You are on page 1of 7


Submitted to:Ar.Jit Kumar Gupta Submitted by:- Shweta sehgal 2/7/2011

What is the role and importance of housing? Housing is an envelope to meet the basic necessity of life and social growth. Housing as an activity not only fulfils the basic shelter needs of the population, but is also recognised as a productive activity, which contributes significantly to the generation of employment. Housing contributes to national income, national wealth and national employment. Housing determines the quality of life and provides security to a family. Housing provides 6% of gross domestic product (GDP).

In India GDP is six times more progressive than industry and four times more progressive than agriculture. Housing has a multiplier effect on economy. Housing is known as the index of growth and development of a country. Housing has major contribution in construction industry in India and 31million people are engaged in construction. Housing has economic connotation. There are 290 industries which produces the goods, materials, fixtures, equipments, etc to be required in the construction of houses, i.e. high growth in industrial sector is due to the construction of houses. It leads to large scale industrialisation. Housing is necessary for creating healthy environment.

What is the housing problem in India? Housing problem in India is very chronic, particularly among the low income group. The housing problem revolves around following important factors such as :Scarcity of land Rapid growth in Population Shortage of housing Increase in the cost of construction

Scarcity of land
Housing is the major consumer of land and the availability of land is less as compared to number of people. India has 17% of human population of world and the availability of land is 2.3%. Housing is viewed in two context:Housing Qualitative Quantitative

Qualitative aspect: Structure pucca house, semi-pucca house, katcha house. The quality of urban housing, it is estimated that about 45% of urban population live in pucca houses, 35% live in semi-pucca houses and 20% live in katcha houses. Total Requirement of Housing during the Eleventh Plan Period New Requirement Households - Pucca 6.00 - Semi Pucca 0.89 - Kutcha 0.38 Total Housing Stock 7.27 Tenurial status of households the portion of households living in owned houses is increasing steadily in urban areas and those living in rented houses are decreasing both in urban as well as rural areas. Households and number of rooms- According to recent surveys conducted in metropolitan cities above 45% people live in one room tenements; about 15% in two room tenements; about 10% in three room tenements; a lucky lot of 5% live rather comfortably, in four or more roomed flats, while 25% live in squatter settlements, slums and foot-paths.

Quantitative aspect: Housing situation can be measured on the basis of number of house and households Households- unit of family with independent kitchen. No. of houses = no. of households

Shortage of housing
Housing shortage = (no. Of households no. Of houses) + kachcaha houses +no. Of households to be replaced.

In India there is shortage of houses in economically weaker sections. Low supply of housing for low income earners As per 11th 5 year plan Shortage of 24.71 million dwellings Close to 99 % of shortage in EWS & LIG segment

Short Supply of residential dwellings Supply shortfall existing since post independence In 2005 estimated demand is 209.5 million, supply is 189.7 Million Demand Supply gap is narrowing

Natural growth of urban areas: Rural population growth - 0.7% Urban population growth- 2.1% The urban population has therefore increased by about 30millin in the last decade and now about 150million people live in towns and cities, ranging in population from 5000 to 5million. This has resulted not only in over-crowding and congestion in towns and cities but also aggravated acute shortage of housing. India has lifted 59.7 million people out of slum conditions since 2000. Slum prevalence fell from 41.5% in 1990 to 28.1% in 2010. This is a relative decrease of 32%. Absence of portable water supply 28% houses does not have tap or access to portable water. Absence of sanitation or sewerage facility. Only 28% of houses have sanitation facility. There is a short supply of electricity. High degree of vacancy 15 to 20% of house are vacant. High degree of destruction on housing stock on annual basis. 3%to5% of houses are lost due to natural disaster. High cost of land or non availability of unauthorised land. Most of land available is unauthorized.

Housing problems is more acute on the larger urban areas. Problem of legal framework rent laws. Laws are tilted on the favour of tenant not in the favour of owner. Non utilization of full potential of the land or lack of optimum utilisation of land. In India there is problem of plotted land than flat development. Size of plot is a problem because there are larger plots which are lying vacant.

Minimum size of household -225sq.ft and minimum area for a person-45 sq.ft. But more than four to five people live in a room of size 100sq.ft. There is no rationality in fixing the size of a plot. The cost of construction is increased. In India the there is longer time of construction. There is no mechanisation or standardisation of housing. Registration fee of housing is high. High interest rate, high stamp duty or transport fee etc. Poor supply of housing in EWS and LIG. There is a problem of poor maintenance and upkeep of houses which is particularly seen in houses with low rental values.

What are solutions to the problems of housing in India?

To solve the problem of housing in India government should reduce the cost of transaction fee. Provision of land for adequate housing. Reduce the cost of land and increase the supply of land. Government should promote flatted development over plotted development. To encourage Co-operative sector and should be at priority for provision of land. Government should make a law mandatory that no household should own more than one house. All buildings should be constructed according to byelaws so that they can withstand natural calamities/disasters. Standardisation, pre-fabrication, mechanisation should be provided so that the building becomes cost effective. There should be upgradation in kutcha houses to semi-pucca or pucca houses. There should be a provision of standard design of houses. Penalty should be charged if a house is left vacant. Proper provisions for supply of electricity, water.