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AHMEDABAD
Editor’s Note
Content A
city can be considered truly
inclusive if a housing unit meets
every citizen’s requirement. With
a ‘Home for All’ by 2022 as a declared
mission of the ruling BJP government, it
is worthwhile to define the most
EWS/LIG HOUSING important category that contributes to
01
Urbanisation and migration has led to a rise of population in the city, both the housing shortages – Affordable
Housing. This has been a loosely used
urban and rural. This definitely puts a growing pressure on the housing
term over the past few years. Should it
demand in the city, particularly in the EWS and LIG segments. be categorised by size, price or just
categorised as EWS/LIG/MIG etc?
HOUSING SCHEMES Magicbricks sought official sources to
arrive at the shortfall numbers. We used
Talking about the scope of development in the affordable housing segment,
it is essential that the government takes steps to incentivise the private sector 03 Census 2011 as the base. The various
government-run schemes that target the
to encourage PPP models in this segment. EWS and LIG housing undertaken by
the AMC and AUDA have produced just
about 12,000-13,000 units. Supply
MAGICBRICKS STATS from other sources such as the Gujarat
Housing Board would also not be able
Magicbricks data reveals that there exists ample supply particularly of
plotted units in the budget range of upto Rs 10 lakh. As these stats are 07 to make up the existing demand (2.8
lakh approx) in the sector.
tracked on the basis of online activity of property buyers on Magicbricks, To engage the interest of the private
the negligible demand for properties in this budget are understandable. sector, financing for EWS and LIG has
to be stepped up with state run subsidies
INTERNATIONAL MODELS and tax reliefs to protect private
investment. In Ahmedabad, the finance
When India talks about its mission of LIG/EWS housing and ‘Housing for
All’ by 2022, it can seek learning from Singapore, a country which is a 09 initiatives include GRUH Finance Limited
and MAS Financial Services.
pioneer in the field of public housing with 82 per cent of its resident
According to PropIndex (Jul-Sep 2014),
population living in public-built houses. the quarterly publication that studies
demand and supply of listed properties
QUOTABLE QUOTES on Magicbricks, excess supply in the Rs
1 crore plus budget range in
Government authorities and real estate experts believe it is imperative to
target the EWS and LIG housing segment if India is to overcome the housing 11 Ahmedabad indicates that developers
are more inclined towards building
shortage it currently faces. luxury and upper mid income homes as
these fetch larger margins. To bring this
interest towards affordable housing,
urgent steps need to be taken is an
Content & Research Team: ambitious 8-year time frame. In this
publication, we have studied some
E Jayashree Kurup, Rishab Jain, Sruthi Kailas, Bhawna Mongia, Preeti Sharma,
international models to see if India can
Neha Nagpal, Renu Arya learn lessons from these.
Layout Design:
E Jayashree Kurup
Harsha Khattar Head-Content & Research, Magicbricks.com
jayashree.kurup@timesgroup.com
EWS/LIG HOUSING
A
s per Census 2011, the total supplied. This is clear by the number of such as AUDA (Ahmedabad Urban
population of Ahmedabad was people living in rental accommodations. Development Authority) and AMC
72,14,225. During 1991-2011, As per Census 2011, the total number of (Ahmedabad Municipal Corporation)
population in the city grew at a CAGR rented units under the EWS and LIG are coming up with schemes to cater to
of 2 per cent. At this growth rate, the categories (urban population) was this ever growing demand in these
current population can be estimated to around 1,84,600. If we add to this the segments, participation of private
be about 76,55,793. number of such units occupied by larger players is still limited. Thus, there still
Urbanisation and migration led to a rise families (more than 5 family members) exists a huge scope for development in
of population, both urban and rural. This we get a whopping figure of this sector.
puts a pressure on the housing demand 2,63,962 units. (*EWS and LIG housing is defined on the basis of
in the city, particularly in the lower end. This can be considered the unmet no. units under the 'no exclusive room and 1BHK
category. Affordable housing demand is taken as
Affordable housing is a major concern housing demand in these segments in
the sumation of no. of rented units under the
across the country and Ahmedabad is 2011. Thus, it can be estimated that in above two categories plus owned household units
no different. Availability of housing, 2014 this unmet demand would have that are occupied by more than 5 people &
particular in the *EWS and LIG grown to about 2,80,119 units. housing under any other category, as per
Census 2011.)
segments, seem to be grossly under- Even though the government authorities
01
02
HOUSING SCHEMES
“AT PRESENT, PRIVATE
DEVELOPERS ACROSS
F
or the scope of development Rs1 crore and above range.
