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Is redevelopment answer to affordable housing?

Posted on by Track2Realty
Track2Realty Survey

Track2Realty Survey: Majority of the Indians feel redevelopment must be encouraged by policies across the cities to create more housing stocks. 

Slum and Luxury, slum redevelopment in Mumbai, Luxury apartments on slum land, Changing face of slums, Housing for slum dwellers, India real estate news, Indian property market news, Track2Media Research, Track2RealtyMore than one-third, 35 per cent Indians recommend mandatory redevelopment of buildings which fail to pass the norms of modern urban standards.

45 per cent think the developers should be offered tax exemptions to make the affordable housing attractive business proposition for them. 20 per cent of the respondents demand that the government must come out with some comprehensive idea to create the housing surplus instead of expecting the developers to do its job.

The Indians seem to be quite aware of the challenges of mass housing, as is visible with nearly half of the respondent, 48 per cent questioning when land acquisition is going to be tougher how housing for all will be a reality.  

30 per cent even suggest the affordable housing to be declared a national cause to make it an attractive proposition from the standpoint of land acquisition. 22 per cent feel master planning of respective cities should be relooked at to have more EWS (Economically Weaker Sections) and LIG (Low Income Group) houses.

These are the findings of Track2Realty survey that tried to capture the psyche of the home buyers on two different levels. The study tried to capture their perception of what is taking the housing prices unrealistically high even in the wake of the slow transactions in recent times.

Track2Realty conducted this survey in ten cities-Delhi, Mumbai, Kolkata, Bangalore, Chennai, Pune, Lucknow, Patna, Indore and Coimbatore. It was an attempt to capture the mood of the home buyers vis-à-vis the vision statement and policy rollout of the government.

Survey Highlights 

48% Indians understand that tough land acquisition is biggest challenges in creating mass housing 

72% nevertheless question seriousness of government for sitting over prime lands 

88% feel role of government is not of facilitator 

64% Indians feel feasibility of EWS & LIG housing is not in sync with credit worthiness  

52% complain CSR in slums for mass housing is only for taxation and brand makeover 

48% Indians maintain no serious foreign investor would be willing to invest in slum redevelopment  

The Indians across these cities assert that the government needs to do more than just give lip service to create housing for all. More than seven out of ten, 72 per cent blame that when the government itself is sitting over the large chunk of lands it can only realise the dream of every citizen’s housing by releasing it. 22 per cent maintain that the government must get financial modelling of mass housing and 6 per cent are not sure what could be the best solution.

Nearly everyone, 88 per cent of the respondents agree that the role of the government has not been that of a facilitator in creating the affordable housing stock in the country. Rest of the Indians, 12 per cent blame it to market forces and maintain that the government alone should not be blamed.

A large number of Indians even question whether the government has any financial modelling of EWS & LIG housing. 64 per cent ask whether the scheme is for those who do not have credit worthiness. 36 per cent question what if the buyer at the bottom of the pyramid fails to pay EMIs.

The survey tried to find an answer as to whether the slum rehabilitation falling under the CSR activities can add to the housing stocks. A majority of the Indians, 52 per cent do not think so and maintain that it can only help the developer in terms of taxation and brand makeover.  

28 per cent think a blanket categorisation of slum redevelopment (even with luxury projects on the land) should not be allowed to be called CSR. Rest 20 per cent are either not sure about it or feel at least this is a step in the right direction.

Will allowing of FDI into slum redevelopment be a game changer to create the housing stocks? Nearly half of the Indians, 48 per cent think given India’s track record of litigations on the slum ownership and related political interventions no serious foreign investor would be willing to take the risk.

Close to that number of people, 44 per cent though feel if ROI is made attractive then FDI flow may change the dynamics of mass housing on slum lands. Rest 8 per cent are not sure about it.

45% Indians feel tax concessions Can redevelopment be answer—45% Tax concessions for encouraging affordable housing, 35% Mandatory redevelopment of buildings failing urban standards, 20% Comprehensive solution needed

 

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