Housing and settlement system

7/13/2017 Housing and Settlement System
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National Mission Project on Pedagogy(Main
Phase)
Course Name: Housing and Settlement System
(Full Content)
Principal Developer: Nikhil Ranjan Mandal
1. Institute's Mission:
To serve humanity by creating professionally competent, socially sensitive
engineers with high ethical values who can work as individuals or in groups in
multicultural global environments.
To produce outstanding engineers, brilliant researchers and teachers, great
entrepreneurs and leaders.
To create individuals who can continue to learn on their own to scale greater
heights in their profession.
To produce individuals, who can make signiﬁcant contribu ons to the advancement of the society and
make it a be er place to live.
2. Institute's Vision:
To be a centre of excellence in education and research producing global leaders in
science, technology, entrepreneurship and management.
To be a place where knowledge is created in frontier areas of science and
technology.
To be counted amongst the leading institutions in the world.
To be counted as one of the top ‘innovative leaders’ in the area of technical
education.
3. Program Objective:
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4. Course Overview:
Access to safe and secure housing is one of the most basic human rights. Human rights are protected by a number of
international human rights treaties, including the International Covenant on Economic, Social and Cultural Rights (ICESCR) and
the United Nations Human Settlements Programme (UN–Habitat), which is the United Nations nodal agency for human
settlements and sustainable urban development, that identifies and lists ‘Housing’ to be so.
Housing as a subject may be conceived as a combination of inputs of ‘housing design’ and aspects of housing planning together
with factors related to settlement planning that affects housing.
This course intends to familiarize the undergraduate students of architecture with different aspects of housing as well as
settlement planning that affects housing so as to enable them to formulate schemes and prepare housing layouts together with the

knowledge gained in other theory and sessional / practical subjects of the whole programme particularly those related to principles
of architecture, and architectural design (studios). The course would also help undergraduate students of and physical planning of
urban settlements.
5. Course Objective:
5.1: Comprehension:Explain:--Explain the comparative advantages of different types of housing and methods of delivery
of housing in India.
5.2: Knowledge:Identify:--Identify and explain the issues involved with changing policies for housing
5.3: Analysis:Analyze:--Analyze the different factors affecting the Indian housing market
5.4: Analysis:Analyze:--Analyze the nature and causes of growth of deficient housing/slums and identify differentiated
needs across identified lower income categories
5.5: Comprehension:Explain:--Explain the significance of the slum related policies/ programmes, identify the scope of
improvement, measures to arrest the urban migration and formulate slum improvement schemes.
5.6: Evaluation:Evaluate:--Evaluate and apply the settlement plan provisions affecting the housing delivery and
development
6. Course Modules:
6.1 Module:Housing: Types and Methods of Delivery
6.1.1 Module Overview:
Housing is one of the basic requirements for human survival. For a normal citizen owning a house provides significant
economic and social security and status in society. Housing is at the centre of an ensemble of life issues, including the
child’s right to be brought up in a safe environment. The rights to housing and security are interconnected.
This module is intended to equip the students with the understanding of housing and its types based on physical
characteristics, mode of delivery and typologies based on special purpose. The social aspect of housing is dealt in terms of
its role in socio-economic development of the country, as an index of social welfare and quality of life and its role as
employment generator.
Housing being a priority sector, in India, uncontrolled privatisation is not considered to be a solution. Therefore, in recent
past, the concept of public-private partnership or a joint enterprise of the public and the private sectors has become a
popular term in the housing development lexicon. This module examines the need of PPP in housing sector along with its
different models, advantages, disadvantages and apprehensions.
6.1.2 Module Objectives:
6.1.2.1 Analysis:Relate:--Relate housing as a sub-system of a larger system of a habitation
6.1.2.2 Comprehension:Classify:--Classify different aspects of housing on the basis of visual characteristics, methods of
delivery or any specificity of purpose.
6.1.2.3 Comprehension:Discuss:--Discuss the role of housing in socio-economic development and quality of life
6.1.2.4 Evaluation:Assess:--Assess relative advantages and disadvantages of different typologies of housing
6.1.2.5 Comprehension:Indicate:--Indicate the need and characteristics of different types of special purpose housing.
6.1.2.6 Evaluation:Assess:--Assess the advantages, disadvantages and apprehensions associated with PPP in housing
6.1.2.7 Evaluation:Deduce:--Deduce the indicators of housing domain responsible for Quality of life.
6.1.3 Module Units:
6.1.3.1 Unit:Concept of â€˜housingâ€™and classiﬁcation of its diﬀerent aspects
6.1.3.1.1 Unit's Summary :
Housing is a basic need of human being. In the hierarchy of importance, it is third after food and clothing. The importance
of housing was universally accepted from the dawn of history. Even the Neolithic man who lived between 10,000 and 2000
B.C. built durable habitation like pit dwellings, lake dwellings and beehive huts. However, its functions increased manifold
over the years. Primitive men sought some kind of protection against wild animals and natural calamities.

With the development of knowledge and the advancement of civilization, people became particular about sanitation,
environment, privacy, location of house, etc. He becomes more conscious of better facilities, which make his life easy and
very comfortable. With the invention of electricity and other facilities the development of housing became more important.
Then man began to bring electricity, toilet, bath, washbasin etc. within the walls of his house. Houses become useful in
various ways. A house is the place where one can take rest, sleep and cook food. A house can also be used partly as a
shop, work place, or a place for business for any type of activities. In developed countries the top most executives bring
their work home in their own briefcases and get it done in the home at night. A significant percentage of recreational
activities is being brought into the house with the advent of television, radio, computer, recorded music etc. As per the
available information man spends a good part of his lifetime in his house. This clearly indicates the fact that a house is a
part and parcel of a man’s life.
Housing- A Right
According to noted psychologist Abraham Maslow's Hierarchy of Human Needs theory, a human being's need to belong
in society is third only to a person's physiological and safety needs.
Classic social exclusion deprives certain individuals of the basic human need of societal belonging as a result of
economic status, disability or circumstance which include race, religious belief, gender, age etc.
For an ordinary person, owning a house provides significant economic and social security as well as a certain status in
society.
Housing is believed to be at the centre of an ensemble of life issues, including the child’s right to be brought up in a safe
environment.
The rights to housing and security are seen to be inter-connected. Housing is related to both of the foremost needs
indicated by Maslow.
Access to safe & secure housing is a basic human right.
Human rights are protected by a number of international human rights treaties - International Covenant on Economic,
Social and Cultural Rights (ICESCR) identifies and lists ‘Housing’ to be so.
the goal of the ‘National Urban Housing and Habitat Policy’ (2007) of India is stated as “.. to ensure sustainable
development of all urban human settlements, duly serviced by basic civic amenities for ensuring better quality of life for
all urban citizens…”,
while its ‘focus areas’ include, inter alia, “provision of Affordable Housing for All” with special emphasis on vulnerable
sections of society.
The goal of providing affordable housing for all is not easily met anywhere in the world and it is extremely difficult and
beset with acute problems in a country like India which is developing, second most populous and continues to have a
high rate of population growth & urbanisation. Housing Planners commonly believe that a nation cannot develop if its
citizens are not properly housed.
House: A dwelling that serves as living quarters for one or more families.
However, [for census enumeration in India]
Census House:
A 'census house' is a building or part of a building used or recognised as a separate unit because of having a
separate main entrance from the road or common courtyard or staircase, etc.
It may be occupied or vacant.
It may be used for a residential or non-residential purpose or both.
If a building has a number of flats or blocks which are independent of one another having separate entrances of
their own from the road or a common staircase of a common courtyard leading to a main gate, these will be
considered as separate census houses.
Housing: Structures collectively in which people are housed. As a concept it brings in the concept of sharing utility
services & facilities / amenities.
1. Utility Services related Physical Infrastructure: Access roads, Water, Electricity, Storm & Waste Water
Drainage, Communication etc. networks, Cooking Gas depot/ supply network, Solid Waste Disposal
facilities/system
2. Facilities / Amenities related Social / Physical Infrastructure : Education, health, open spaces, religious & other
recreational, convenience shops, security etc….
Household: [Census of India]
A 'household' is usually a group of persons who normally live together and take their meals from a common kitchen
unless the exigencies of work prevent any of them from doing so.
Persons in a household may be related or unrelated or a mix of both.
However, if a group of unrelated persons live in a census house but do not take their meals from the common
kitchen, then they are not constituent of a common household. Each such person should be treated as a separate
household.
The important link in finding out whether it is a household or not is a common kitchen. There may be one
member households, two member households or multi-member households.
In a few situations, it may be difficult to apply the definition of household strictly as given above. For
example, a persons living alone in a census house, whether cooking or not cooking meals, will have to be
treated as a household. Similarly, if husband and wife or a group of related persons are living together in a
census house but not cooking their meals will also constitute a normal household.

