COEP TECHNOLOGICAL UNIVERSITY

ANALYZING THE SUITABILITY

SUBMITTED BY:
MISS. VAISHNAVI VIKAS PATIL
MIS NO: 722418039

UNDER GUIDANCE
PROF. AKASH BHUTADA

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 I. ABSTRACT
This paper provides summary information on a number of factors that affect housing
affordability. India has relatively strong population growth for an advanced economy.
A large component of this reflects relatively high immigration from rural areas to urban
areas compared to comparable other countries. Higher immigration rates have added
to demand for housing, especially as immigrants tend to be disproportionately young
adults. Immigrants have also tended to head for areas where housing is already short,
such as Pune city (Maharashtra state, India), rather than to country regions. Increasing
prices of real estate and land in urban areas that have forced the economically weaker
sections and poor of the society to utilise the marginal lands typified by congestion,
obsolescence and poor housing stock. Private builders and developers are largely
interested in upper-mid, luxury and high end housing segment. Housing for
economically weaker section and poor is expected to be provided by government
without much legislative clarity. Some governments are initiating through their
welfare programs. It is not sufficient mainly due to large scale of the issue. Other
crucial factors like lack of clarity in building bylaws and guidelines, lack of access to
home finance to poor and economically weaker sections, lack of market Information
and titling Issues, Archaic laws for renting, lengthy land use conversion process and
approvals, excessive control on development, lack of land banks suitable for market,
etc. pushing affordability of housing in urban areas to Immigrants. It is broadly
concluded that, housing for lower Income group and lower middle income group can
be made affordable in India by government and private sector working to gather.
Central government and state government has recently declared affirmative housing
policy may result to improve affordability of housing for poor and economically weaker
sections. The government needs to expedite the implementation of the IT
(Information Technology) enabled 'Single Window Approval System' with linkages
between the centre and state governments, urban bodies and panchayat levels. It is
high time to implement reformed policy frame work and regulations for affordable
housing. Index Terms:
Keywords- factors, Affordable housing, real estate market, LIG, MIG, HIG, EWS, Pune.

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 II. INTRODUCTION:
Affordable housing adequately suits the needs of low- and moderate-income
households at costs below those generally found in the urban market, Pune
(Maharashtra State, India). It may take a number of forms that exist along a continuum
– from emergency shelters, to transitional housing, to non-market rental (also known
as social or subsidized housing), to formal and informal rental, and ending with
affordable home ownership. The 'Median Multiple' indicator, recommended by the
'World Bank' and the United Nations, rates affordability of housing by dividing the
median house price by gross (before tax) annual median household income. "A
common measure of community-wide affordability is the number of homes that a
household with a certain percentage of median income can afford. For example, in a
perfectly balanced housing market, the median household (the wealthier half of
households) could officially afford the median housing option, while those poorer than
the median income could not afford the median home. 50% affordability for the
median home indicates a balanced market." Determining housing affordability is
complex and the commonly used housing-expenditure-to-income-ratio tool has been
challenged. In the United States and Canada, a commonly accepted guideline for
housing affordability is a housing cost that does not exceed 30% of a household's gross
income. Canada, for example, switched to a 25% rule from a 20% rule in the 1950s. In
the 1980s this was replaced by a 30% rule. India uses a 40% rule. The total geo-
graphical area of the country (India) is 3,287,240 sq.km. At the International level,
India accounts for only 2.4 percent of the world surface area and yet it supports and
sustains 16.9 percent of the world population. In 150 China with 22 percent of
population led the world followed by India with 14.2 percent. It is estimated that by
2050, India will overtake China to become the most populous country on the earth
with about 17.2 percent population living here. This equation is highly impacting on
affordability of housing in general. Therefore, Immigration from rural area to urban
areas consistent and increasing at the higher rate resulting deficiencies in housing
supply especially beyond affordability of poor and economically weaker sections.
Affordability of housing will improve by reforms in several segments to enhance land
availability & ownership clarity, government policy, statutory laws, other rules &
regulations, banks & financial Institutes, Infrastructure, utilization of local resources,
etc.

