Affordable

Housing
A STUDY OF MIG HOUSING IN INDIA
 What is MIG?
S. Researcher/Auth Year Parameter 1 Parameter 2 Parameter Parameter Affordability/EMI Year
No ority Income level spending 3 4 ref for
. Vehicle Size od DU price
ownership
1. Banerjee and Duflo 2008 spending $2 and $10 per 1993
capita per day
2. Kharas 2010 daily per capita incomes
between $10 and $100
3. NCAER 2010 Annual income between between $8 to $40 per 2001-02
Shukla 2 lakhs and 10 lakhs capita per day
4. ADB 2010 between $2 and $20 per 2005
person per day
5. Meyer and Birdsall 2012 lower threshold of $10 2005
per capita per day and
upper bound at $50
6. Krishna and Bajpai 2015 Scooter to cars
7. MoHUPA 2015 Income lvl 6 lakhs to 18
lakhs pa
8. Ankit Pahade, Pranay 2015 Between 3-10 lacs per Between 600- 40% of gross monthly income
Khare annum 1200 sq. ft of buyer
9. Sandhya Krishnan and 2017 US $2 to $10 per capita
Neeraj Hatekar per day
 Various Researchers’ Viewpoints on Affordability Parameters
S.N Author Parameter 1 2 3 4 5 Affordability Article (Year)
o.

What is Affordability in
Housing? 1. Ms Deepti income level size of Rent     EMI to monthly Core Issues and
Pande Rana dwelling affordabil Income=30-40% Challenges of
unit ity Affordable Housing in
Dr. Arun India (2016)
Kumar Rana
2. Kalpana income Size Rent Maintenan Location AFFORDABLE
Affordability in Housing Gopalan criteria affordabil
ity
ce cost
affordabilit
affordability HOUSING: AN
ACADEMIC
Madalasa
depends upon 3 factors: y PERSPECTIVE ON
POLICY AND PRACTICE
Venkataram
an IN INDIA
1) Income level (2015)

3 Kana Ram Income   House Spending Size of family Affordable Housing

2) Size of dwelling unit price and saving
behaviour
Opportunities in Small
Indian Cities- A Case
study of Industrial
Migrant
3) Rent Affordability/ Ratio (2013)
of House Price to annual 4 Ramakrishn   Housing Rent to     Affordable Housing
income a Nallathiga unit size income
ratio
Development in India:
Current Models and
Their Replication
Ratio of House price to (2018)
Income ratio by MoHUPA 5. Income level Size of Proportion Affordability, Housing
is 30-40% but no evidence dwelling
unit
of
expenditur
Demand and Housing
Policy in Urban India
to show its validity e required
(1998)
Piyush Tiwari for housing
Jyoti Parikh

             
Source: Author
(MoHUPA: Ministry of Housing and Urban Affairs, Government of India)
 International definitions of Affordability
30% of income The Brooke Amendment (1968) USA
• Rent affordability/ Purchase Affordability

Repayments towards Housing Gan and Hill (2009)

• Repayment Affordability

Transportation costs
H+T
• Location Affordability
• Availability of physical and social infrastructure
• Livability Affordability
• Ongoing routine Maintenance
Conclusion: AH is not a single static figure. Need for a holistic Housing Affordability
Measure Ref: Kalpana Gopalan, Madalasa Venkataraman, 2015, Affordable Housing: Policy and Practice in India
House price to Income Ratio in Cities

city NCR Mumbai Bengalur Pune Hyderab Chennai Ahmeda Kolkata

u ad bad
2010 6 11 6 5 6 5 4 6
2018 5 7 4 3 5 4 3 3

Source: Knight Frank Research

Note 1: Knight Frank Affordability Benchmark is 4.5 times the average household income Note
2: City-wide average affordability statistics are useful but they cannot highlight disparities in housing costs
within sub-markets or across the income spectrum
 40%

KPMG: Klynveld Peat Marwick Goerdeler (global

financial consultants)

Source: Ankit Pahade, Pranay Khare (2015)“Affordable Housing: A

Present Need in Housing Sector”
And Deepak Parekh Committee report 2009

Taken from: Affordable housing in India published by IBEF (India Brand Equity foundation) via Aranca Research
 Predicted rate of Urbanisation

Definitions:
Rural: population less than
10,000.
Semi-Urban: 10,000 and above
and less than 1 lakh.
Urban: 1 lakh and above and
less than 10 lakh.
Metropolitan: 10 lakh and
above.
Source: RBI website

Published in RBI Bulletin January 2018

According to McKinsey report (2010) India will have 40% of its population living in urban areas in 68 cities by 2030
Affordable housing demand
Middle Income Groups

Source: IBEF
(https://www.ibef.org/industry/r
eal-estate-india.aspx)

Source: McKinsey Global Institute (MGI) 2010.