Household: [Census of UK]
One person or a group of people who have the accommodation as their only or main residence
AND (for a group)
either share at least one meal a day, or
share the living accommodation, that is, a living room or sitting room
[The occupant(s) of a bedsit who does / do not share a sitting or living room with anyone else comprise a single
household]
Institutional Household: [Census of India]
A group of unrelated persons who live in an institution and take their meals from a common kitchen is called an
Institutional Household.
Examples of Institutional Household are boarding houses, messes, hostels, hotels, rescue homes, jails, ashrams,
orphanages, etc.
Communal Establishments [Census of UK]
[as compared to Institutional Household in India]
Establishments providing managed residential accommodation,
are not counted in overall housing supply
These cover university and college student, hospital staff accommodation, hostels/homes, hotels/holiday
complexes, defense establishments (not married quarters) and prisons.
However, purpose-built (separate) homes (eg self-contained flats clustered into units with 4 to 6 bedrooms for
students) should be included. Each self-contained unit should be counted as a dwelling.
Dwelling: [Census of UK]
[a dwelling is defined (in line with the 2001 Census definition) as-]
a self-contained unit of accommodation.
Self-containment is where all the rooms (including kitchen, bathroom and toilet) in a household's accommodation
are behind a single door which only that household can use.
Non-self contained household spaces at the same address should be counted together as a single dwelling.
Therefore a dwelling can consist of one self-contained household space or two or more non-self-contained
household spaces at the same address.
Ancillary dwellings (eg former 'granny annexes') are included provided they are self-contained, pay separate
council tax from the main residence, do not share access with the main residence (eg a shared hallway) and there
are no conditional restrictions on occupancy.
6.1.3.1.2 Unit's Objectives:
6.1.3.1.2.1: Analysis:Differentiate:--Differentiate between house and housing
6.1.3.1.2.2: Comprehension:Classify:--Classify the various aspects of housing
6.1.3.1.2.3: Comprehension:Discuss:--Discuss the various components of housing.
6.1.3.1.3 Unit Level Problems:
6.1.3.1.3.1 Question:->
Differentiate between house and housing
Solution: To Get the Solution Click Here
6.1.3.1.3.2 Question:->
How the Census of India defines a Household? How it differs from the definition adopted by the Census of UK?
6.1.3.1.3.3 Question:->
Define Institutional Household and Communal Establishments.
6.1.3.1.3.4 Question:->
What are the various components of housing?

6.1.3.2 Unit:Signiﬁcance of â€˜Housingâ€™in social development
Role of housing in socio-economic development
Housing holds the key to accelerate the pace of development as Investments in housing like any other industry, has a
multiplier effect on income and employment.
It is estimated that overall employment generation in the economy due to additional investment in the
housing/construction is eight times the direct employment (IIM-Ahmedabad Study, 2000).
The construction sector provides employment to 16% of the work force (absolute number 146 lakh-1997). It is growing
at the rate of 7%. Out of this, the housing sector alone accounts for 85.5lakh workers.
However nearly 55% of them are in the unskilled category. Housing provides employment to a cross-section of people
which importantly include poor. [such employment is critical to avoid social unrest]
Housing also provide opportunities for home-based economic activities.
Adequate housing also decides the health status of occupants.
On account of health and income considerations, housing is a very important tool to alleviate poverty and generate
employment.
Adequate housing [with territoriality & distinct boundaries] reduces social tension and fosters peace in society
Provides sense of security, privacy, context for social interaction & allows desired growth & fulfillment of individuals
6.1.3.2.2.1: Comprehension:Discuss:--Discuss the role of housing in socio-economic development
6.1.3.2.2.2: Analysis:Relate:--Relate housing as an index of social welfare and quality of life
6.1.3.2.3.1 Question:->
Discuss the role of housing in socio economic development.
6.1.3.2.3.2 Question:->
How can you relate housing as an index of social welfare and quality of life?
6.1.3.3 Unit:Typology of Housing based on common Physical Characteristics
On the basis of materials used in the construction of houses mainly wall and roof, Census of India classified the houses in to
three categories viz. pucca, semi-pucca and kutcha.
Permanent House: [Pucca]
Houses with wall and roof made of permanent materials. Wall can be G. I., Metal, Asbestos sheets, Burnt bricks,
Stone or Concrete. Roof can be made of Tiles, Slate, G.I., Metal, Asbestos sheets, Brick, Stone or Concrete
Semi Permanent House: [Semi-Pucca]
Either wall or roof is made of permanent material (and the other having been made of temporary material
Temporary House: [Kuchha]
Houses with wall and roof made of temporary material. Wall can be made of Grass, Thatch, Bamboo etc., Plastic,
Polythene, Mud, Unburnt brick or wood. Roof can be made of Grass, Thatch, Bamboo, Wood, Mud, Plastic or
Polythene
Serviceable Temporary : [Kuchha - I]
Wall is made of Mud, Unburnt bricks or Wood
Non-Serviceable Temporary : [Kuchha - II]
Wall is made of Grass, Thatch, Bamboo etc., Plastic or Polythene
Types of Housing based on common Physical Characteristics
Detached ,
Semi-detached,
Row housing,
Town house,
Apartment / Flats, etc
Detached houses: It is characterized by being a completely independent structure and housing one family. The single-
family detached housing is generally considered to be the best type of housing. This type of dwelling occupies its own

structure from ground to roof and is separated from other dwellings by open spaces. The property lines and density are
influenced by zoning and subdivision regulations which specify both minimum plot area and dimensions. The detached house
can either have a built-in garage or a detached one. It must be understood that a detached house can take on any form or
style. As long as no walls of the structure are connected to another dwelling, the house remains to be a detached house.
One advantage of a detached house is the fact that the free space surrounding the building is private to the owner and his
family. Depending on local regulations and codes, you can do whatever allowable extension or modification you would like to
be done in your house. You would not need to pay property management fees like those paid by condominiums and
townhouse dwellers.
The disadvantage is that all repairs and maintenance of the house and lot is at the expense of the owner. Every site
improvement like adding a patio or a pool or a garden is at the expense of the owner too.
Semi-detached Houses: A semi-detached house is a pair of houses joined together by a common wall. One side of each
house shares a common wall, while the other is detached. This type of housing is called a duplex in other parts of the world.
It became popular in the UK and Ireland in the 1920s and the 1930s.
One advantage of living in a semi-detached house is that there is still a level of privacy even if one wall is shared by the two
houses. A glaring disadvantage is that the upkeep of your side of the property still falls only on you. Another disadvantage is
that you cannot just plan extensive renovations and extensions as you have to consider your twin house.
Town House/ Row Housing: Row houses are multiple dwelling units arranged in rows, each with exterior ground floor
access. These type of houses are characterised by relatively narrow and deep proportions with windows at the front and
back. Access to sunlight depends on the orientation of the lot. Terraces whose windows only face east or west are the most
constrained. These houses allows for private entries to individual dwellings within a narrow street frontage, thus minimizing
length of utility runs and provides relatively low rise dwellings with medium to high density
Apartment: A flat or an apartment is a living area that is part of a building. Usually, a flat is situated in a building that is
split up into multiple living areas for different residents. A flat can be a studio unit, a one- bedroom, two-bedroom or three-
bedroom unit.
The main disadvantage of renting out a flat is that the unit will never be yours. You do not have the right to make
improvement on the premises to suit your needs unless you ask permission from the landlord. The one advantage of renting
a flat is that you don't have sole responsibility on the property as you are only renting. In case you feel like changing
locations, you can just finish your lease term and leave after.
6.1.3.3.2.1: Analysis:Distinguish:--Distinguish between different typologies of housing based on physical characteristics:
Detached, Semi-detached, Row housing, Town house, Apartment, Farmhouse etc
6.1.3.3.2.2: Evaluation:Assess:--Assess relative advantages and disadvantages of the different typologies
6.1.3.3.2.3: Analysis:Distinguish:--Distinguish the following categories of ‘Census Houses’ with residential use: a]
Permanent houses ( Pucca), b] Semi permanent houses ( Semi- Pucca), c] temporary houses ( Kuchha-I). d] Non
serviceable temporary houses ( Kuchha-II).
6.1.3.3.3.1 Question:->
Distinguish between different typologies of housing based on physical characteristics: Detached, Semi-detached, Row
housing, Town house and Apartment.
6.1.3.3.3.2 Question:->
Distinguish the following categories of ‘Census Houses’ with residential use: a] Permanent houses ( Pucca), b] Semi
permanent houses ( Semi- Pucca), c] temporary houses ( Kuchha-I). d] Non serviceable temporary houses ( Kuchha-II).
6.1.3.3.3.3 Question:->
Compare the advantages and disadvantages of: a) Detached & b) Row housing.
6.1.3.3.3.4 Question:->
Compare the advantages and disadvantages of: a) Walk-up & b) High rise apartments.
6.1.3.4 Unit:Typology of Housing based on mode of delivery [in terms of land subdivision and ownership]

