History of RE & GOI Policies (No4)_ppt

8/2/2019 History of RE & GOI Policies (No4)_ppt

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History of Real Estate

ASUM

MBA (UI & REM)

AMITY UNIVERSITYUTTAR PRADESH


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History of Real Estate in India

Till 1960, the sector was unorganized

and perceived as risky and speculative.Developers were funded by money

lenders while Customers accumulated

funds from their own savings and sale ofland, ornaments etc.

Banks did not provide mortgage finance

till 1970.HUDCO was set up during 1970 & 1nd

HFI during 1977 to finance housing

projects.


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In the late 1980s, the GOI started

recognizing the integral role of housing

in the overall economic development ofthe country.

In 1988, the NHB was set up to channel

resources to housing finance.GOI introduced the draft National

Housing Policy, which was later adopted

by the parliament in 1994.


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The RBI guidelines of 1989 requiredcommercial banks to set aside at least

1.5% of their incremental deposits for

housing finance.

During 1980s and 1990s, housing

finance institutions emerged as the keylenders in the real estate sector.

Further, interest rates continued to be

regulated by NHB until as late as 1994. In 2002, the GOI permitted 100% FDI.


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Gruesome situation of housing.

Uncontrolled population explosion esp.

in urban areas.

Requirement of massive participation of

private sector.

What data says: By 1997 India had an estimated housing shortage

of 13.66 million units, out of which 7.57 million units were in theurban areas.


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Role of Government after policy

formulation

REGULATOR FACILITATOR


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NEED AIM TARGET

For sustainable

development of

infrastructure.

Fostering PPP forpurpose of housing

HOUSING FOR

ALL

Construction of 2

million houses

every year.

Out of which 0.7 millionare to be constructed in

urban areas


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NEED AIM TARGET

Rapid pace of

urbanization.Migration from rural to

urban areas.

Mismatch between

demand and supply.

HOUSING FOR ALL The NURM with the

annual outlay ofapproximately Rs.5,500

crores in 2005-06 would

support 60 cities (7

mega cities, 28 metro

cities and 25 category`C cities) across the

country in terms of

investments into

infrastructure gaps,

taking the urban systemfrom a non-conforming

state to a conforming

state with proper

planning and all urban

infrastructure in place.


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NEED AIM TARGET

Urbanization andDevelopment

Rural To Urban Shift of

Labour

Balanced Regional

Development

New Integrated

Townships and Green

Field Development

Urban Planning

Affordable Housing

Increase Supply ofLand

Special Provision for

SC/ST/OBC/Minorities/

Disabled

Special Provision forWomen

Employment

Generation

Public-Private

Partnerships

Management

Information System

Healthy Environment


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In Urban Areas, more than 97% of thetotal housing requirement i.e. 25.73

million units required for poor andlow income segment households(As per MH&UPA, GOI)

In Rural Areas, more than 90% of thetotal housing requirement i.e. 42.68million units required for BPLHouseholds.

(As per Working Group Report on RuralHousing, MORD, GOI)

Average Per annum Funds Requirementsduring 2007-12 = Rs.1,20,00 crores

Estimated Housing

Requirements

during 2007-12

UrbanAreas 26.53 million units

(24.71 million in 2007)

RuralAreas 47.43 million units

Total (All India) 73.96 million units

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Growth of housing finance is about 30% during last three years

But, housing requirements for poor/EWS increased

Need to not only develop New Financial Architecture but also

Policy and Regulatory Framework for Affordable Housing

on sustainable lines for poor/EWS


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Therefore,

The test of our progress is not whether

we add more to the abundance of thosewho have much; it is whether we provideenough for those who have too little.

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Future Theme

Development of Market based Housing Finance Systemfocusing on Unserved and Underserved segments

To bring appropriate changes in policy & regulatory framework

Catalyze Increased Investment through Private SectorParticipation/Builders

Objective

To reduce housing shortage for poor/EWS

To introduce customised housing cum income generatingproducts for poor/EWS

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Jawahar Lal Nehru Urban Renewal Mission (JnNURM)for bringing appropriate policy and legal reforms forproviding affordable housing to poor/EWS

Emphasis on Public Private Partnership focusing on

housing for poor/EWS

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Thrust of Policy Initiatives :Affordable Housing


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Conclusion

Providing adequate housing to all is not aninsurmountable goal. Governments need tolook at the settlements of the poor not aspart of the problem but as part of the

solution and to look at the poor not asbeneficiaries but as the primary actors atthe centre of their own development. Withthese attitudinal changes and with thepolicies outlined above, the right toadequate housing can be operationalizedand realized.


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Thank You

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History of RE & GOI Policies (No4)_ppt