Housing Development: New Opportunity for Consulting firms

Kishore ThapaActing Secretary

Water and Energy Commission Secretariat,

Government of Nepal March 11, 2009

Courtesy: Civil Homes

Housing Situation of Nepal(Nepal Living Standard Survey 2003)

Description 1995-96 2003-04

Owner occupied 93.8 % 91.6%

Renters 2.2 5.4

Access to electricity 14.1 37.2

Access to piped water 32.8 43.9

Provision of Toilet 21.6 38.7

Concrete roof 5.7 13.6

Average size of Dwelling Unit

604sq.ft 531sq.ft

Housing Development Process in Nepal

• Housing is individuals’ responsibility.• The owner-built housing is predominant.• Social housing scheme is non-existent.• Housing is more than a commodity- it is a

symbol of status and an indicator of social security.

Common Features of Owner- built Housing

• It is the owner who:– mobilizes finance,– purchases land, – hires architect/engineer – gets building permit, – hires contractor for

construction, – gets services like road

access, water, drainage, electricity, telephone.

Difficulties in Owner- built housing

• Land is purchased from land brokers, finance is mobilized through personal savings or loan from friends and relatives.

• Designers and contractors are hired on informal basis without any formal contract.

• Physical infrastructure is often sub-standard.

• House construction is incremental and takes many years to complete.

Difficulties (contd)

• There is no uniformity in design or harmony in built environment. People build as per their wish with least regard to their neighbors or existing environment.

• For municipalities, it is very difficult to impose design guidelines and standards.

Housing Need and Demand

• Housing is a basic need which people fulfill through formal or informal means.

• Organized housing development meet housing demand through formal means.

• Slums and squatters settlements meet housing demand through informal means.

• Squatter settlements emerge due to gap between need and supply in formal system.

Formal and Informal Processes of Housing

Formal process:

Land Infrastructure Building People

Informal process:

Land People Building Infrastructure

Six Attributes of Housing1. Location2. Land3. Infrastructure4. Physical structure5. Finance6. Tenureship

National Shelter Policy of Nepal-1996

• The role of the government will be that of a facilitator and enabler.

• Private sector will be promoted to the delivery of dwelling units

• The government will limit itself to provision of basic services and regulatory mechanisms.

Factors affecting housing development

• Government policy• Housing market

(Demand and supply)• Construction

technology (materials, workmanship)

• Housing finance• Land market• Physical and social

infrastructureCourtesy: Civil Homes

Legislative framework for Housing Development in Nepal

• Apartment Ownership Act-1997.• Town Development Act 1988.• Local Self Governance Act -1999.• Land Survey Act 1962.• Building Act 1997.• National Building Code 1996.• Nepal Engineering Council Act 1997.

Actors in housing market

BanksFI Developers

Households Govt.

Builders

Land owners

Consultants

Real Estate agents

Vision in housing sector

• Our vision should be that all the Nepali citizens live in a safe and decent shelter”.

• Our mission should be that “each and every Nepali household is provided with affordable and adequate shelter”.

Opportunity for Consultants

• Housing development creates new projects in the private sector.

• The size of housing projects is bigger than individual building projects.

• Housing projects demand cost effectiveness, functionality and aesthetically pleasing built environment.

• It involves planning, design, detailing, construction management and marketing.

Consideration for improved housing design

• Efficient site planning.• Functional space design of dwelling units.• Energy efficiency.• Pleasing built environment.• Contemporary architecture.• Inclusiveness( meeting requirements of

aged, disabled, children and women).

Types of Housing Projects

• Group Housing.• Apartments.• Slum improvement.• Land development.

Recommendations

• Understand the housing situation and the housing process of the country.

• Know the actors in the housing sector.• Understand the housing market.• Understand the legal and administrative

requirements for government approval.• Think how slums and squatters can be

improved.

Recommendations

• Think of how cost of construction can be minimized.

• Think of how different income groups can live together in a single colony.

• Think of how dwelling units can be provided at affordable cost.

Thank YouCourtesy: Chhauni Housing