Upload
nihar-nanyam
View
215
Download
0
Embed Size (px)
Citation preview
8/10/2019 Housing Sector Kandarp
1/21
NTCC PROJECT WORK ON
Housing sector of India
Made by: Kandarp BajajEnrollment no.: A13567214036
BBA-CM
8/10/2019 Housing Sector Kandarp
2/21
We hereby declare that this project report entitled
Indian Housing Sector Analysis
is written by us and submitted to RICS SCHOOL OF BUILT ENVIORMENT,is a record of an original work done by us under the guidance of
Mr.Nihar Nanyam.
8/10/2019 Housing Sector Kandarp
3/21
ACKNOWLEDGEMENT
We are highly indebted to Prof. Nihar Nanyam for showing faith on us and
giving us an opportunity to make this report. He has been actively involved
right from the concept plan, draft and final report preparation. His timely inputs
and critical observation of the work helped us to improve our report.
Due credits to our parents, almighty God & peers for their timely help, support
and cooperation during this learning journey.
8/10/2019 Housing Sector Kandarp
4/21
Table of content
Analyst View
Research Overview
Market AttractionsResidential Real Estate Industry Outlook to 2013
Overview
Market Structure
Housing Units Number of Rooms Flat and Independent Houses Type of Ownership
Housing Demand Analysis
Affordable Housing
Current Demand Potentials Latest Developments
Medium Housing
Luxury Housing Current Demand Potentials Latest Developments City Level Analysis
Housing Deficit By States
Housing Finance
Home Loan Demand
Mortgage Rates
8/10/2019 Housing Sector Kandarp
5/21
List of Figures:
Figure 3-1: Real GDP Growth (%), 2010-2014Figure 3-2: Population (Billion), 2009-2014
Figure 3-3: Urban Population (Million), 2009-2014Figure 3-4: Average Family Size per Household (1990, 1995 & 2010)Figure 4-1: Housing Market Potential (Billion US$), 2012-2014Figure 4-2: Share of Housing Sector in Real Estate Industry (2005 & 2010)Figure 4-3: Housing Sector Contribution to GDP (%), 2008 & 2013Figure 4-4: Household by Number of Rooms (%), 2001 & 2008Figure 4-5: Forecast for Household Demand by Number of Rooms (%), 2013Figure 4-6: Share of Flat and Independent Houses in Rural Region (2003 &2008)Figure 4-7: Share of Flat and Independent Houses in Urban Region (2003 &2008)Figure 4-8: Share of Owned and Hired Houses in Urban and Rural Region(2004)Figure 5-1: Housing Demand Potential (Million Units), 2012-2014Figure 5-2: Housing Unit Sales Potential in Volume by Segment (%), 2012-2014Figure 5-3: Housing Unit Sales Potential in Value by Segment (%), 2012-2014Figure 5-4: Affordable Housing Demand Potential (Million Units), 2012-2014Figure 5-5: Affordable Housing Market Potential (Billion US$), 2012-2014
Figure 5-6: Medium Housing Demand Potential (Million Units), 2012-2014Figure 5-7: Medium Housing Market Potential (Billion US$), 2012-2014Figure 5-8: Luxury Housing Demand Potential (Million Units), 2012-2014Figure 5-9: Luxury Housing Market Potential (Billion US$), 2012-2014Figure 6-1: Mumbai - Housing Supply (Units), 2009-2011Figure 6-2: Mumbai - Distribution of Housing Supply by Location (%), 2009 to2011Figure 6-3: NCR - Housing Supply (Units), 2009-2011Figure 6-4: NCR - Distribution of Housing Supply by Location (%), 2009 to
2011Figure 6-5: Bengaluru - Housing Supply (Units), 2009-2011Figure 6-6: Bengaluru - Distribution of Housing Supply by Location (%), 2009to 2011Figure 6-7: Chennai - Housing Supply (Units), 2009-2011Figure 6-8: Chennai - Distribution of Housing Supply by Location (%), 2009 to2011Figure 6-9: Kolkata - Housing Supply (Units), 2009-2011Figure 6-10: Kolkata - Distribution of Housing Supply by Location (%), 2009 to
2011Figure 7-1: Faucet Market (Billion INR), 2010-2014
8/10/2019 Housing Sector Kandarp
6/21
Figure 7-2: Tiles Industry Revenue (Billion INR), 2007-08 to 2011-12Figure 7-3: Tile Industry by Type (%), 2009-10 & 2011-12Figure 7-4: Electrical Switch Market (Million US$), 2010-2014Figure 7-5: Cement Consumption (Million Metric Tons), 2008-09 to 2013-14