Apartment/Residential real Estate
Sales

Factors for the Sales trends:

1. Benami Transactions (Prohibition)
Amendment Act, 2016
2. Demonetisation of high value currencies
3. Goods and Services Tax (GST)
4. Real Estate (Regulation and Development)
Act, 2016 (RERA)
5. ‘Housing for All by 2022’
 Current and Projected Housing demand

Source: Report of the technical group (2012-2017) to the Ministry of Housing and Urban Poverty Alleviation (MHUPA) on
urban housing shortage, 2012; Working group on rural housing for the 12th five-year plan, 2011; Decoding housing for all
by 2022, 2014 -according to a study by KPMG and NAREDCO
Taken from:- SCOPING PAPER: TECHNICAL ASSISTANCE FOR AFFORDABLE HOUSING SECTOR
Taken from: Affordable housing in India published by IBEF (India Brand Equity foundation) via Aranca Research
Demand for Affordable Housing
Progressive Urbanization and
Growing Population

Rising Incomes and

• Improved
Expanding middle Class
Affordabl Economy
e Housing • Better Quality
of Life

Real Estate sector’s Contribution to

the country’s GDP
Indicator of
balanced growth
of the Country Ref: Kalpana Gopalan, Madalasa Venkataraman, 2015, Affordable
Housing: Policy and Practice in India
Affordable Housing Shortage
Plan, Policy, Program, Project PLA
Plan: A plan provides a comprehensive detailed
N
course of action directed at achieving a specified Policy
end result. Plan is a long-term vision of where a
municipality wants to be in the future, as well as the
steps it will take to get there

Policies are covenants we collectively choose to live Program

by, as articulated in legislation and regulation. Policy is
a broad set of principles that guides the government in Schemes
its course of action regarding a particular subject.

Program: A program is comprised of multiple projects

Project 1 Project 3 Project 2
that aim at outcomes and benefits (not outputs). It is a
Policy delivery tool to provide goods and services.
Programs are short-term interventions that create
temporary improvements in the wake of challenges.
Scheme: It is a large scale systematic plan or
Project: A project is comprised of individual tasks that arrangement for achieving some particular defined
aim at specified outputs or deliverable products. goal or object .
Policies by Government assisting Affordable Housing
Jawaharlal Nehru National Urban Renewal Mission (JNNURM) in 2005

National Urban Housing and Habitat Policy in December 2007

Basic Services for the Urban poor (BSUP)

Integrated Housing and Slum development programme (IHSP)

Rajiv Awas Yojana 2009 (scheme of Affordable Housing in Partnership (AHP)

Pradhan Mantri Awas Yojana 2015 (Housing for All by 2022)

Delhi Development Authority Housing Scheme 2018 PMAY(U)

HFA

Affordable Beneficiary Led

Credit Linked In-Situ Slum Housing in Construction or
Subsidy Scheme Redevelopment Partnership Enhancement
CLSS ISSR AHP BLC

Mission Components of Pradhan Mantri Awas Yojna

 Government Housing Policies/schemes
S.N Policy year Target Types of Government aims Progress
o. population intervention
2 Land Banking and Land acquisition 1993 Planning policy

1 Urban Land Ceiling and Regulation 1976 Legislative Policy

Act 1948
Rent Control Act
3 Indira Awas Yojna 1998 Rural BPL Housing Program • building pucca houses
Pradhan Mantri Awas Yojna 2015 families Scheme • Cash subsidy scheme (loan)

4 Jawaharlal Nehru national Urban 2005 Urban poor construction of 1.5 m houses
renewal mission
Sub-Missions: BSUP, IHSDP

5 National Urban Housing and Habitat 2007 EWS/LIG Planning Policy • New affordable housing
Policy groups projects
MIG/HIG • fiscal incentives
6 Interest Subsidy scheme for housing 2008 Urban poor Scheme Loan with central Government
the Urban poor (EWS/LIG)

7 Rajiv Awas Yojna 2009 EWS/LIG Scheme Slum free India

Source: Kiran Wadhwa(2009) Affordable Housing for the Urban Poor

 Government Initiatives

Source: IBEF website

 Major Central Government Urban Housing Schemes

Source: Ministry of Housing and Urban Affairs; Taken from: India Infrastructure Report 2018: Making Housing Affordable
Developers exploring the AH
segment
Tata Housing

Provident Housing

Unitech

Soham Group

Ansal Properties
 Research on self transformations in housing/need for
incremental housing
S.No. Article Author Sampling Self Changes Issues Solutions
1 Transformations Chhaya MIG FLats Extra floor Light and Structural
Nirwan Dilshad Garden, Extended balcony, ventilation solutions,
(2007) Janakpuri, covered front court, compromised, Design
Munirka wider openings. New structural solutions,
rooms, canopies, stairs stability, Electrical,
added plumbing
2 Plot Level Housing Amrita MIG plotted Change in FAR, mixed Uneven growth Revising the
Redevelopment: A Kaur housing land use, 4 DU per of density, byelaws more
Comparative Study of Gulati Malviya Nagar, plot impact on frequently as
Three different (2015) Westend, Haus infrastructure, per customer
Categories of Planned Khas commercialisatio requirements
Colonies of Delhi n on ground
floor
Need for Affordable housing
guidelines
References
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