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Ways to achieve Housing for All by 2022

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Housing for All by 2022

Industry experts believe that releasing the land held by government bodies, development of peripheral areas in proximity to business centers and streamlining the approval process is a must in order to achieve ‘Housing for All’ by 2022.

While there has been much talk around the Pradhan Mantri Awas Yojana by 2022 (Housing for All) scheme, when it comes to its implementation, not much is being said. 99acres gathered the below suggestions from industry experts along with ideal models that we can learn from.

Affordable housing experts advice

Affordable housing experts advice-1

Models from which we can learn:

In India, Rao says, “models such as Gujarat Housing Model, DDA land pooling policy and the Rajasthan PPP model can be replicated or learned from. These are all successful models that have delivered thousands of affordable housing units.”

Apart from this, there are various models that are in operations abroad that can be tweaked in India. Jain gives an example of Singapore:

Public housing in Singapore is developed and operated by Housing Development Board (HDB), which is an intermediary between the government and the end-users. Over the half-century since gaining self-governance, the country’s comprehensive approach to develop housing has produced more than one million homes, housing more than 80 per cent of the population.

When Singapore’s HDB was created in 1960, less than nine per cent of Singaporeans lived in government housing. HDB first needed to acquire land, a scarce and costly resource in a country that is just over 700 sq kms. The government passed a series of laws to expedite the process of acquiring private land that allows it to acquire property at the current use value, which is often below the market price since the current use is at low density levels and does not account for the full development potential of the land after densification and infrastructure improvements. HDB then acquires this land from the government at a further discount, allowing for a significant reduction in costs.

Land is then rezoned to allow for significantly higher density and the government invests in infrastructure development in these areas. Furthermore, HDB recoups some of the land cost through leasehold sales, under which flats are sold under 99-year leases, with the government retaining ownership of the land. HDB provides 25-30 year term loans at interest rates that are 1-5 per cent lower than market rates. HDB uses a combination of subsidy, low-interest loans, and direct savings through the Central Provident Fund, a mandatory government savings account to fund social security payments. HDB offers mortgage loans to eligible buyers, which are funded by government and offered at the Central Provident Fund saving rate plus one percentage point.

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