Figure 7-6: Finished Steel Consumption (Million Metric Tons), 2008-09 to2010-11Figure 7-7: Steel Consumption by Major Sectors (%), 2010-11Figure 7-8: Paint Industry (Billion INR), 2010-2014Figure 7-9: Paint Industry by Segment (%), 2011Figure 7-10: Paint Industry Revenue by Type of Paint (%), 2009-10Figure 7-11: Bathroom Fittings Market (Billion INR), 2010-2014Figure 7-12: Furniture and Furnishing Market (Billion INR), 2010 & 2015Figure 7-13: Furniture Industry by Consumer Segment (%), 2010Figure 7-14: Organized Wooden Flooring Market (Billion INR), 2011 & 2014Figure 7-15: Laminate Flooring Market (Billion INR), 2011 & 2014Figure 7-16: Modular Kitchen Market (Million US$), 2011 & 2014Figure 8-1: Pre-engineered Buildings Industry (Billion US$), 2010, 2012 &2014Figure 9-1: FDI Inflows in Real Estate and Housing Sector (Billion INR), 2008-2010Figure 9-2: Number of Announced PE Deals in Residential Sector (2008-2011)Figure 10-1: Housing Credit as a Percentage of GDP (2006-07 to 2010-11)Figure 11-1: Share of Factors Influencing Purchase of a House
Figure 12-1: Share of Factors Important to BuildersFigure 13-1: Senior Citizen Population (Million), 2009-2014Figure 14-1: Lending Interest Rates (%), 2010-2014
List of Tables:
Table 3-1: Population Breakup by Age Group (%), 2009-2014Table 4-1: Number of Occupied Residential Houses in Urban and Rural Region
by State (2001)
Table 4-2: Share of Flat and Independent Houses in Urban and Rural Region byStateTable 4-3: Share of Owned and Hired Houses in Urban and Rural Region byStateTable 6-1: Mumbai - Major Residential Projects LaunchTable 6-2: Gurgaon - Major Residential Projects LaunchTable 6-3: Noida - Major Residential Projects LaunchTable 6-4: Bengaluru - Major Residential Projects LaunchTable 6-5: Chennai - Major Residential Projects Launch
Table 6-6: Kolkata - Major Residential Projects LaunchTable 8-1: Top 10 Existing and Upcoming Residential Projects with IGBC
8/10/2019 Housing Sector Kandarp
7/21
Green HomesTable 10-1: Housing Loan Outstanding by Type of Financer (Billion INR),2007-08 to 2010-11Table 13-1: Senior Living Demand Distribution of Urban Households by Tier
CitiesTable 13-2: Senior Living Demand Distribution of Urban Households byRegionTable 14-1: Demand and Supply of Core Professionals (000),2010, 2015 &2020
8/10/2019 Housing Sector Kandarp
8/21
8/10/2019 Housing Sector Kandarp
9/21
Housing in Indiavaries greatly and reflects the socio-economic mix of its vast
population.
Housing varies from palaces of erstwhilemaharajas inRajasthan to modern
apartment buildings in big cities to tiny huts in far-flung villages. There has
been tremendous growth in India's housing sector as incomes have risen.
There are certain unique characteristics of Indian culture which often influence
how Indian homes are organised. A common traditional structure is for the
extended family to live in the same house, forming what is known in India as
ajoint family For instance grandparents, their sons, daughters-in-law and
grandchildren live in the same household sharing the same kitchen. Brothers,
sisters and cousins grow up together. Each husband-wife combination has their
own bedroom. The eldest woman in the house is generally incharge of cooking.
In joint families, women live with their in-laws after marriage.With modernisation there is a growing number of nuclear families, in which
each couple occupies its own house after marriage, in urban areas. It is still rare,
albeit not impossible, amongst traditional communities for senior citizens to live
alone. It is extremely rare even in urban areas for couples to live together before
marriage. Some single young adults live in same-sex dormitories or in shared
accommodation during college and the early working years.