The Classification of housing based on mode of delivery [in terms of land sub-division, and ownership] is as follow:
i)Plotted and Group Housing,
ii)Cooperative,
iii)Self Help,
iv)land Leasehold,
v)Freehold / Condominium,
vi)Rental Housing
Classification of housing based on mode of delivery in terms of land sub-division
The residential areas are developed either as (a) plotted development or (b) group housing/flatted development in terms of
land subdivision. The density pattern i.e. (high density, high medium density, low medium density or low density) are
followed for working out the pattern of development with respect the size of the plot to number of dwelling units on each
plot, setbacks, FAR and the number of storeys/height of the building. The municipal and social infrastructure as per the
norms and standards specified in the master plan are provided. The various sites/plots required for social and municipal
infrastructure are indicated in the layout plans. The development norms for different use/activities and on different size of
plots are applied for sanctioning of the plans. These are based on development control rules applicable to the city/town.
Plotted development: The layout plans for residential scheme are formulated keeping in view
(1) that there would be sufficient light and air in the buildings when constructed
(2) that there would be protection against noise, dust and local hazards
(3) that there would be sufficient open space for various family needs
(4) that the circulation and access is easy and is safe from accident point of view
(5) that, as far as possible, the plots are of regular shape and size and
(6) these are logically arranged in a systematic manner so as to give a regular pattern of development in the form of row
houses, detached and semi-detached houses and if necessary the regular bungalow type sites.
For low-income group the minimum plot size should not be less than 30 sq.mt. However, the plot size may vary depending
upon the type of the housing, needed for a particular city based on general affordability of the people. The size of the plot
would also depend on the number of dwelling units to be permitted on each plot.
Group housing: Housing for more than one dwelling unit, where land is owned jointly (as in the case of co-operative
societies or the public agencies, such as local authorities or housing boards, etc) and the construction is undertaken by one
Agency. The number of dwelling units are calculated on the basis of the density pattern given in the development plan,
taking into consideration a population of 4.5 persons per dwelling unit.
Classification of housing based on mode of delivery in terms of ownership
Co‐operative housing: Housing cooperative has been defined as: “A legally incorporated group of persons, generally of
limited means, pursuing the same cause of meeting the common need of housing or its improvement based on mutual
assistance. In such a cooperative, the membership is voluntary and control is democratic, and members make an
approximately equal contribution to the capital required”.
A housing cooperative is a legally established association that is owned and democratically controlled by its members for the
primary purpose of improving their living conditions. Democratic control by residents, open and voluntary membership,
limited return on membership investment, the expansion of services beyond merely the supply of housing to the provision of
a wide range of community services, and a strong emphasis on self-help and cooperative action are the basic characteristics
of housing cooperatives.
Self-help housing: “Self-Help Housing” involves groups of local people bringing back into use empty properties that are in
limbo, awaiting decisions about their future use or their redevelopment. It differs from “self-build housing”, which involves

constructing permanent homes from scratch.
Self help housing groups negotiate with the owners of empty properties for their use and then go on to organise whatever
repairs are necessary to make them habitable. These are normally groups of people who can’t afford to buy their own
housing and whose housing needs are such that they will not be offered a permanent tenancy by the local authority or a
housing association ( eg all sorts of single people, couples, young people, refugees etc).
The properties are often “borrowed” on the basis of a licence or sometimes a lease, for a specified period of time. On
occasion, future plans change and the buildings may even become available on a permanent basis.
Condominium
A condominium is actually similar to an apartment, except for some additional factors. The additional factors are:
1. It must have common facilities, e.g. pool, tennis courts, gym, etc.;
2. The total land area of the development should be at least 4,000sq.m., or larger, and
3. It must be approved and accorded the title of "condominium" by the relevant authorities.
Freehold
Freehold means outright ownership of the property and land on which it stands. In freehold, the owner of the land has no
time limit to his period of ownership. For example, if you own the freehold, it means that you own the building and the land
it stands on outright, in perpetuity. It is your name in the land registry as “freeholder”, owning the “title absolute”. Freehold
is pretty much always the preferred option. You won’t have to pay annual ground rent. You are solely responsible for
maintaining the building.
Leasehold
Leasehold is the method of owning property (usually a flat) for a fixed term but not the land on which it stands. Possession
of the property will be subject to the payment of an annual ground rent. When the lease expires, ownership of the property
reverts back to the freeholder. Leaseholders will have to obtain permission for any major works done to the property.
Leaseholders may face other restrictions regarding subletting.
Rental Housing
Rental housing can be simply defined as a property owned by an individual other than the resident or by a legal entity, and
for which the resident pays a monthly rent to the owner. It is simply a formal or informal contract between the tenant and
the landlord to rent the dwelling for a certain period of time at a predetermined price.
6.1.3.4.2.1: Analysis:Distinguish:--Distinguish between different typologies of housing based on mode of delivery: Plotted,
Group Housing, Cooperative, Self Help, Leasehold, Freehold / Condominium, Rental Housing
6.1.3.4.3.1 Question:->
What are the different types of Housing Cooperatives?
6.1.3.4.3.2 Question:->
What are the advantages of Housing Cooperatives?
6.1.3.4.3.3 Question:->
What are the advantages of self-help housing?
6.1.3.5 Unit:Typology of Housing based on special purpose
Special Purpose Housing is both a philosophy and an approach for providing services within a housing environment. It
provides a residential setting where people with special need can not only avail a decent habitation but also can receive the
support they need.It can be classified into various types such as:

• Barrier free,
• Congregate housing for assisted living,
• Night shelters,
• Incremental Housing
Barrier free housing:
‘There is no human being who matches all the average proportions and abilities; a standardised person does not exist.
Every person deviates from the average to a greater or lesser extent.’
We may define Barrier free housing as that having no architectural barriers, that is no design or construction characteristics
that prevent ease of access and free movement for people with any kind of limited ambulatory functions. Accessibility
criteria can be a collection of minimum measurements and recommendations addressed to increase the range of use and
function for people with different abilities and physical conditions. In response to the differences in accessibility needs, the
concept of adaptibility has developed. Adapdibility means design features that allows dwelling unit to be inexpensively
transformed to meet the changing requirements of its residents throughout their lives or those of a disabled member, if so
required.
Congregate housing for assisted living:
Congregate Housing is a shared living environment designed to integrate the housing and services needs of elder person
who is frail, but not ill, and require a supportive environment in order to cope with the demands of daily living. The goal of
Congregate Housing is to increase self-sufficiency through the provision of supportive services in a residential setting.
Congregate Housing is neither a nursing home nor a medical care facility. It does not offer 24-hour care and supervision.
Services are made available to aid residents in managing activities of daily living in a supportive, but not custodial
environment. Each resident has a private bedroom, but shares one or more of the following: kitchen facilities, dining
facilities, and/or bathing facilities.
Night Shelter:
The provision of night shelters is envisaged to cater to the homeless, which are generally provided near the Railway
Terminals, Bus Terminals, Wholesale / Retail markets, Freight Complexes etc. as per requirements, and are identified
keeping in view major work centres. Special provisions are made for the homeless, women and children including the
disabled, orphans and old.
In order to make the provision of this facility financially sustainable for the local body, innovative concepts such as
integrated complex with commercial space on the ground floor and night shelter on the first floor should be explored.
Incremental housing:
Incremental housing is a step-by-step process. It goes by different names (starter house, phased-development house,
owner-driven house), but fundamentally, incremental housing is an integral urban development process, building housing
communities and citizens. It is not quick, immediate or complete, but choice remains with the owner. It starts with a starter
core shelter. The starter core may be a kitchen/bathroom unit or just a bare lot with utility connection potential. But
recommended is a multi-purpose room with basic kitchen/bath facilities. Owners control the expansion of their housing
based on their needs and resources.
Incremental housing is an affordable way to rapidly resettle many families at a minimum housing and services level by
linking the energy of families with the large-scale city planning. It provides secure title and maximum flexibility in housing
decisions. City expansion becomes predictable and effectively uses limited funds and administrative capacity. But it is more
than housing. It also builds citizens and communities develop social networks that can support services and small scale
commercial opportunities.
Successful, incremental settlements require support in four key areas:
• A simple process for expansion to speed development by adding to the housing stock quickly;
• Strengthening individual identity and sense of community;
• Promoting safe, good quality construction practices; and
• Encouraging provision and maintenance of basic services.

6.1.3.5.2.1: Comprehension:Indicate:--To indicate the need and characteristics of : • Barrier free, • Congregate housing
for assisted living, • Night shelters, • Incremental Housing
6.1.3.5.3.1 Question:->
What is special purpose housing? Discuss the need and characteristics of various special purpose housing.
6.1.3.6 Unit:PPP in housing delivery
As per the definition of government of India (GoI), Public Private Partnership means an arrangement between a government
/ statutory entity / government owned entity on one side and a private sector entity on the other, for the provision of public
assets and/or public services, through investments being made and/or management being undertaken by the private sector
entity, for a specified period of time, where there is well defined allocation of risk between the private sector and the public
entity and the private entity receives performance linked payments that conform (or are benchmarked) to specified and pre-
determined performance standards, measurable by the public entity or its representative.
Governments throughout the world are being forced to review how to fund the increasing demand and rising expectations
of their citizens. This is because if all services and facilities are solely financed by the government, it would impose
tremendous pressure on the government financial status. Mass housing delivery is one among them which require huge
investment.
However, realizing the fact that private home owners and rental housing sector have been and will continue to be the major
provider of the bulk housing in the country, the Indian Government recently adopted public-private partnerships in
reforming the housing sector in the new National Urban Housing & Habitat Policy, 2007. In the history of housing delivery in
India, the public sector have played dominant role but the fact that private sectors are the major providers of housing in
India although with financial gains motives cannot be denied.
Therefore, the government in the provision of housing should act as “an enabler, promoter and facilitator to individual and
cooperative housing efforts rather acting as a direct implementer. It is on this premise, integration of both private and
public resources as a policy frame work for encouraging private sector participation on the housing delivery is
recommended. The modalities for public-private partnership in housing delivery of a large scale involve two major actors
and other stakeholders which are being used by the major actors. The major actors are the public sector (Government at
any level) and the private sector (Real Estate Development Companies) while the other stakeholders could be financial
institutions, insurance companies, construction companies, suppliers of building materials etc.
6.1.3.6.2.1: Comprehension:Discuss:--Discuss the need of PPP in housing sector
6.1.3.6.3.1 Question:->
Discuss the need of PPP in housing sector.
6.1.4 Module Level Problems:
6.1.4.1 Question:->
Explain how housing can be related as a subsystem of larger system of habitation.
6.1.4.2 Question:->
Classify different aspects of housing on the basis of visual characteristics, method of delivery or any specific purpose.
6.1.4.3 Question:->
Discuss the role of housing in socio economic development and quality of life.
6.1.4.4 Question:->