in the affordable housing Though, there have been some
segment, it is essential that the private developers in Ahmedabad INDIA HAVE A TENDENCY
government takes steps to who have come forth with the TO BUILD LUXURY,
incentivise the private sector to Economically-Weaker Section UPPER SEGMENT AND
participate in the same. Some
important points:
(EWS) and Lower Income Group
(LIG) housing, private
MID SEGMENT HOUSES
participation in this segment still SINCE THESE FETCH
Developers leaves a lot to be desired. HIGHER MARGINS
Presently in India, private
Government schemes
WHEN COMPARED TO
developers have a tendency to LOW INCOME
build largely in the luxury, upper-
mid and mid-income segments
At present, it is only Ahmedabad
Urban Development Authority HOUSING”
(AUDA) and Ahmedabad
Municipal Corporation (AMC)
Demand and supply
who have launched certain
schemes that focus specifically on The effort government bodies are
the EWS and LIG segments. making in the affordable housing
direction, a look at the existing
These schemes include:
demand vis-à-vis the supply
l Around 2500 EWS and LIG through these schemes, indicates
under-construction units by that the segment remains grossly
AUDA in locations such as neglected. What is lacking is the
Nikol, Kathwada, Khodiyar etc. involvement of the private parties.
It would be a daunting task to
since these fetch higher margins l Around 10,000 EWS and LIG
meet the existing demand if the
as compared to the low income under-construction units by AMC
government does not provide the
housing. This is also indicated in under various affordable housing
required incentives to the private
the latest edition of PropIndex schemes. These houses are
developers. A public-private
(Jul-Sep 2014), the quarterly India coming up in 15 different
partnership is probably the only
Apartment Index by Magicbricks. locations, including localities such
solution in a scenario wherein
Demand and supply figures in as Vejalpur, Nikol, Chandkheda,
developers are unwilling to get
Ahmedabad show a significant Chandlodia, Thaltej, Kali, Vadaj,
into the affordable housing
over-supply of approximately Vastral, Kankaria and Shahibag.
segment unless they are offered
13 per cent for properties in the some subsidy on the land cost.
03
Site (Final Plot No Area of Plot in sq mt Total No. of Type of
sq m & ownership) Dwelling Units Dwelling Units
Affordable Housing Schemes by AUDA
86, T.P. –110, Kathwada 34106.68 1120 EWS
70, T.P. –110, Kathwada 12591.56 532 EWS
92, T.P. –110, Nikol-KathwadaRoad 8192 504 LIG
56, T.P. –60, Khodiyar 2808 152 LIG
60, T.P. –60, Khodiyar 2836 156 LIG
Affordable Housing Schemes by AMC
211, TP-16, Rakhiyal 5,585 288 EWS
152, TP-106, Vastral 6,782 220 EWS
188/A, TP-113, Vastral 11,355 656 EWS
90, TP-102, Nikol 10,204 1,024 EWS
132, TP-110, Nikol 10,432 EWS
192,193,194,TP-2 Central Zone 8,436.70 282 EWS
9,11,12,13,TP-14 Central Zone 6,586.90 168 EWS
50,TP-19 Kali 4,063 168 EWS
52,TP-19 Kali 6,501 276 EWS
407,2408,TP-28 Vadaj 5,101 190 EWS
824,TP-28 Vadaj 6,421 276 EWS
280,TP-38 Thaltej 3504 192 EWS
193,TP-45 Chandlodia-Gota 11870 528 EWS
78,TP-27 Vejalpur 3,332 144 EWS
77,TP-27 Vejalpur 9,636 480 EWS
Source: AUDA & AMC
04
Source: Magicbricks.com 07
MAGICBRICKS STATS
A
ccording to the data available with Magicbricks, and considering the price bracket of upto
Rs 40 lakh in Ahmedabad, more than 95 per cent demand exists for properties in the range
of Rs 20-40 lakh. However, supply in the category remained significantly short at
78 per cent. As this demand is tracked on the basis of online activity of property buyers on
Magicbricks, the negligible demand for properties upto Rs 10 lakh is understandable. Buyers
looking for these properties rarely have access to the internet. What is significant though is the
supply available in these budget categories in different property types. Let’s take a look:
Apartments Residential Houses Plots
l Apartments priced upto l Supply of houses was seen l Plots were the most supplied
Rs 20 lakh witnessed across budget ranges with property type within a price
negligible demand units priced upto Rs 10 lakh bracket of upto Rs 40 lakh
noting 17 per cent supply
l More than 95 per cent • Maximum supply was in the
demand for apartments was • Houses priced at Rs 10-20 upto Rs 5 lakh category at
in the Rs 20-40 lakh range lakh saw a moderate supply 36 per cent and Rs 5-10 lakh
of 17 per cent while more range saw a supply of over
l Almost 15 per cent supply
than 65 per cent was noted 15 per cent
was noted in the Rs 10-20
for properties in the Rs 20-40
lakh category • Supply of 24 per cent was in
lakh range
the Rs 10-20 lakh range.
l Apartments priced within
• Demand was also largely
Rs 30-40 lakh saw the • Maximum demand (47%)
concentrated in the Rs 20-40
maximum demand of more was in the Rs 30-40 lakh
lakh range
than 50 per cent budget range
08INTERNATIONAL MODELS
W
hen India talks about its cent of Singaporeans now live in cent owning such subsidised
mission of LIG/EWS public housing estates. These HDB leased homes.
housing and ‘Housing flats are sold on a 99 year lease In 1960, 1970 and1980, this
for All’ by 2022, it can learn from agreement, with almost 90 per ownership figure was at 9, 36
Singapore, a country which is a and 74 per cent, respectively.
pioneer in the field of public Those, who still could not afford
housing with 82 per cent of its the cheapest forms of public
resident population living in housing despite financial support,
public-built houses. are provided with rental flats.
