SHIVAM GUPTAVIJETA SHARMAVAIBHAV SAXENASHRIPAL HAJARISUMANT SULABH ARORA Affordable

housingThe need of an hourPrice Matters!!!

CONTENT Introduction Factors responsible for high pricing Income level and housing affordability Major hubs for affordable housing development Push and pull factor Demand and supply dynamics of housing for

variable Policies and framework Measures to control housing rates Monitory and fiscal policies

INTRODUCTION The current population of India is 133 CRORES

as of Monday, November 21, 2016, based on the latest United Nations estimates.

India population is equivalent to 17.84% of the total world population.

India ranks number 2 in the list of countries by population.

32 % of the population is urban (42.9802 crores people in 2016)

Population residing in urban areas in India, according to 1901 census, was 11.4%. This count increased to 28.53% according to 2001 census, and crossing 30% as per 2011 census, standing at 31.16%.

Some of the major problems of urbanisation in India are: Urban Sprawl Overcrowding Housing Unemployment Slums and Squatter Settlements Transport Water Sewerage Problems Trash Disposal Urban Crimes Problem of Urban Pollution!

Definition According to Economic Times:

Affordable housing refers to housing units that are affordable by that section of society whose income is below the median household income.

Factors responsible for high pricing Demography Policies Increasing Demands Developers

Budget 2016• Rs.4000 Cr for National Housing bank.• Long term fund for soft lending for homes buyer for up to 50L in 6

metro cities.• Exemption from service taxes for those undertaking affordable

housing project.• Deduction for additional interest of `50,000 per annum for loans

up to 35 lakh sanctioned in 2016-17 for first time home buyers• Extend excise duty exemption, presently available to Concrete

Mix manufactured at site for use in construction work to Ready Mix

Concrete.

Housing for All by 2022” Mission – National Mission for Urban Housing

• Fiscal deficit in RE 2015-16 and BE 2016-17 retained at 3.9% and 3.5%.

• Revenue Deficit target from 2.8% to 2.5% in RE 2015-16• Total expenditure projected at ` 19.78 lakh crore

Budget 2016 Housing for All by 2022” Mission – National

Mission for Urban Housing • Slum rehabilitation• Promotion of affordable housing for weaker section

through credit linked subsidy• Affordable housing in partnership with Public &

Private sectors • Subsidy for beneficiary-led individual house

construction or enhancement

Conclusion

• Historically, housing for poor and economically weaker section of the society has been provided by the government under various welfare scheme.

• The main reason for affordable housing on supply side is lack of availability of urban land, rise in construction cost, regularity issues, lack of access to home finance for low income groups.