Discuss the advantages and disadvantages of Row-Housing compared to High-rise apartments considering the aspects: 1)
Suitability for target group of residents, 2) Energy consumption in use.
6.1.4.5 Question:->
Indicate the need and characteristics of different types of special purpose housing.
6.1.4.6 Question:->
Deduce the indicators of housing domain responsible for Quality of life.
6.1.4.7 Question:->
Examine critically some of the housing delivery projects undertaken through PPP in India with an emphasis upon the
approach and financial strategy adopted therein.
6.1.4.8 Question:->
Analyse the relevance of PPP in housing delivery.
6.1.4.9 Question:->
Analyse the advantages, disadvantages and apprehensions associated with PPP in housing.
6.1.5 Module's Learning Strategy:
Study relevant portion of:
TSS for housing and residential development.
Report No. 488(58/1.2/1), ‘Housing Condition in India - Housing Stock and Constructions’ NSS [National Sample
Survey] 58th Round, (July 2002 – December 2002), Ministry of Statistics and Programme Implementation, Government
of India, March 2004
Urban Housing and Habitat Policy, 2007, India
Public-private partnership in housing and urban development: Chapter 3: United nations human settlement programme,
Nairobi 2011
Housing Matters: A Review of the Housing Market in York Region: 2012
6.2 Module:Housing: Changing Scenario and Policies in India
Continuing urbanisation leads to shortage in housing in urban areas all over the world. The phenomenon can be observed in
cities of most developed countries as well as developing countries. Urban housing is a global issue which has remains under-
invested social sector everywhere. In case of India, according to the estimates made by the Planning Commission, there
had been a shortage of 6.64 million dwelling units in 2001in the urban areas as compared to 2.8 million units in 1951.
This module elaborates up on the urban and rural housing scenario in India together with the issues involved. It further
elaborates up on the current national urban housing policy framed by the central government and the ongoing national rural
housing schemes which are aimed at addressing the overall housing shortage and other issues involved. It is intended to
provide a comprehension of the policy in terms of its overall aim, focus and outline of contents together with the change in
approach in comparison to earlier policies.
This module, also elaborates upon the changes in approach to urban housing projects focussing on post-independence trend
in India.
6.2.2.1 Evaluation:Assess:--Assess the current urban and rural housing scenarios in India and outline the post-
independence initiatives taken by government for improvement

6.2.2.2 Knowledge:Outline:--Outline the significant changes in approach in housing projects and outline the new and
emerging trends
6.2.2.3 Knowledge:Outline:--Outline the focus, aims and the identified ‘specific areas of action’ of the policy
6.2.3 Module Units:
6.2.3.1 Unit:Urban housing scenario in India
India's rate of urban growth is highest in the world in the last decade [2000 - 2010]. The magnitude of housing
requirements is linked to the pattern of growth, settlement status and overall shelter quality. Cities and towns which are
growing at faster rate need to develop and deliver a faster and greater supply of housing. In India, the rate of housing
supply in the bigger urban settlements has not kept pace with that of the need resulting from the high rate of population
growth. The growth of slums in India has been at least three times higher than the growth of urban population, leading to a
sizeable number of urban population living in slums. As per TCPO [Town and Country Planning Organisation, India ( the
technical wing of the department of Urban Development, Gov. of India)], estimate 2001, 21.7 percent urban population
lived in slums. These requirements are growing in the context of rapid pace of urbanization, increasing migration from rural
to urban centres in search of livelihood, gap between demand and supply of sites & services at affordable cost and inability
of most new and poorer urban settlers to access formal land markets in urban areas due to high costs and their own lower
incomes, leading to a non-sustainable situation.
The second area of concern for adequate housing is the up-gradation of existing houses including access to minimum
services. As per Planning Commission estimates, the total requirement of urban housing during the 10th Plan period (2002-
2007) worked out to 22.44 million dwelling units in urban areas consisting of urban housing backlog of 8.89 million dwelling
units at the beginning of 10th Plan (2002) and additions of new housing of 13.55 million dwelling units.
As per Census 2001, the period of 1991 to 2001 witnessed a net addition of 19.52 million dwelling units in the urban
housing stock, amounting to the average annual construction of 1.95 million houses. The share of ownership housing in
urban areas has increased from 63% in 1991 to 67% in 2001 (Census, 2001). It is important to note that households
having one room accommodation declined significantly in urban areas from 39.55 per cent to 35.1 per cent during the
period 1991 to 2001 (Census, 2001). This is a result of the upward shift of accommodation and accelerated the supply of
housing stock.
However, with the growth of population in urban settlements, the land is progressively becoming a scarce resource. Decadal
census data [1971, 1981, 1991 and 2001] reveal that number of persons per residential building is increasing leading to
overcrowding.
6.2.3.1.2.1: Evaluation:Assess:--Assess the current urban housing scenario in India
6.2.3.1.2.2: Knowledge:Identify:-- Identify the Current issues in urban housing in India
6.2.3.1.2.3: Knowledge:Outline:--To outline various initiatives taken by government for urban housing
6.2.3.1.3.1 Question:->
Point out the urban housing scenario in India with the help of some of the key findings of any recent survey conducted
by any government agency.
6.2.3.1.3.2 Question:->
Point out / outline some of the initiatives taken by government of India for improving urban housing.
6.2.3.2 Unit:Characteristics of current rural housing scenario in India
Magnitude of housing requirements is linked to pattern of growth, settlement status and overall shelter quality. Though a
greater percentage of population in India currently reside in rural areas, UN and Census of India population projections
indicate a greater urbanisation in India in near future. Beyond 2040 it is likely that urban population is going to be more.
Rural settlements are characterised by out-migration for want of economic opportunities and hence a fast rate of delivery of
housing is not required when compared to urban areas. However rural areas are characterised by vernacular housing
construction with a very high percentage of ‘kachha’ construction. Affordability is low together with poor availability of low
cost construction technologies that would result in ‘pucca’ construction. Keeping this aspect in focus, a scheme of ‘Rural
Building Centre’ was launched to improve access to such technologies.

Second area of concern for adequate housing is the up-gradation of existing houses including access to minimum services.
Access to minimum services in rural areas continues to be very poor in rural areas of India. Government of India has many
schemes/ programmes for the purpose, however not under one umbrella [eg. IAY- house, sanitation scheme, PMGSY- road/
access etc] and require convergence of efforts under these different schemes.
Census data indicate that there is a gradual decrease in %age of one-room houses in rural areas, whereas there are
increases in %age of 2-room, 3-room and 4 or more room houses. The share of ownership housing in rural areas has not
been a major issue as revealed in NSSO surveys.
Decadal census data [1971, 1981, 1991 and 2001] reveal that number of houses in rural areas per 100 persons is
increasing.
6.2.3.2.2.1: Evaluation:Assess:--Assess the current rural housing scenario in India
6.2.3.2.2.2: Knowledge:Identify:--Identify the current issues in rural housing in India
6.2.3.2.2.3: Knowledge:Outline:--Outline various initiatives taken by government for rural housing
6.2.3.2.3.1 Question:->
Point out the rural housing scenario in India with the help of some of the key findings of any recent survey
conducted by any government agency.
6.2.3.2.3.2 Question:->
Point out / outline some of the initiatives taken by government of India for improving rural housing sector.
6.2.3.3 Unit:Trends in urban housing projects
The decade of 1950s saw the Indian government as planner and it was an era of institute building and initiation of many
projects. However, this decade also saw failure to anticipate and appreciate the impact of migration from rural areas to
urban areas and at the same time acknowledge the role of informal housing that led to led to gross underestimation of real
housing supply.
The decade of 1960s saw continuance of the Indian government acting as planner. This decade saw the emergence of urban
plans, regional development plans, village housing and central housing board together with continuation and initiation of
new schemes. However, it also became apparent that ‘centralised plans’ prepared left out the urban poor, slum demolition /
eviction do not work and that western standards and approaches may be not be appropriate in Indian context.
The decade of 1970s saw the government beginning to act as a provider. HUDCO was set up. This era saw focus on housing
colonies instead of 'Blocks'. Need to reduce subsidies, increase affordability and improve cost recovery to reach more
beneficiaries was realised in a hindsight. Site and services schemes were found to be too slow a process.
The decade of 1980s saw a shift of the government’s role to that of an enabler. There was also a shift in the approach for
housing for the poor. UBSP, IAY schemes were launched. A National Housing Policy was drafted. Self-help concepts were
introduced. Role of NGOs and CBOs became important in providing housing and facilities to the poor.
The decade of 1990s saw the government acting as a regulator with increased involvement of the private sector. It also saw
emergence of stakeholder participation. National housing policy was adopted in 1994. The policy was revised and readopted
in 1998 with changed goal that laid focus on the ‘habitat’ as well together with ‘housing’.
The last decade of 2000s saw government emerging as a partner in PPP and joint venture projects besides being enabler as
well as a regulator. It also saw removal of legal, financial and administrative barriers for facilitating access to land, finance
and technology, forging strong partnership between private, public and cooperative sectors to enhance the capacity of the
construction industry. FDI became welcome in the real estate sector. Overall it was ensured that housing became a priority
sector. Currently the government is going launch scheme for achieving slum free cities in India in the next 5 years.
6.2.3.3.2.1: Knowledge:Outline:--Outline the significant changes in approach in housing projects in recent past
6.2.3.3.2.2: Knowledge:Outline:--Outline the new and emerging trends in housing projects
6.2.3.3.3.1 Question:->

