp of the informal-formal. Lastly, we deliberate upon the roles of lending institutions, specifically during the COVID-19 crisis and the financial recovery of the home loan industry.

In July 2020, the Ministry of Housing and Urban Affairs, Government of India, announced the Affordable Rental Housing Complexes (ARHC) scheme, as a sub-scheme of the Pradhan Mantri Awas Yojana—Urban (PMAY-U). ARHC aims to address the housing needs of the urban poor and migrants through rental housing, brought to national attention by the reverse migration triggered by the COVID pandemic-induced lock-down. The ARHC scheme is co-terminus with the PMAY-U mission period, that is, March 2022. With a few months left to call for bids and award projects, this piece assesses the state of play in the scheme’s implementation—its emerging modalities, stakeholder engagement and current status—given its importance as India’s first national rental housing scheme.

This is the second post in a series on the India Housing Report focusing on digital technology and tech entrepreneurship in housing, where we try and examine what motivates entrepreneurs in this area, the challenges and potential of using digital solutions, and whether India is ready for such innovative products in the informal housing market. In this piece, we interview Ganesh Shankar, Co-Founder of Homehub, about their product and services.

Digital technology and tech entrepreneurship in housing is rapidly evolving in the Indian context, especially around the affordable housing segment. This is the first post in a series on the India Housing Report focusing on this space, where we try and examine what motivates entrepreneurs in this area, the challenges and potential of using digital solutions, and whether India is ready for such innovative products in the informal housing market.

As a response to the COVID-19 migrant crisis and in furtherance of the Government of India’s ‘Atma Nirbhar Bharat’ mission, the Ministry of Housing and Urban Affairs announced the Affordable Rental Housing Complexes (ARHC) programme under the Pradhan Mantri Awas Yojana scheme to improve the living conditions of urban poor/migrant workers. Although the initiative is a novel step, it operational aspects demand more than what is being offered for enabling private/public agencies to leverage the opportunity and turn it into a grand scale programmatic intervention.