Affordable Housing Case Study

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The government became an increasingly cognizant role in addressing the private sector of housing needs with low – income customers. Government tend to introduce demand – side interventions for receivers, which included a reduction in taxes and interest rate subsidy, registration.
Traditionally affordable housing has been in the states purview: recently the private sector entered into building houses for the middle class and lower – middle segments 5. Many of the factors have led to this development.
There are many instances of AH projects which were sold out within weeks and days of launch, lower returns of value, unavailability of suitable land and not sufficient financing can make developers to
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• Affordable for middle class customers bringing a psychological was a dream come true 9.
• Maintenance responsibilities weren’t clear 9.

Making affordable houses faces many challenges because of urban, regulatory and economic issues 4. While the rising construction costs, lack of availability of land and regulatory issues are constraints of supply side, lack of access to house finance is considered as a demand – side constraint, which has a major impact on the low income group to purchase houses 4.
Supply side constraints:
Lack of availability of Urban Land
Increasing population density gives a huge demand in urban areas for land in India 4. The shortage has now increased more by poor municipal regulations. As a result, the land prices are now much more than intrinsic levels which support the mass development of real estate 4.
The prices of luxury residential projects are guided by land costs construction which have a significant share of affordable housing. This is because of the fact land prices fall varies depending from city to city, and costs of construction follow a trend from mid income to low income housing
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General view:
The market of LIH has made many forward strides and is currently serving low income, families. The gap among potential need and supply side is staggering, against a required necessity of 13 -15 million units for the household which earns between the following range i.e. INR 10,000 – 25,000 per month. For the supply side to increase the finance and housing, it is needed to address challenges in existing business environment. But, the gap alone cannot be taken by players so a need to attract low income consumers are necessary.

Major Hubs of Affordable Housing Development in Kolkata.

By the year of 2022 the central government is aimed to provide housing to all of its citizens. As per the approximation, the vision develops 11 crore housing units which include the present shortage of 6 crore units.
The state wise housing need of West Bengal by 2022

Below is a map of Kolkata which shows the distance of many locations from CBD
City Center: Park Street
Number of units came into being since 2010: 11,166 units

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