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III. AIM:
To explore factors affecting affordability of housing, which may barriers to afford
housing for large mass especially economically weaker sections, lower Income groups,
financially poor, etc.

IV. OBJECTIVES:
Some of the broad objectives for study factors affecting affordable housing are listed
below:
1) To know availability of the land, ownership issues, land cost, surroundings /
vicinity & infrastructure availability, etc.
2) To find out rate of migration from rural to urban areas
3) To collect data of housing demand and supply especially for lower Income
group (LIG) segment
4) To evaluate government policy, regulatory and statutory compliance
requirements, permissions, approvals, tax structure, duties, levies, etc. for land
and development of land for housing purpose
5) To explore possibility to utilize 'Information Technology' (IT) for speed up
permissions, approvals, construction, etc. related processes
6) To find out suitability of 'Public Private Partnership' (PPP)
7) To understand employment generation linkage with affordable housing
construction.

V. LIMITATION:
1) The geographic review region is bound to Pune city.
2) The study inspects the housing pattern and land use pattern in the city.
3) The study will include the study of 23 cities around Pune Municipal
Corporation(PMC).
4) This study will evolve the survey of people around the area.

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VI. LITERATURE SURVEY:
Literature review of following major documents to enhance understanding about the
subject: Report 2012 – Green Building – Chapter 7 Centre for Science & Environment,
New Delhi EXTENT OF PROBLEM as per Government estimates, the total housing
shortage in the urban areas, at the beginning of the 11th Plan period was around 24.71
million units and is likely to go up to 26.53 million units by 2012. Unofficially the deficit
stands at more than 40 million, growing at 10% each year. The urban situation is
equally appalling with 99 per cent of the housing shortage pertaining to the
Economically Weaker Section (EWS) and Low Income Group (LIG) categories. Often
there Affordable housing and low cost housing are used as synonyms, although they
differ a great deal from each other. Low-cost housing is generally meant for the
Economically Weaker Sections (EWS) categories and comprises bare minimum housing
facilities while affordable housing is generally meant for people from Low Income
Groups (LIG) and Middle Income Groups (MIG). In fact, the inadequacy of housing
stock and lack of spaces for house these units in Indian cities manifest in the form of
growth in slum and squatter settlements. It is the 6% growth of slums that is fast
outstripping the growth in urbanization in India and its cities at 3% and 4%
respectively. According to UN Habitat India is adding 4.4 million people to slums every
year and 202 million Indians will be residing in slums by 2020. Generally, houses in a
bracket between 5-15 lakhs are considered falling in affordable housing bracket.
Shelter, HUDCO Publication, Issue April 2013, Volume – 14, No. 1 Theme – Affordable
Housing & Urban Development Corporation Limited (HUDCO), New Delhi Housing is
one of the basic human needs and each person longs to have a house in their life span.
The latest estimates by the Technical Group on Urban Housing for the 12th Plan has
estimated the total urban housing shortage in 2012 as 18.78 million, of which almost
96 per cent pertains to the economically weaker sections and the lower income
groups. The investment requirement for addressing this shortage would be in the
order of INR. 94 Trillion, assuming an average per unit cost of INR. 0.5 Million. A Task
Force on 'Affordable Housing for All' defined affordable housing in terms of
(a) Multiples of household income;
(b) Size of the tenement and
(c) Percentage of household income in case of rented accommodation.
This definition highlights the position that affordability is a major concern for urban
poor, who in the absence of access to formal housing resort to slums and informal
settlements. To overcome the present situation, three issues require our attention.
First, is to understand the need for a multipronged strategy for housing delivery.
Second aspect is to work out a strategy to increase the ability of households to acquire
housing at market prices. Third aspect pertains to limited access of the poor to sources