The life-style in villages takes advantage of the warm weather. Many families
bathe outdoors in rivers and ponds. Most of the day is spent outdoors around ornear the house. Cooking is conducted outdoors in earthen stoves powered by
organic fuels or in modernkerosene stoves. Water is obtained from hand-drawn
wells. Men perform their ablutions in designated spots throughout the day;
Visitors to villages may find residents squatting down for an afternoon card
game under trees or while sitting on charpois (traditional hand-made beds)
brought outside during the day. Consequently they use their indoor space
primarily to sleep, change and, in electrified homes, to watch TV.
Low income housing
According to theTimes of India,"a majority of Indians have per capita space
equivalent to or less than a 10 feet x 10 feet room for their living, sleeping,
cooking, washing and toilet needs." The average is 103 sq ft per person in rural
areas and 117 sq ft per person in urban areas.
44 percent of rural households haveaccess to electricity.Although cities have
better facilities than villages, except for the major metros, no city in India
provides full-daywater supply.
http://en.wikipedia.org/wiki/Maharajahttp://en.wikipedia.org/wiki/Rajasthanhttp://en.wikipedia.org/wiki/Joint_familyhttp://en.wikipedia.org/wiki/Kerosenehttp://en.wikipedia.org/wiki/Times_of_Indiahttp://en.wikipedia.org/wiki/Times_of_Indiahttp://en.wikipedia.org/wiki/Times_of_Indiahttp://en.wikipedia.org/wiki/Electricity_in_Indiahttp://en.wikipedia.org/wiki/Water_supply_and_sanitation_in_Indiahttp://en.wikipedia.org/wiki/Water_supply_and_sanitation_in_Indiahttp://en.wikipedia.org/wiki/Electricity_in_Indiahttp://en.wikipedia.org/wiki/Times_of_Indiahttp://en.wikipedia.org/wiki/Kerosenehttp://en.wikipedia.org/wiki/Joint_familyhttp://en.wikipedia.org/wiki/Rajasthanhttp://en.wikipedia.org/wiki/Maharaja8/10/2019 Housing Sector Kandarp
10/21
States such asGujarat,Madhya Pradesh and others provides continuous power
supply. Some 400 million Indians do not have access to a proper toilet and the
situation is even worse in slums across Indian cities.
Funding
The national and state governments are running programs, some funded by the
World Bank, to improve conditions.Bharat Nirman is targeting clean water,
theJawaharlal Nehru Urban Renewal Mission is building public toilets and
sewage systems. The private sector, including companies such as Tata, have
started to enter the low-income residential projects.
Mumbai
The Imperial Towers,Mumbai are the tallest buildings in India.
Mumbai experiences similar urbanisation challenges as other fast growing cities
indeveloping countries: wide disparities in housing between the affluent,
middle-income and low-income segments of the population.
Highly desirable neighbourhoods such asColaba,Malabar Hill,Marine
Drive,Bandra andJuhu house professionals, industrialists,Bollywood movie
stars and expatriates. Up-scale flats have 3 or more bedrooms, ocean views,tasteful interior decoration, parking forluxury cars and sleeping quarters for
maids and cooks. Only a tiny fraction of people in Mumbai live in these luxury
high-rises. In 2007, Mumbai condominiums were the priciest in the developing
world at around US$9,000 to US$10,200 per square metre. Mumbai has more
than 1,500 high rise buildings, many of which are just planned, but some
already constructed or under construction.
