Skip to main content

Housing shortage 19 million units; units lying idle 11 million: "Paradox" of India's urban growth paradigm

By Rajiv Shah
India’s urban housing shortage, which was estimated to be 18.78 million units by 2012-end, is expected to grow by a “compound annual growth rate of 6.6 per cent over the next decade, the Housing and Land Rights Network (HLRN) has said, adding, 95 per cent of this shortage is of the economically weaker sections (EWS) and lower income group (LIG).
A network of housing rights NGOs across India, HLRN, in a study released recently, has says that while India’s total number of housing shortage will reach 38 million units by 2030, “over 70 per cent of migrants are least likely to afford a house at market prices.”
The study, a status report titled “Housing and Land Rights in India”, further estimates that while “more than 30 per cent increase in Tier I and Tier II cities”, the Tier IV cities “will also witness an acute shortage of affordable housing as these cities will account for 60 per cent of the gap between affordability and the market rate.”
Tier- I cities are those with a population of 100,000 and above, Tier II cities with a population between 50,000 and 99,000, Tier III cities have a population between 20,000 and 49,000, and Tier 4 cities have a population between 10,000 and 19,999.
However, the report believes, “Housing shortage, in terms of the gap between demand and supply, is not so much due to the pressure of population on the city but is a consequence of unrestrained commercial development of housing for the urban elite at the expense of investment in housing for EWS.”
Pointing towards India’s “paradoxical economic growth paradigm”, the HLRN estimates that, as against such huge housing shortage today, there are 11.09 million vacant houses in the country. It adds, this is because of “Rampant speculation in the housing market.”
“Almost Rs 47 trillion was invested in the real estate sector between 2008 and 2014”, it says, adding, “Speculators tend to buy property during the construction stage, causing the developer to raise prices to enable early investors to make gains. Developers also tend to create the impression that housing units have been ‘sold out’, while real estate agents attempt to sell this stock at higher prices by creating a situation of artificial scarcity.”
“The National Housing Bank monitors housing prices in India through an index called Residex. The index indicates that housing prices in 2014 had more than doubled since 2007 in Faridabad, Ahmedabad, Pune, Bhopal, Kolkata, and Mumbai; in Chennai, prices had more than tripled”, the report says.
“To maintain stable demand in the housing market, private developers are reducing sizes of houses without decreasing the cost per square foot. Between 2010 and 2015, the average size of a residential unit reduced by 26 per cent in Mumbai, while in Bengaluru, Chennai, and Kolkata, sizes reduced by 22 to 24 per cent”, says the report.
As a result of the acute shortage of affordable houses, the report states, the Census 2011 estimates, 938,384 persons are homeless in urban areas, which “an underestimation”, as it “does not include those sleeping in places of work because they do not have housing”. According to independent estimates, “the total number of homeless persons in India at about 2.3 million, with 150,000–200,000 in Delhi, and over 200,000 in Mumbai and Navi Mumbai.”

Comments

TRENDING

Whistle-blowing IPS officer Sanjiv Bhatt's wife suspects foul play after truck hits her car

By Nachiketa Desai*
Paranoia has seized Shweta Bhatt, wife of suspended Indian Police Service (IPS) officer Sanjiv Bhatt, after the car she was driving was rammed in broad day light. According to Shweta Bhatt, it was beacon light-flashing truck without registration number plate. The incident took place on January 7, just a day ahead of the Gujarat High Court was scheduled to take up the bail application of Sanjiv Bhatt, arrested last year for "involvement" in a 23-year-old case.

Call to support IIM-Bangalore professor, censured for seeking action against Uniliver

Counterview Desk
Sections of the Indian Institute of Managements (IIMs) across India have strongly reacted to the decision to censure Dr Deepak Malghan, a faulty at IIM-Bangalore. Prabhir Vishnu Poruthiyil, who is faculty at IIM-Tiruchirapalli, has sought wider solidarity with Dr Malghan, saying, "The administration has censured Deepak for merely suggesting a meaningful action against Hindustan Unilever for their abysmal environmental record" by “disinviting” it for campus placement.