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of institutional funding and apprehension of loan delinquency which has made
institutional lenders wary of lending to the poor/weaker sections. Affordable Housing
for All: An Overview of Housing Policies in India Census 2011 has estimated that the
urban population of India is at 377 million which constitutes about 31% of the
country’s population. By 2031, the population of urban areas is projected to reach 600
million (GirishKarnad,2011). As per the report of the Committee on slum
statistics/Census chaired by Dr. PranabSen, the slum population in the country is 93
million in 2011. Many Asian countries are demonstrating that with strong political will
and improved institutional capacity, affordable housing can be provided in large scale,
particularly through national programmes. India and China are showing evidence of
providing affordable housing through such initiatives (UN – HABITAT, 2011). This
clearly indicates that efforts in India for providing affordable houses have been noticed
across the globe. Programmes like VAMBAY, JNNURM and now RAY are major
initiatives of the government towards affordable housing. In one way the government
has given top priority to housing sector, on the other hand the housing shortage is
phenomenal in EWS and LIG groups. Urban Land Ceiling and Regulation (ULCAR) Act,
1976 National Housing and Habitat Policy, 1998 Valmiki Ambedkar Awas Yojana
(VAMBAY) National Urban Housing and Habitat Policy (NUHHP) 2007 Jawaharlal Nehru
National Urban Renewal Mission (JnNURM) Rajiv Awas Yojana (RAY) – Vision of Slum
Free India Interest Subsidy Scheme for Housing the Urban Poor (ISHUP) Affordable
Housing in Partnership Real Estate (Regulation and Development) Bill, 2011 Special
Refinance Scheme for Urban Low Income Housing Interest Subvention Scheme V.
METHODOLOGY Combined research method by using explanatory & diagnostic This
paper provides summary Information on a number of factors that, affect housing
affordability and how they have change over recent Indian census periods that were
reviewed (2001 & 2011). This paper is researching about the root causes of the
problem

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VII. METHODOLOGY:

Identify potential parcels of land based on ownership (public vs. private), size, and
current land use. Focus on underutilized land, government-owned plots, or
brownfield sites for redevelopment. Analyse local zoning laws, ordinances, and
regulations to determine if the land is zoned for residential use or if rezoning is
required. Evaluate proximity to urban centres, public services, transportation, and
essential amenities such as schools, hospitals, and grocery stores. Assess the cost of
acquiring the land, ensuring it aligns with budgetary constraints for affordable
housing. Calculate the cost of preparing the land, including site preparation,
infrastructure development, and potential costs of rezoning or remediation.

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VIII. STATICALLY INTERPRETATIONS OF RESULTS:

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Discussion Affordable housing is a generic concept and corresponds to the income
level of individuals. Globally, accepted definition of affordable housing is that the
cost of housing should not be more than 30 percent of a household’s gross income.
This includes taxes and insurance for owners, and utility costs. As per the task force
on Affordable Housing for All, headed by Shri Deepak Parekh, if the cost does not
exceed four times the household gross annual income or if EMI/ rent does not
exceed 30 percent of the household’s gross monthly income, it can be categorised as
affordable housing for the Economically Weaker Section (EWS)/ Low Income Group
(LIG) category. Similarly, for MIG category the cost shall be within five times the
household gross annual income or EMI/ rent should not exceed 40 per cent of the
household’s gross monthly income to categorise it as affordable. In India the issue of
affordable housing is largely associated with EWS and LIG categories of the society.
Until the announcement of the new housing mission, the prevailing income
definition of an EWS category household was INR. 1,00,000 per household per
annum, whereas a household with annual income between INR.1,00,001 to
INR.2,00,000 was identified as an LIG household. Recognizing the demand for
housing and the need to ensure its affordability, the government of India launched a
Mission “Housing for All (Urban) by 2022” in June 2015 under the “Pradhan Mantri
Awas Yojana” and this mission has redefined the income levels of EWS and LIG
categories. As per the mission guidelines, households having an annual income up to
INR.3,00,000 come under the category of EWS and those with an annual income
between INR.3,00,001 and INR.6,00,000 come under the category of LIG (MoHUPA,
Revised Pradhan Mantri Awas Yojana Guidelines, 2016) in order to give a wider
coverage of beneficiaries under the programme. States/ UTs have been given the
freedom and flexibility in the guidelines to redefine the annual income criteria as per
local conditions, in consultation with the central government. It is evident that
various types of policies, guidelines and missions have been formulated by the

