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8/2/2019 History of RE & GOI Policies (No4)_ppt
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History of Real Estate
ASUM
MBA (UI & REM)
AMITY UNIVERSITYUTTAR PRADESH
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History of Real Estate in India
Till 1960, the sector was unorganized
and perceived as risky and speculative.Developers were funded by money
lenders while Customers accumulated
funds from their own savings and sale ofland, ornaments etc.
Banks did not provide mortgage finance
till 1970.HUDCO was set up during 1970 & 1nd
HFI during 1977 to finance housing
projects.
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In the late 1980s, the GOI started
recognizing the integral role of housing
in the overall economic development ofthe country.
In 1988, the NHB was set up to channel
resources to housing finance.GOI introduced the draft National
Housing Policy, which was later adopted
by the parliament in 1994.
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The RBI guidelines of 1989 requiredcommercial banks to set aside at least
1.5% of their incremental deposits for
housing finance.
During 1980s and 1990s, housing
finance institutions emerged as the keylenders in the real estate sector.
Further, interest rates continued to be
regulated by NHB until as late as 1994. In 2002, the GOI permitted 100% FDI.
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Gruesome situation of housing.
Uncontrolled population explosion esp.
in urban areas.
Requirement of massive participation of
private sector.
What data says: By 1997 India had an estimated housing shortage
of 13.66 million units, out of which 7.57 million units were in theurban areas.
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Role of Government after policy
formulation
REGULATOR FACILITATOR
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NEED AIM TARGET
For sustainable
development of
infrastructure.
Fostering PPP forpurpose of housing
HOUSING FOR
ALL
Construction of 2
million houses
every year.
Out of which 0.7 millionare to be constructed in
urban areas
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NEED AIM TARGET
Rapid pace of
urbanization.Migration from rural to
urban areas.
Mismatch between
demand and supply.
HOUSING FOR ALL The NURM with the
annual outlay ofapproximately Rs.5,500
crores in 2005-06 would
support 60 cities (7
mega cities, 28 metro
cities and 25 category`C cities) across the
country in terms of
investments into
infrastructure gaps,
taking the urban systemfrom a non-conforming
state to a conforming
state with proper
planning and all urban
infrastructure in place.
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NEED AIM TARGET
Urbanization andDevelopment
Rural To Urban Shift of
Labour
Balanced Regional
Development
New Integrated
Townships and Green
Field Development
Urban Planning
Affordable Housing
Increase Supply ofLand
Special Provision for
SC/ST/OBC/Minorities/
Disabled
Special Provision forWomen
Employment
Generation
Public-Private
Partnerships
Management
Information System
Healthy Environment
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In Urban Areas, more than 97% of thetotal housing requirement i.e. 25.73
million units required for poor andlow income segment households(As per MH&UPA, GOI)
In Rural Areas, more than 90% of thetotal housing requirement i.e. 42.68million units required for BPLHouseholds.
(As per Working Group Report on RuralHousing, MORD, GOI)
Average Per annum Funds Requirementsduring 2007-12 = Rs.1,20,00 crores
Estimated Housing
Requirements
during 2007-12
UrbanAreas 26.53 million units
(24.71 million in 2007)
RuralAreas 47.43 million units
Total (All India) 73.96 million units
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Growth of housing finance is about 30% during last three years
But, housing requirements for poor/EWS increased
Need to not only develop New Financial Architecture but also
Policy and Regulatory Framework for Affordable Housing
on sustainable lines for poor/EWS
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Therefore,
The test of our progress is not whether
we add more to the abundance of thosewho have much; it is whether we provideenough for those who have too little.
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Future Theme
Development of Market based Housing Finance Systemfocusing on Unserved and Underserved segments
To bring appropriate changes in policy & regulatory framework
Catalyze Increased Investment through Private SectorParticipation/Builders
Objective
To reduce housing shortage for poor/EWS
To introduce customised housing cum income generatingproducts for poor/EWS
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Jawahar Lal Nehru Urban Renewal Mission (JnNURM)for bringing appropriate policy and legal reforms forproviding affordable housing to poor/EWS
Emphasis on Public Private Partnership focusing on
housing for poor/EWS
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Thrust of Policy Initiatives :Affordable Housing
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Conclusion
Providing adequate housing to all is not aninsurmountable goal. Governments need tolook at the settlements of the poor not aspart of the problem but as part of the
solution and to look at the poor not asbeneficiaries but as the primary actors atthe centre of their own development. Withthese attitudinal changes and with thepolicies outlined above, the right toadequate housing can be operationalizedand realized.
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Thank You