in a developing nation like India, the rate of urbanization increases every year, adding to the already existing housing deficit. Today nearly 28% of Indian population lives in urban areas, which is expected to get doubled in the coming decade.
With the ever increasing land value and construction cost the definition of affordable housing in India has changed. There is a wide gap between what is available in the market and what in reality people can afford, widening the demand and supply gap even further.
The government on its own can’t find and fulfill the humungous housing demand and it needs the involvement of the private sector to build the existing gap. Government should give subsidize and incentivize the private sector companies for them to start looking at it as a business opportunity.
The question here is – should there be separate clusters for economically weaker section of the society or should they be mixed with other groups? There are studies which show that such areas are usually ignored and have a lower rate of development leading to poor living conditions.
Rental housing is also a proven solution for mass housing. Rather than the whole burden of funds going to the government, affordable rental housing is a well-practiced phenomenon worldwide. From the rental income the area can be maintained along with funding for future housings. Private rental sector can also be developed with partial government funding or subsidies.