Over the years, Singapore has
How is
implemented city planning and HDB Eligibility criteria
urban-management policies that successful
Buyers of HDB public housing
benefit the poor. Its housing
have to satisfy certain eligibility
programme has been successful l It received very strong conditions. These are:
and admired world wide for support from
producing low-cost affordable • Singapore citizenship
Singapore government.
housing on a large scale. • Non-owner of any other
Most of the residential housing l Large amount of funds property
projects are publicly governed were allocated to • Owner occupancy
and developed. They are
create public housing. • Minimum family size of two
managed by the Housing and
Development Board (HDB). These l HDB was given legal • Household income below the
houses are cheaper than the income ceiling set by HDB
powers, such as power
privately built homes and cater to These eligibility rules were very
both middle and upper-middle to resettle squatters.
stringent in 1960s-70s. They were
income groups. Located in self- relaxed slightly only when most of
contained satellite towns, these
l Compulsory land
acquisition allowed the the population had been
houses have facilities such as adequately housed.
supermarkets, schools, clinics, housing body to get
hawker centres and sports the land for public
recreational facilities.
Key learnings
housing in a country
• Government subsidies for public
The HDB built more than half a where land is scarce housing keep the cost and price
million units of public housing
and costly. well below the market rate.
from 1960-1990. About 85 per
09“ABOUT 85 PER CENT OF
SINGAPOREANS LIVE IN PUBLIC
HOUSING ESTATES. HOUSES
MADE BY THE HOUSING AND
DEVELOPMENT BOARD ARE AZ
IL Since 2009, Brazil has been
CHEAPER THAN PRIVATELY BR implementing an ambitious national
BUILT HOMES AND CATER TO social housing programme: “My
BOTH MIDDLE AND UPPER- House, My Life Programme”
MIDDLE INCOME GROUPS” (Programa Minha Casa, Minha
Vida - MCMVP). The initial goal
was to contract 1 million housing
• The functioning of HDB is a clear model units in the biennium 2009-2010.
for others to follow. HDB emerged as the
major land-acquiring authority by 1985.
The development body owned more than
three-quarters of the land in Singapore.
It is interesting to note that HDB does not INA
have its own land bank. It bids for land CH
from authorities, competing with other Since 1998, housing policies in
land users and government agencies. China focused on providing support
The eventual cost of the land remains to home ownership for the middle
considerable, yet well below the free
and high income families through
market price.
different financial arrangements.
• Compulsory land acquisition in
Singapore is supported by a sound
From over 80 per cent public rental
resettlement policy. The Resettlement in 1981, the country today has 80
Department has been a permanent per cent home ownership.
department within the framework of the
HDB since 1963. It is the central authority
for re-settling squatters from the state and
private land, required for development by
government and statutory boards. About 60 per cent Vienna’s
A
• Besides acquiring land cheaply, HDB also NN residents live in subsidised flats,
VIE
keeps the cost of production low, so this including both city-owned and
low cost can be passed on to the limited profit housing associations.
consumers, keeping the prices of housing
Affordable homes are provided
units commensurately low.
without sacrificing architectural
• The beginning of the housing policy was
from providing rental units. In 1964,
quality. Vienna distributes housing
when Singapore realised that the acute subsidies through a process known
housing shortage had been eased, it as Bauträgerwettbewerbe or
launched a new scheme called ‘Home Developers’ competition.
Ownership for the People’ to provide and
assist people to purchase low-cost flats.
10QUOTABLE QUOTES
Meenaxiben Patel
Anandiben Patel Mayor
Chief Minister Ahmedabad
Gujarat
We not only focus on providing homes to The municipality envisions a city
the poor, but offer them basic facilities such where every person owns a pukka
as water, schools, electricity and healthcare home equipped with all the basic
facilities. As per the Mukhya Mantri Gruh facilities such as water and
Yojna, the city aims to be slum-free by providing electricity supply. The corporation
‘Housing to All’. Under the scheme, about and the government are working
22 lakh homes are planned in the urban along with private players on
areas and another 32 lakh are being several schemes to achieve this
planned in the rural areas. The scheme target. The government is targeting
includes the EWS who earn less than the unused and vacant land to
Rs 1 lakh annually, LIGs who earn construct these homes. In February
between Rs 1-2.5 lakh per year and 2014, approximately 11,000
MIGs earning above Rs 2.5 lakh per homes were allotted to people
year. They will be provided with easy below the poverty line. More such
loans, installments and interest schemes are expected in future.
subsidies.(as on Feb 2014) (as on Feb 2014)
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