Outline a decade-wise time-line of public-housing / social housing in India highlighting the significant changes
in approach in post-independence India together with a reference to the global scenario.
6.2.3.4 Unit:Contents and Focus of the current Housing Policy in India
In the last two decades, i.e., 1990s and 2000s India have had three different policy documents regarding housing adopted.
The National Housing Policy, 1994 sought to increase supply of land serviced by basic minimum services with a view to
promoting a healthy environment. The policy was changed and adopted as ‘The National Housing & Habitat Policy’ in 1998.
The new policy laid greater emphasis on the aspect of “Habitat” as a supplementary focus to housing. The emphasis on
“providing” housing continued in this Policy with emphasis on both quality and cost-effectiveness especially to vulnerable
sections of society.
A new policy was again adopted in 2007, called ‘The Urban Housing and Habitat Policy’. It focuses on sustainable
development and seeks to enhance the spotlight on ‘habitat’ with a ‘Regional Planning approach’ as well as further deepen
the role of Government as a ‘facilitator’ and ‘regulator.’ Moreover, the new Policy lays emphasis on earmarking of land for
the EWS/LIG groups in new housing projects. It lays emphasis on Government retaining its role in social housing so that
affordable housing is made available to EWS and LIG of the population as they lack affordability and are hopelessly out
priced in urban land markets.
6.2.3.4.2.1: Knowledge:Outline:--Outline the overall aim of the policy
6.2.3.4.2.2: Knowledge:Outline:--Outline the contents of the policy
6.2.3.4.2.3: Knowledge:Outline:--Outline the 'focus areas' of the policy
6.2.3.4.3.1 Question:->
Point out the overall aim of the current urban Housing Policy in India.
6.2.3.4.3.2 Question:->
List the major contents of the current urban Housing Policy in India.
6.2.3.4.3.3 Question:->
Briefly outline the focus of the ‘National Urban Housing and Habitat Policy, 2007’ of India.
6.2.3.5 Unit:Aims of the policy
The National Urban Housing & Habitat Policy, 2007 lists 11 different aspects for which it has detailed aims. These are for
example:
Urban Planning
Affordable Housing
Increase flow of Funds
Spatial Incentives
Increase Supply of Land
Special Provision for SC/ ST/ OBC/ Minorities/ Disabled
Special Provision for Women
Employment Generation
Public-Private Partnerships
Management Information System
Healthy Environment
There are all together 22 listed aims for these 11 aspects.
6.2.3.5.2.1: Knowledge:List:--List the aspects for which the policy has detailed aims

6.2.3.5.2.2: Analysis:Point out:--Point out the detailed aims of the 11 listed aspects of the Urban Housing and Habitat
policy (2007) of India
6.2.3.5.3.1 Question:->
Point out the detailed aims of the ‘National Urban Housing & Habitat Policy, 2007’ of India for the eleven listed
aspects.
6.2.3.6 Unit:â€˜Speciﬁc areas of Actionâ€™of the policy
Any listing of ‘specific areas’ in any such policy is related to the identified ‘focus areas’ of the policy and is strategic in nature
due to the perceived importance of the areas based on an assumed /envisaged overall impact of the actions in these areas.
In order to improve the urban housing and the state of our urban habitats, the ‘National Urban Housing and Habitat Policy,
2007’ of India lists certain ‘specific areas’, as if these are most strategic and for which it also lists the types of actions
required to be taken by the government or its agencies. The list includes eight different and specific areas. The actions
envisaged for these ‘specific areas’ include promotion of certain types of activities, formulation of specific legal stipulations,
as well as, direct interventions. Housing construction activities in India in the near future will be directly affected by all of
these.
6.2.3.6.2.1: Knowledge:List:--List the specific areas for which the policy has outlined actions
6.2.3.6.2.2: Analysis:Point out:--Point out the actions that the government deems fit to be taken for the listed specific
areas of ‘Land’ and ‘Technology support and its transfer’
6.2.3.6.3.1 Question:->
Enlist the specific areas for which the ‘National Urban Housing and Habitat Policy, 2007’ of India has outlined
actions to be taken by the government or its agencies.
6.2.3.6.3.2 Question:->
Point out the actions that the government deems fit to be taken as per the ‘National Urban Housing and Habitat
Policy, 2007’ of India, for the following listed specific areas:
a) Land
b) Technology support and its transfer
6.2.4.1 Question:->
Assess the current urban and rural housing scenarios in India and outline the post-independence initiatives
taken by government
6.2.4.2 Question:->
Mention the significant changes in approach in housing projects and outline the new and emerging trends
6.2.4.3 Question:->
Outline the focus, aims and the identified ‘specific areas of action’ of the policy
Unit 1

Study relevant portions of:
· Report No. 488(58/1.2/1), ‘Housing Condition in India - Housing Stock and Constructions’ NSS [National Sample Survey]
58th Round, (July 2002 – December 2002), Ministry of Statistics and Programme Implementation, Government of India,
March 2004
· Census of India Statistics on ‘House and Household Amenities’ [or any report /report chapter that highlight the key
findings]
· Chapter X of the 11th 5 Year Plan Document of India [2007 – 2012]
· Urban Housing and Habitat Policy, 2007, India
Unit 2
· Report No. 488(58/1.2/1), ‘Housing Condition in India - Housing Stock and Constructions’ NSS [National Sample Survey]
58th Round, (July 2002 – December 2002), Ministry of Statistics and Programme Implementation, Government of India,
March 2004
· Census of India Statistics on ‘House and Household Amenities’ [or any report /report chapter that highlight the key
findings]
· Chapter X of the 11th 5 Year Plan Document of India [2007 – 2012]
· Discussion Summary, Maharashtra, Goa, Daman & Diu State Consultation on ‘Draft National Rural Housing & Habitat
Policy’, 9th September 2006 [Basin- South Asia Regional Knowledge Platform]
Unit 3
Chapter 6: ‘A timeline of Social Housing Efforts – Globally’ in the book: Subrata Chattopadhyay (2009); ‘New Essays on
Inclusive Housing’; MacMillan India Ltd.; ISBN: 10: 0230-63666-7, 13: 978-0230-63666-8
Unit 4
National Urban Housing and Habitat Policy, 2007
Unit 5
Unit 6
6.3 Module:Housing Market
This module is intended to help students to develop a broad understanding of the way in which the contemporary housing
system in India operates; the key agencies and their powers and limitations; and the main financial and subsidy
mechanisms that impact on the housing system as a whole. It would help the students to explore the economics involved in
the housing market and ascertain the reasons for increasing gap between demand and supply of housing units. It will help
them to identify the constraints in housing delivery process. It will enable them to analyse the content of housing policy and
its intended outcomes along with monetary and fiscal policy which affect the housing sector. The students will be able to
discuss the factors that affect the housing market, identify the components of housing cost and the major constraints in real
estate development. They will also be able to state the means used by the government of India for mobilization of finance in
the housing sector. Further, the role of private real estate players in delivering housing stock will also be understood.
6.3.2.1 Knowledge:List:--List and discuss the factors that affect housing market
6.3.2.2 Comprehension:Discuss:--Discuss how the different cost components affect overall cost of housing
6.3.2.3 Comprehension:Discuss:--Discuss the means through which finance for housing development is mobilised
6.3.2.4 Comprehension:Discuss:--Discuss the role of housing finance organisations

6.3.2.5 Comprehension:Discuss:--Discuss how to make housing affordable.
6.3.2.6 Comprehension:Discuss:--Discuss new and up-coming approaches for mobilisation of finance
6.3.3 Module Units:
6.3.3.1 Unit:Factors aﬀecting Housing Market
Housing market is primarily a function of three factors:
1. Economic factors
2. Credit market related factors
3. Policy, regulatory, planning and development factors.
1. Economic Factors
The economic factors affecting housing market are demand for housing, supply conditions prevailing in the sector, income
level and corresponding expenditure pattern of families and finally the property prices.
(i) Housing demand
‘Housing demand’ is related to market with reference to purchasing power, affordability, willingness to raise funds and it
may be assessed based on the following major factors viz. (i) the economy of doing a house (temporal choices), (ii)
affordability, (iii) willingness to pay (including for construction, maintenance, resource mobilization), (iv) availability of and
accessibility to housing finance, and (v) availability of residential plots /dwelling units at affordable prices.
There is a strong potential demand for housing in India. As a result of India’s economic growth, the income levels in
the country are increasing and leading to fast pace of urbanisation. Consequently, the demand for housing is also
increasing. According to a research conducted by CRISIL in 2007, housing stocks in terms of number of units is expected to
grow at a ‘Compounded Annual Growth Rate’ (CAGR) of 3.37% over next five years and in terms of square feet is expected
to grow at a CAGR of 4.75%. Several factors contribute to this demand in the urban areas:
a) Growing population increases demand for housing
b) Increasing urbanisation accelerates housing demand
c) Increasing purchasing power and entrepreneurial Tier-II (other than well known megapolis)cities are new drivers
d) Increasing borrowing ability provides new dimension to the sector
(ii) Housing supply
The factors affecting the ‘supply of housing’ are:
a) Supply of land
b) Regulatory mechanism
c) Required administrative approvals
(iii) Income level and expenditure pattern
In every urban society, willingness to spend for housing increases with increase in household income. The shift of
expenditure towards housing itself pegs the demand for housing.
(iv) Prices
In addition to the land costs, construction costs, other levies and taxes all impact the price of housing.
2. Credit market related factors
Two of the main factors are:
(i) Availability of housing finance through formal sources
(ii) Eligibility norms for borrowing from these formal sources
3. Policy, regulatory, planning and development factors
Policies and regulations with regards to housing development and urban development as a whole can prove to be either
impediment or catalyst to housing sector development. Such as:
(i) Urban development and housing development Regulatory factors
(ii)Planning norms including FSI or FAR