Morari Bapu, who has installed new statues of Ram, Laxman, Hanuman without weapons

By Sandeep Pandey*
A saint is one who can give some inner peace by his/her voice. This will happen only when s(he) will talk about love and harmony. Morari Bapu is one saint who has been conveying the message of love, peace, harmony, fraternity, etc. Today when a number of saffron clad figures with aggressive posture, spewing venom, fanning hatred to polarise voters are at the forefront of politics of Hindutva it is a relief to see Morari Bapu in a different mould.

99% MGNREGA funds "exhausted", Govt of India makes no additional sanctions: Study

Counterview Desk
A letter, addressed to Prime Minister Narendra Modi, and prepared by senior activists led by Aruna Roy on behalf of the Peoples’ Action for Employment Guarantee (PAEG), and signed, among others, by 80 members of Parliament, has regretted that, despite repeated public statements by his government promising employment and job creation that will boost the country’s growth, the country’s only employment guarantee programme, Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), “is being systematically undermined.”

Nuclear reactors sought from French giant "not safe": Letter to Modi on Jaitapur project

Counterview Desk
Amidst reports that the French nuclear giant EDF has submitted a “techno-commercial offer” for the world’s largest nuclear power park proposed in Maharashtra’s Jaitapur nuclear power park in Jaitapur on the Maharashtra coast, Dr EAS Sarma, India’s former Union Secretary in the Minister of Power, and an eminent voice in the civil society, has written an open letter to Prime Minister Narendra Modi, who also heads Department of Atomic Energy (DAE),  protesting the move.

World Bank clarifies: Its 26th rank to India not for universal access to power but for ease of doing business

By Our Representative
In a major embarrassment to the Government of India, the World Bank has reportedly clarified that it has not ranked India 26th out of 130 countries for providing power to its population. The top international banker’s clarification comes following Union Power Minister Piyush Goyal’s claim that India has “improved to 26 position from 99” in access to electricity in just one year.

Kerala land being acquired using "draconian, anti-people" National Highway Act, 1956

Counterview Desk
In a letter Chief Minister of Kerala Pinarayi Vijayan, senior activists and politicians have insisted that the Kerala government should not agree to "inhuman displacement and buid-operate-transfer (BOT) Toll system", imposed by the Government of India and the National Highway Authority of India, for widening the current National Highway (NH) 66.

Kaiga NPP expansion: Karnataka to get just 400 MW, but lose thick forest, fresh water

Counterview Desk
In an open letter to the chairman and members of the Atomic energy Commission (AEC) on the issue of Kaiga nuclear power plant (NPP) expansion plan in Karnataka, Shankar Sharma, well-known power policy analyst, has argued that that in case of expansion, the site will face “exponential increase in radiation emission risks”, underlining, “Nuclear safety experts identify such a scenario as enhanced risk for NPPs with multiple reactors and shared technical facilities."
Sharma says the questions that also be asked whether Karnataka should lose more than 54 hectares of thick forests and about 152,304 cubic meters of fresh water per day from Kali river for a meager benefit of 400 MW from the Kaiga NPP, for which “there are many benign alternative options available for the state at much lower overall costs to the state.”
Text of the letter: This has reference to the public hearing under the Environmental Impact Assessment (EIA) Rule 2006 of Ministry of Environment, Fore…

Uttarakhand High Court: Biodiversity boards can impose fees on Ramdev's Divya Pharmacy

By Mridhu Tandon
In a significant decision, the Uttarakhand High Court on December 21, 2018 has dismissed the writ petition filed by Divya Pharmacy founded by Baba Ramdev and Acharya Balakrishnan, challenging the demand of the Uttarakhand Biodiversity Board (UBB) imposing fees under the provisions of the Fair and Equitable Benefit Sharing (FEBS).

Modi becoming Prime Minister now appears to be an "accident" to the people of India

By Sandeep Pandey*
Anupam Kher's film 'Accidental Prime Minister' has targeted Dr Manmohan Singh who served for two terms and may be again acceptable for the job if his party regains power. But his tormentor Narendra Modi seems to be out of breath even before his first term is over. Disillusionment with him is so widespread and deep that people of India may not bear with him for another term. As the general elections approach again the difference between the two needs to be examined.