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central government and Maharashtra participating state governments to address the
housing related issues and to provide good quality houses at affordable rates. As the
implementation of such policies is a long drawn process, the objectives of the
policies and earlier mission could not be achieved fully. In view of this the new
Mission “Housing for All by 2022” was launched by the Government of India in 2015-
16 and the results of the same will be visible after 4-5 years. Analysis of census 2011
data for housing has indicated that surplus housing is available in Pune region in the
MIG and higher category. However, there is an urgent need to expedite efforts to
achieve the targets as envisaged in the central and state level polices and guidelines
towards the creation of good quality housing at affordable rates.
 For Indians, the most important form of social security is to own a house.
 In India, there is a housing shortage, along with rising Inventory and mostly
bankrupt developers.
 Land especially with basic Infrastructure in place, remains a limited
commodity.
 There is now significant social stress on the economy with rising urbanization
and an expanding middle class along with a housing shortage estimated at
62.5 million units in the year 2017.
 Over 65 million people live in slums in the year 2017.
 The demand for houses is expected to increase to 88.8 million affordable
units, according to the PranabSen Committee on slum statistics, within the
next two to four years, with the deficit in urban areas touching 18.9 million
units.
 An estimated investment of $ 1.7 trillion is required to meet the housing
shortage.
 Innovative financial measure like better loan facility, tax free bonds, external
commercial borrowings, etc. tools and techniques required to improve
affordability of housing.
 The housing and construction sector remains India's second largest
employment generator after agriculture. Real Estate comprises twenty to
thirty percent of this, contributing to five percent of India's Gross Domestic
Product (GDP).

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IX. CONCLUSIONS:
Following conclusions emerge out of the earlier mentioned facts and analysis:
 The implementing agencies like Development Authorities, Housing Boards,
Urban Local Bodies, Slums/ Shelter Improvement Boards, etc. working in
districts/ towns of the Pune should join hands and make concerted efforts in
providing affordable housing in a time bound manner.
 Looking at the availability of surplus housing of MIG and higher category in
Pune, it is recommended that the component of affordable housing should be
increased to meet the demand for this category.
 The draft rental housing policy should be brought into effect at the earliest
to fill the demand supply gap in this category because everybody may not be
interested in owning a house due to various reasons and prefer rental
housing.

Key Findings:
1. Optimal Locations: Areas near Pune’s suburban regions, such as Hinjewadi,
Wagholi, and Kharadi, offer a balance of affordability and accessibility.
2. Environmental Constraints: Flood-prone zones and ecologically sensitive
areas, such as those near the Mula-Mutha River, must be avoided to ensure
sustainability.
3. Infrastructure Gaps: Many peri-urban areas lack adequate infrastructure,
necessitating significant investment in roads, water supply, and electricity.
4. Regulatory Challenges: Lengthy approval processes and restrictive zoning laws
hinder timely development of affordable housing projects.

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 X. REFRENCES:

1) Editorial, Learning from the past: international housing policy since 1945- an
introduction. Habitat International, 27 (2003) 163-166.
2) Erguden, S., 2001. Low cost housing. Policies and constraints in developing
countries. Spatial information for sustainable development, International
conference, Nairobi, Kenya.
3) Government of India, 1998. National Housing and Habitat Policy
4) Government of India, 1994. National Housing Policy Indira Awas Yojana.
http://kar.nic.in/raichur/iay.htm
5) Jayaram. N., 198~t Housing problems in Urban India: A critical assessment,
Housing in India: Problem, Policy and Perspectives. pp 25-37.
6) Kumar, A., Meenakshi. C, S., 2000. Women's participation in rural housing
scheme.\': A case study of Kerala, Discussion paper No 24, Kerala Research
Programme on Local Level Development, Centre for Development Studies,
Thiruvananthapuram.
7) Lall, S., 2002. An evaluation of a public sector low Income housing project in
Alwar: India. Working paper 6, Society for development studies.
8) Lankatilleke, L., 1986. Training and Information for Institutional Development for
the implementation of the Million Houses Programme of Sri Lanka, Habitat
International, 10 (3) pp I 09-129.
9) Potdar, K, K., 2015. Various parameters affecting affordable housing in
government & private sector, Pune, Maharashtra, International Journal for
technological research in engineering, ISSN (online):2347-4718

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