(iii) Impact of the policies and regulations on availability of infrastructure
Constraints for investment in the Real Estate / Housing sector in India
The various constraints are as under:
High cost of conventional building materials and un-attainable Building Codes and Standards( Permissions for
construction and occupation)
Norms and rates of Stamp Duty & Registration
Bye-laws and Regulations: particularly Urban Land Ceiling Regulation Act (ULCRA) (being repealed in most states as a
part of reforms under JNNURM) and Rental Act
Lack of large scale involvement of NGO / CBOs [and micro-finance systems]
Clear Title of land
Inadequate access to housing finance for the common man
Lack of fiscal incentives
Lack of robust rural housing financing system.
6.3.3.1.2.1: Comprehension:Discuss:-- Discuss the factors that affect housing market
6.3.3.1.2.2: Evaluation:Assess:--Assess the constraints in real estate development
6.3.3.1.3.1 Question:->
Discuss the factors that affect housing market.
6.3.3.1.3.2 Question:->
Assess the constraints in real estate development.
6.3.3.2 Unit:Components in Housing Cost
The housing cost is governed by factors such as:
Cost of developed / undeveloped land
Cost of infrastructure within housing project site
Cost of construction including building services at building level, such as, land, materials, labour and administration
charges
Profits
Cost of developed / undeveloped Land:
Due to its scarce nature, ‘Cost of developed / undeveloped Land’ has considerable impact on housing cost. Land
Development costs include land preparations, networks outside the site, such as, water supply, sanitation, street lighting,
roads and other such off-site costs for residential schemes.
There are also regional differences in land development costs chiefly because of the availability of materials, cost of
materials and cost of labour. The factors such as existing land policy, locational factors, prevalent design norms, prevalent
construction costs, efficiency of implementation, and the level of service provided also have considerable impact on the cost
of land.
Cost of infrastructure within housing project site:
The Task Forces on Housing & Urban Development, Planning Commission, Government of India, 1983 had identified several
factors affecting land development costs. The percentage distribution of different components of land development is
tabulated below:

Dressing and leveling cost: 3%
Roads: 18%
Water Supply: 20%
Sewerage: 19%
Solid waste Drains: 18%
Arboriculture: 15%
External Electrification: 7%
Cost of construction including building services:
Cost of construction including building services at building level such as, materials, labour and administration charges vary
regionally and it accounts to substantial percentage in the housing cost.
Profits:
While considering the housing cost in case the provider is a private developer, the profit for the developer also needs to be
accounted for. In case of PPP (Public Private Partnerships), the minimum margin of profit is clearly worked out so as to
induce private sector to take up housing projects whereas the public sector usually comply with the social obligation to
provide affordable housing to the needful without profit.
Percentage variation of these afore-said costs affects housing differently in the developed and developing countries. A
comparative study of the housing cost in India and USA shows that while the percentage material cost in both countries is
more or less same but there is huge difference in land cost, labour cost and profits. The low percentage of labour cost in
USA can be attributed to the high level of mechanization, whereas in India it is labour intensive. However, it is more
important to note the differences in %ages of land cost and profits. Whereas land costs are affected by rate of supply of
developed land [primarily the onus of government agencies, though at present ‘joint ventures’ and PPPs are becoming
common), profit %ages are low because housing costs are already very high for average annual income of the people in
India.
6.3.3.2.2.1: Knowledge:Identify:--Identify the various components of housing cost
6.3.3.2.2.2: Comprehension:Discuss:--Discuss how the different components affect housing cost
6.3.3.2.3.1 Question:->
Identify the various components of housing cost
6.3.3.2.3.2 Question:->
Discuss how the different components affect housing cost.
6.3.3.3 Unit:: Mobilisation of Finance for Housing
Macroeconomic stability or instability and the housing sector are inextricably linked. In India, the mortgage to GDP ratio was
estimated at 3% in 2001, whereas in USA it was 54%. The penetration level of mortgages is miniscule when compared with
the shortage of housing units. Governments appear to have recognised that monopolistic state owned providers of housing
finance are not be the most efficient or cost effective mechanism to develop and deepen the mortgage market. Merits of
private sector dedicated housing finance institutions have been recognised and encouraged.
The housing finance sector in India has undergone unprecedented changes over the past five years. The importance of the
housing sector in India can be judged by the estimate that for every Indian rupee (INR) invested in the construction of
houses, INR 0.78 is added to the gross domestic product of the country and the real estate sector is subservient to the
development of 269 other industries. The real estate sector is also the second largest employment generator in the country.
The fiscal concessions provided to individuals under Section 88 of the IT Act (now Section 80 C wherein the deductible
amount is up to Rs. 100,000 as compared to Rs. 20,000 earlier u/ s 88 of the IT Act) in 1995 and Section 24 (B) in 1999
(deductible amount of interest repayment is up to Rs. 1.50 lakh), have led to an increase in demand for housing loans

resulting in increased disbursements of housing finance by primary lenders over the years. As a result, housing stock in the
country increased from 148 million units in 1991 to 187 million units in 2001 and is expected to have further gone up to 218
million units in 2007.
In India, formal housing finance came with the setting up of HUDCO in 1971. HUDCO sought mainly to cater to low-income
groups, but at the same time provided technical and financial assistance to State Housing Boards, urban development
institutions and the co-operative sector. Though, however it acted as a ‘wholesaler’ initially, as it primarily gave loans to
public agencies supported by state governments.
Around the mid- and late 1980s a few housing finance companies were set up either as private limited companies (e.g.,
Dewan Housing Finance Limited) or as joint ventures with State governments (e.g., Gujarat Rural Housing Finance
Corporation) or bank sponsored housing finance companies (e.g., Can Fin Homes, SBI Home Finance, PNB Housing
Finance). At that time, even State-owned insurance companies like the Life Insurance Corporation and the General
Insurance Corporation of India set up their own housing finance arms.
With the recommendation of National Commission on Urbanisation, the National Housing Bank (NHB) was established under
an act of Parliament (NHB Act 1987). The National Housing Bank is the principal agency for the promotion and support
(including financial) of housing finance institutions. NHB can also grant loans and advances or provide financial assistance to
registered banks and housing finance institutions, or to any such authority established by or under any central, State or
provincial act and engaged in slum improvement. NHB can also devise schemes for the mobilisation of resources and
extension of credit for housing.
The facilitating role of the government and other financial institutions along with private intervention in facilitating finance to
address the housing needs of the society is an indication of the significance of the sector in overall development of the
economy. The National Agenda for Governance, which envisages the construction of 2 million dwelling units every year, also
emphasizes that housing activity would be an engine for substantial generation of employment in the country. To this end,
efforts are being made to identify the legal and administrative impediments and addressing them suitably. The earlier
dependence on the public agencies is now slowly giving way to create a strong Public - Private partnership for tackling the
housing and habitat issues. The Government's intervention will be limited through fiscal concessions, legal and regulatory
reforms and creating an enabling environment while the private sector as the other partner would be encouraged to take up
land assembly, housing construction and invest in infrastructure services.
6.3.3.3.2.1: Knowledge:Outline:--Outline the role of real estate market in the macro-economy in Indian context
6.3.3.3.2.2: Knowledge:Identify:--Identify and discuss about the financial institutions set up in India through which the
Indian government attempts to mobilise finance for housing
6.3.3.3.3.1 Question:->
Outline the role of real estate market in the macro-economy in Indian context.
6.3.3.3.3.2 Question:->
Identify and discuss about Institutional Framework for Housing Finance in India.
6.3.3.4 Unit:Sources of Housing Finance
Housing sector in India has seen rapid growth on account of various factors such as increased urbanisation, favourable
demographics, rising disposable incomes for a large section of the population, government tax incentives, larger supplies of
better quality constructions, lower interest rates and relatively stable property prices.
Categories of Formal Housing Finance
Banks could deploy their funds under the housing finance allocation in any of the three categories, i.e.
(i) Direct finance,
(ii) Indirect finance,
(iii) Investment in bonds of NHB/HUDCO, or combination thereof.
Direct Housing Finance refers to the finance provided to individuals or groups of individuals including co-operative
societies.
Indirect housing finance is channelled by way of term loans to housing finance institutions, housing boards, other public
housing agencies, etc., primarily for augmenting the supply of serviced land and constructed units.
A comparison of bank lending to housing finance for the year 2002, 2003 and 2004 (INR billion) is tabulated below:

