Land supply, urban planning reforms critical for affordable housing, says NITI Aayog's Rajiv Gauba
New Delhi, August 11
Land supply and urban planning reforms will be critical to expanding affordable housing in Indian cities, with states and municipal authorities needing to unlock land and ease development norms to reduce costs, NITI Aayog Member Rajiv Gauba said.
Addressing the National Conference on "Reimagining Affordable Housing - From Scheme to Sustainable Ecosystem" in Delhi, Gauba said the shortage of affordable housing would increase as population growth and rapid urbanisation add millions of people to cities and towns.
"Land availability lies at the heart of the problem," Gauba said, adding that land accounts for a high share of total housing project costs in some cases, making affordable housing projects less viable.
He said the report on affordable housing prepared by NITI Aayog and the Ministry of Housing and Urban Affairs proposes a set of measures to address the constraints, with most of the implementation lying with state and municipal authorities.
The recommendations include expanding planned urban areas and reserving at least 10 per cent of residential land as affordable housing zones in master plans. The report also proposes raising the permissible Floor Area Ratio (FAR) for such projects to the range of 5 or 6, promoting transit-oriented development, land pooling and transferable development rights, easing parking and density norms and creating land banks.
Gauba also suggested considering waiving land-use change fees for land dedicated to affordable housing and exempting affordable housing units from stamp duty to improve project viability and affordability.
He said government entities, including state public sector undertakings, also hold excess and unutilised land that could be unlocked and recycled into affordable housing projects.
"Land, as I said earlier, is the most binding constraint in the housing sector and therefore it has to be at the centre of the reform agenda," Gauba said.
He also highlighted the need to strengthen the rental housing ecosystem, noting that ownership is not the only housing solution for migrant workers, industrial labour, students and young professionals.
Gauba said access to capital was another major constraint and called for alternative underwriting approaches for households whose incomes are not adequately captured formally, along with new financial products for the affordable housing ecosystem.
He also pointed to nearly 1 crore vacant houses in urban India, saying weak tenancy frameworks, low rental yields and litigation risks were among the reasons these units remain outside the market.
Gauba urged the Ministry of Housing and Urban Affairs to use its funding leverage under various missions to push states to implement the reform agenda and said the conference should result in an agreed and time-bound plan of action.
— ANI
Reader Comments
The point about 1 crore vacant houses is so true! I see so many empty flats in my city while people struggle to find affordable rentals. The government needs a strong rental law that protects both landlords and tenants. Right now, landlords are scared to rent out because of legal hassles and fear of defaulters, so they leave properties vacant. A proper rental ecosystem would solve so many problems.
Great analysis from Mr. Gauba, but let's be realistic. State governments are always reluctant to give up control over land because it's a major source of revenue through stamp duty and registration fees. Asking them to waive land-use change fees and exempt affordable housing from stamp duty is like asking a shopkeeper to give away his best-selling items for free. The Centre needs to incentivize states properly, not just suggest reforms. 🤔
Transit-oriented development is the way forward! If we build affordable housing near metro stations, people save so much on transportation costs too. But please, the authorities need to think about density norms and open spaces. I don't want our cities to become concrete jungles with no parks or breathing space. Quality of life matters just as much as affordability. It's a fine balance we need to strike.
Interesting to read about India's approach to affordable housing. I work in urban planning back in the US, and we face similar issues with land costs and zoning laws. The idea of land pooling and TDR has worked well in some American cities, so I'm glad to see NITI Aayog recommending it. Hope the implementation goes smoothly!
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