2002 2003 2004
Direct Housing Finance Disbursements 85.66 235.53 328.16
Indirect Housing Finance Disbursements 57.01 67.96 98.45
Investments in NHB/HUDCO Bonds 4.78 34.91 27.17
Source: NHB Trend and Progress Report, 2004
The need for long term finance for housing in the country is met by the following types of institutions:
Scheduled Commercial Banks [SCB]
Scheduled Cooperative Banks (Scheduled State Co-operative Banks, Scheduled District Cooperative Banks and
Scheduled Urban Cooperative Banks)
Regional Rural Banks,
Agriculture and Rural Development Banks
Housing Finance Companies, and
State Level Apex Co-operative Housing Finance Societies.
The housing demands of various economic and demographic sections of the population are met by these institutions by way
of their housing loan schemes. The SCBs have the largest network of branches and are also the largest mobilising
institutions of savings in the country, significant part of which are, in turn, goes into the housing sector.
The following types of home loans are generally available in the market:
Home Equity Loans
Home Extension Loans
Home Improvement Loans
Home Purchase Loans
Land Purchase Loans
The National Co-operative Housing Federation (NCHF) was established as an apex organization for coordinating, guiding and
promoting cooperative housing activities in the country. The cooperative housing structure consists of primary housing
cooperatives at the grass root level and Apex Cooperative Housing Finance [ACHFS] at the state level.
Role of Housing Finance Companies [HFC]
The HFCs are expected to:
Redefine their role and move away from their traditional approach to housing finance;
Develop and expand their reach to meet the needs of people;
Devise schemes to lend at affordable rates to those who are in dire need of housing finance support;
Mobilise resources from provident funds, insurance funds, mutual funds, etc., for house building activities; and
Develop innovative instruments to mobilise domestic savings.
Performance of Housing Finance Companies
In 2006, a total of 44 housing finance companies were registered with India’s National Housing Bank, of which only 22 were
authorised to take deposits from the public (NHB, 2006). The housing finance disbursements for various institutions for
years 2001, 2002, 2003, 2004 and 2005 (INR billion) is tabulated below:
Institution Category 2000 2001 2002 2003 2004 2005
Housing Finance Companies 98.12 126.39 146.14 178.32 208.62 260.00
Banks 35.97 55.53 85.66 235.55 328.16 457.00
Others 7.01 8.68 6.78 6.42 6.23 -
Total 141.10 190.60 238.58 420.29 543.01 717.00
Source: NHB 2003, 2004, 2005

6.3.3.4.2.1: Knowledge:List:--List the different sources of housing finance
6.3.3.4.2.2: Comprehension:Discuss:--Discuss the role of housing finance organisations
6.3.3.4.3.1 Question:->
Mention the different sources of housing finance.
6.3.3.4.3.2 Question:->
Mention the institutions from where the need for long term finance for housing in the country is being met.
6.3.3.4.3.3 Question:->
What are the different types of home loans are generally available in the market?
6.3.3.4.3.4 Question:->
Discuss the role of housing finance organisations.
6.3.3.5 Unit:Approach for provision of aﬀordable housing/ adequate shelter
The United Nations Human Settlements Programme, UN-HABITAT is the United Nations agency responsible for coordinating
efforts by the international community to promote affordable housing. Established in 1977 with headquarters in Nairobi,
Kenya, UN-HABITAT maintains operations in 87 countries through regional offices (Japan, Brazil, and Kenya) and Habitat
Program Officers in 45 UNDP country offices. UN-HABITAT is the United Nations agency for Human Settlements. It is
mandated by the United Nations General Assembly to promote socially and environmentally sustainable towns and cities
with the goal of providing adequate shelter for all.
Within its focus area the Housing Policy Section of UN-HABITAT concentrates its normative, advocacy and advisory activities
related to:
• Formulation and Implementation of Effective Housing Policies;
• Enabling Shelter Strategies;
• Slum Prevention Policies
• Upgrading, Maintenance and Management of the Existing Housing Stock;
• Housing Delivery Systems and particularly Financing Affordable Housing Provision;
• Slum Upgrading and Informal Housing Supply Systems;
• Rental Housing;
• Cooperative Housing;
• Housing for Vulnerable Groups.
• Evictions and Right to Adequate Housing
• Sustainable Housing, Sustainable Buildings and Clean Construction Technology
The Government of India and State Governments have been promoting research in the fields housing and construction
activities. This has led to a number of new alternative building materials and techniques aimed at reducing the cost of house
construction and improving the performance of conventional building materials and techniques. Energy-efficient
manufacturing processes and use of renewable raw material resources of wastes and byproducts of industry, agriculture and
forestry, etc., have resulted in Cost-Effective and Eco-Friendly (CEEF) products.
Central Building Research Institute (CBRI), Roorkee, has been established with following objectives:

Study, location-specific R&D, demonstration, training and feedback related to utilization of innovation, cost-effective
technologies in rural housing, keeping in view local resources of materials and manpower, local climate, socio cultural
traditions and proneness to natural calamities of seven villages in all, one each in seven identified zones of India.
Planning and execution of a time bound Action Programme to demonstrate realization of certain national objectives by
providing S&T inputs in the design and construction of cost-effective minimal and optimal houses and improving the
quality of existing shelters, by utilizing local materials and skills, simultaneously creating employment opportunities
through skill development and use of local materials and wastes as value-added building materials.
Building Materials and Technology Promotion Council (BMTPC)
The Building Materials and Technology Promotion Council (BMTPC), is being funded to implement a project of popularizing
Cost-Effective Building Materials and Construction Technologies.
6.3.3.5.2.1: Comprehension:Discuss:-- Discuss the role of UN-HABITAT for provision of affordable housing/ adequate
shelter
6.3.3.5.2.2: Comprehension:Discuss:--Discuss efforts for developing cost effective construction technologies for affordable
housing in India
6.3.3.5.2.3: Comprehension:Discuss:--Discuss methods for making housing affordable
6.3.3.5.3.1 Question:->
Discuss the role of UN-HABITAT for provision of affordable housing/ adequate shelter.
6.3.3.5.3.2 Question:->
Discuss efforts for developing cost effective construction technologies for affordable housing in India.
6.3.3.5.3.3 Question:->
Discuss methods for making housing affordable.
6.3.3.6 Unit:New and Up-coming approaches for mobilisation of Finance for housing
The affordable housing context is immensely challenging. The search for new financing models to deliver additional low cost
renting and owning therefore require immediate attention.
Some of the innovative ways adopted across the globe for financing low cost housing amongst all tenures are as follow:
• Austria's housing construction convertible bonds – a protected housing finance circuit with tax-incentivised bonds
specifically for affordable housing;
• China’s inter-governmental financial system which encourages local government to use land sales to the private sector.
While this may include incentives to support high-end housing, there are examples where the sale of the use rights of public
land as a way of raising finance for affordable housing;
• France's Livret A savings scheme – initially, a specialist provider of social housing finance (Credit Foncier) transformed
short-term individual deposits into cheap long-term loans for social housing. Livret A savings schemes are now provided
across the French banking system and have been particularly popular as they offer the general public tax-free savings and
security in the context of the financial insecurity of the GFC;
• Hong Kong’s self-finance public housing (though it has historically enjoyed free public land and important sales revenues
to help subsidise household housing costs);
• Singapore’s compulsory employees’ social security housing savings fund, in place since 1955;
• Switzerland’s guaranteed co-operative housing bond. Apart from the ability to buy discounted land, the Swiss social
sector relies on revolving funds, bond arrangements and a federal mortgage guarantee to cooperatives.
The financing pattern in India, RBI has stipulated the following types of bank finance under the direct housing finance.

Bank finance extended to a person who already owns a house in town / village, where he resides, for buying /
constructing a second house in the same or other town / village for the purpose of self-occupation.
Bank finance extended for purchase of a house by a borrower, who proposes to let it out on rental basis on account of
his posting outside the head quarters or because he has been provided accommodation by his employer.
Bank finance extended to a person, who proposes to buy an old house, where he was previously residing as tenant.
Bank finance granted only for purchase of plot, provided a declaration is obtained from the borrower that he intends to
construct a house on the said plot, with the help of bank finance or otherwise, within a period of two years from the
availment of the said finance.
Bank finance granted for carrying out alterations / additions / repairs to the house / flat existing or already financed by
the bank
6.3.3.6.2.1: Comprehension:Discuss:--Discuss some approaches for mobilisation of Finance for housing in other countries
6.3.3.6.2.2: Comprehension:Discuss:--Discuss new and up-coming approaches for mobilisation of Finance for housing in
India
6.3.3.6.3.1 Question:->
Discuss some approaches for mobilisation of Finance for housing in other countries.
6.3.3.6.3.2 Question:->
Discuss new and up-coming approaches for mobilisation of Finance for housing in India.
6.3.4.1 Question:->
List and discuss the factors that affect housing market and components that affect overall cost of housing.
6.3.4.2 Question:->
Discuss about various institutions through which finance for housing development is mobilised.
6.3.4.3 Question:->
What is the role of housing finance organisations in housing development?
6.3.4.4 Question:->
Discuss new and up-coming approaches for mobilisation of finance.
1. International Research Journal of Finance and Economics
ISSN 1450-2887 Issue 24 (2009), Euro Journals Publishing, Inc. 2009, http://www.eurojournals.com/finance.htm
2. Prospects & Problems of Real Estate in India: Vandana Singh, [Head, MBA Department, Seth Jai Prakash Mukand Lal
Institute of Engineering & Technology (JMIT), Radaur, Yamunanagar), Komal (Lecturer, Institute of Technology &
Management (ITM), Gurgaon)
3. Reserve Bank of India Occasional Papers
Vol. 27, No. 1 and 2, Summer and Monsoon 2006

Identifying Asset Price Bubbles in the Housing Market in India – Preliminary Evidence by Himanshu Joshi
4. Reading Material on Housing, K. T. Poulose, ITPI, New Delhi
5. Chapter 9: ‘Housing Shortage and Affordability’ in the book: Subrata Chattopadhyay (2009); ‘New Essays on Inclusive
Housing’; MacMillan India Ltd.; ISBN: 10: 0230-63666-7, 13: 978-0230-63666-8
6. Housing Finance : A Study of Experiences of Commercial Banks by Dr. N. K. Thingalaya Dr. M. S. Moodithaya Dr. N. S.
Shetty For Indian Institute of Banking and Finance, Mumbai
7. Affordable Housing for Urban Poor: Prepared by National Resource Centre SPA, New Delhi. Supported by Ministry of
Housing & Urban Poverty Alleviation Government of India
8. Richard Kintermann and Robert small site planning for cluster Housing van nastrand reinhold company, Jondon/New York
1977.
9. Joseph de Chiara and others – Time saver standards for Housing and Residential development, Mcgraw Hill Co, New York
1995.
10. Forbes Davidson and Geoff Payne, Urban projects Manual. Liverpool University press, Liverpool 1983.
11. Christopher Alexander, A pattern Language, Oxford University press, New York 1977
12. HUDCO publications – Housing for low income, sector model.
6.4 Module:Housing Need
When population of a settlement grows, as shelter is considered to be a basic human right, need for new housing arises to
house the additional population. Such need also arises when existing housing needs to be replaced. In countries, where rate
of population growth and urbanisation is high, to meet the need becomes a huge task. The issue of meeting the housing
need becomes even more complex in developing countries due to inadequacy of resources.
In India, as rate of growth of urban population is very high at present, the current rate of supply of housing does not meet
that of the need. This has become a great concern for the government and all concerned citizens.
Housing need gets translated into housing demand depending upon affordability of the populace. Whereas planners are
more concerned with the ways of meeting the ‘housing need’, architects concentrate on ‘housing demand’ as it translates
into feasible ‘housing projects. Indian builders are slowly warming up to this colossal housing shortage in Affordable housing
sector and eyeing the business opportunities as housing providers.
This module elaborates about the aforesaid aspect of housing and focuses on three aspects: a] assessing the housing
scenario of a settlement or its parts in terms of housing shortage, and need, b] assessing potential of different pockets of
land to meet the housing need /demand and c] assessing provisions and applicability of government housing programmes to
meet the need of different sections of the society.
6.4.2.1 Evaluation:Assess:--Assess Housing Stock in different economic categories in a locality
6.4.2.2 Comprehension:Classify:--Classify factors that influence ‘housing need and demand’
6.4.2.3 Analysis:Analyze:--Analyze ‘housing shortage’ of a settlement or its parts
6.4.2.4 Evaluation:Assess:--Assess future ‘housing need’ of a settlement or its parts considering future growth factors.
6.4.2.5 Evaluation:Assess:--Assess comparative potential of different sites for housing development
6.4.2.6 Evaluation:Assess:--Assess provisions and applicability of government housing programmes for different sections
of the society
6.4.3 Module Units:
6.4.3.1 Unit:Deﬁnitions: House, Household, Household-Size, Housing Stock
Census House: [Census of India]
A 'census house' is a building or part of a building used or recognised as a separate unit because of having a separate
main entrance from the road or common courtyard or staircase, etc.
It may be occupied or vacant.
It may be used for a residential or non-residential purpose or both.

If a building has a number of flats or blocks which are independent of one another having separate entrances of their
own from the road or a common staircase of a common courtyard leading to a main gate, these will be considered as
separate census houses.
Household: [Census of India]
A 'household' is usually a group of persons who normally live together and take their meals from a common kitchen
unless the exigencies of work prevent any of them from doing so.
Persons in a household may be related or unrelated or a mix of both.
However, Institutional Household:
A group of unrelated persons who live in an institution and take their meals from a common kitchen is called an
Institutional Household.
Examples of Institutional Household are boarding houses, messes, hostels, hotels, rescue homes, jails, ashrams,
orphanages, etc.
Household Size.
The number of person constituting one household is termed as household size. In India 5 persons are considered an average
family and living in a household (Indian Census).
Household Stock
6.4.3.1.2.1: Knowledge:Define:--Define ‘residential house’ and ‘household’
6.4.3.1.2.2: Evaluation:Assess:-- Assess average household-size in a locality
6.4.3.1.3.1 Question:->
Define ‘residential house’ and ‘household’
6.4.3.1.3.2 Question:->
Assess average household-size in a locality
6.4.3.2 Unit:Housing Need & Demand
Housing need
Housing need refers to the need of shelter for every individual / household irrespective of their capability to afford. Housing
need is assessed by the government in order to find out, where help in the form of intervention is required. Housing need is
expressed in numbers but subcategories may be made based on agreed policy on requirements of adequacy for different
income categories.
Housing Demand
Housing Demand is market phenomenon dependent up on the income levels of the people. Housing Demand for different
categories / types of housing is assessed by market players for the use of developers so that the built dwelling units can be
marketed. Housing Demand is also expressed in numbers but subcategories are made based on trends for requirements of
different income categories
6.4.3.2.2.1: Knowledge:Define:--Define and differentiate between ‘housing need’ and ‘housing demand’
6.4.3.2.2.2: Comprehension:Classify:-- Classify factors that influence ‘housing need’
6.4.3.2.2.3: Comprehension:Classify:-- Classify factors that influence ‘housing demand’
6.4.3.2.3.1 Question:->

Define and differentiate between ‘housing need’ and ‘housing demand’
6.4.3.2.3.2 Question:->
Classify factors that influence ‘housing need’
6.4.3.2.3.3 Question:->
Classify factors that influence ‘housing demand’
6.4.3.3 Unit:Components of Housing Shortage
Assessment of housing shortage is for the purpose of assessing housing need. Without making sub-categories of housing
need, if one intends to make such an assessment, the following steps may be followed [according to Institute of town
Planners, India]:
Step1- Find out the total number of households in the given area / settlement [may be from census record or from survey]-
---- [a]
Step 2 – Find out the total number of occupied number of residential census houses [may be from census record or from
survey]----[b]
Step 3 – subtract [b] from [a]. the result is overcrowding may be termed as ---[c]
Step 4 – find out the total number of household /families without any shelter [e.g. footpath dwellers etc] --- [d]
Step 5 – Add [c] + [d] – this gives the quantitative housing shortage
In addition, to above [not indicated by ITPI as accepted practice], other factors also may be considered, e.g. household size.
A large household size may also indicate joint families, some of who want separate accommodation but are unable to do so.
To assess this scenario, few comparative settlements may be chosen to find out the average size of household. The
population of the given settlement then may be divided with the newly determined household size to find out possible
number of households [if some of the joint families were to become nuclear families]. The number of households thus
found, then, may be used in step 1 as indicated earlier in place of census records.
6.4.3.3.2.1: Knowledge:Define:--Define ‘housing shortage’
6.4.3.3.2.2: Comprehension:Classify:--Classify components / parameters of ‘housing shortage’
6.4.3.3.2.3: Analysis:Analyze:--Analyze ‘housing shortage’ of a settlement
6.4.3.3.3.1 Question:->
How will you assess quantitative and qualitative housing shortage for an urban settlement?
6.4.3.3.3.2 Question:->
Define ‘housing shortage’
6.4.3.3.3.3 Question:->
Classify components / parameters of ‘housing shortage’
6.4.3.4 Unit:Future projections for housing need assessment of a se lement
By definition, projections can only provide a baseline of what would happen if past trends are carried forward, given changes
in population and the make-up of that population. They do, however, provide an absolutely necessary input into planning

decisions on services, local government finance and land requirements for future housing investment.
As there is no universal set of measures to determine either need or demand, estimates of how many houses and of what
type are required are likely to vary. For example, a determination of ‘need’, for the provision of social housing, will be
affected by certain policy as well as the measures undertaken.
Assessments of housing need and demand are integrated into national and local planning policy and, in turn, have an impact
on the supply and demand for housing.
The factors which need consideration for future projection for housing need assessment include:
A. Population growth and household formation
Changes in household formation rates
Trends in household size and regional variation
Economic, social and demographic factors in household formation
Immigration
B. Demand caused by the backlog of existing need
The level of housing need backlog
Variation in demand across different housing types and tenures
C. Affordability of housing
According to various income groups/community.
6.4.3.4.2.1: Analysis:Categorize:--Categorize and explain reasons for growth of ‘housing need’
6.4.3.4.3.1 Question:->
Categorize and explain reasons for growth of ‘housing need’
6.4.3.5 Unit:Assessment of potential of diﬀerent pockets of land for housing development
In order to gauge the potential of prospective sites for housing development, it will be required to
Assess land availability by identifying buildings or areas of land that have development potential for housing;
Assess the potential level of housing that can be provided on identified land;
Identify constraints that might make a particular site unavailable and/or unviable for development;
Assess which sites are likely to be deliverable and which are likely to be developable.
In order to achieve the objective following information regarding the site will be required:
Site size in hectares;
The current site use(s);
The surrounding land use(s);
The character of the surrounding area;
Physical characteristics e.g. access and significant features;
The various parameters on which the given pockets of land being feasible for housing development can be:
Suitability – the site offers a suitable location for development now and would contribute to the creation of sustainable
communities;
Availability – the site is available now and free of ownership constraints;
Achievability – there is a reasonable prospect that housing will be delivered on the site, and in particular that development
of the site will be viable.

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