Despite the recent economic growth, there is still vast poverty, unemployment
and therefore poor housing conditions for a huge section of the population. Withavailable space at a premium, working-class Mumbai residents often reside in
http://en.wikipedia.org/wiki/Gujarathttp://en.wikipedia.org/wiki/Madhya_Pradeshhttp://en.wikipedia.org/wiki/Bharat_Nirmanhttp://en.wikipedia.org/wiki/Jawaharlal_Nehru_National_Urban_Renewal_Missionhttp://en.wikipedia.org/wiki/The_Imperial,_Mumbaihttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Developing_countrieshttp://en.wikipedia.org/wiki/Colabahttp://en.wikipedia.org/wiki/Malabar_Hillhttp://en.wikipedia.org/wiki/Marine_Drive,_Mumbaihttp://en.wikipedia.org/wiki/Marine_Drive,_Mumbaihttp://en.wikipedia.org/wiki/Bandrahttp://en.wikipedia.org/wiki/Juhuhttp://en.wikipedia.org/wiki/Bollywoodhttp://en.wikipedia.org/wiki/Luxury_carshttp://en.wikipedia.org/wiki/File:ImperialMumbai.JPGhttp://en.wikipedia.org/wiki/Luxury_carshttp://en.wikipedia.org/wiki/Bollywoodhttp://en.wikipedia.org/wiki/Juhuhttp://en.wikipedia.org/wiki/Bandrahttp://en.wikipedia.org/wiki/Marine_Drive,_Mumbaihttp://en.wikipedia.org/wiki/Marine_Drive,_Mumbaihttp://en.wikipedia.org/wiki/Malabar_Hillhttp://en.wikipedia.org/wiki/Colabahttp://en.wikipedia.org/wiki/Developing_countrieshttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/The_Imperial,_Mumbaihttp://en.wikipedia.org/wiki/Jawaharlal_Nehru_National_Urban_Renewal_Missionhttp://en.wikipedia.org/wiki/Bharat_Nirmanhttp://en.wikipedia.org/wiki/Madhya_Pradeshhttp://en.wikipedia.org/wiki/Gujarat8/10/2019 Housing Sector Kandarp
11/21
8/10/2019 Housing Sector Kandarp
12/21
We are looking at the Housing Scenario at a stag when the National Economy ison the road to revival, after reeling under depressive conditions for over the lastthree years. The growth rate of the economy might go up to levels up to 6%, ifthe revival is kept up. Share markets are not entirely looking up, though they are
stabilizing at levels which can be termed as reasonable. Industrial growth ratewhich was wallowing at a low of 1.5% is now at around 5%. In fact, industrialcredit given out by banks which in normal times would be about 4-5 times of
bank credit given to housing, had in the last few years reduced to levels belowadvances to housing loans. But the happy feature is that industrial growth is
picking up. Even, the steel sector which was hopelessly down is now havinghopes of revival.
It is only housing, amidst all these that seems to have kept up fairly stable front.
Yes, the late 90s saw even housing go through a bad phase. But, then with that
phase crossed, there has been a steady revival and stabilization of the market at
levels which can be termed as reasonable from the point of view of both the
customers and those on the supply side. Housing is a basic need and like any
basic human need will be constantly in demand. The potential for housing in
this country is huge by NHB estimates. And the requirements by NHB estimates
are around 20 million houses. There are other estimates which suggest that it is
at a much higher level. Even going by the conservative estimate taken by the
NHB, the requirements in the area of housing are massive. This really means
that a lot of investments cab be there in the coming years and there is room for
multiple players.
Going by figures of amounts given out by the organized financial sector, the
average of money being advanced for purchase of housing is in the range of 20
to 25 thousand crores every year over the last five years. In the next five years
these may be in the region of 70-75 thousand crores. There is also talk of
foreign direct investment coming in. this will add to the capabilities of the
financial sector in meeting the requirements in the area of housing. The
considered view on FDI is that it would not in any way present hardships to the
local developer community. They may on the other hand enable the local
entrepreneurs to organize the construction industry in a more stable way. The
reason why I venture forth to say this is that finance has been one of the areas of
uncertainties as far as investments into the construction industry are concerned.
8/10/2019 Housing Sector Kandarp
13/21
8/10/2019 Housing Sector Kandarp
14/21
constantly giving a signal for a soft interest regime has been lowering its Bank
rate and CRR constantly thus, enabling banks to have recourse to greater
liquidity at lower cost. For the Housing Finance Institutions however, there has
been a difficulty of their being able to match such interest rate reductions, since
the cost of funds borrowed earlier, kept the average cost a fairly high levels. But
then they have fallen in line with the market to remain in contention. This has
had the result of even bringing down the spread for the Housing Finance
Companies.
The customer who is purchasing a house today has not only the options of
competitively lowest rates of interest, but also choice of different types of loans
starting from the house-purchase or house-building loans to house-improvement
loans, home equity loans [ loans on mortgage of property], home extension
loans, NRI loans etc. It has never been better than this ever before.
While this is such a positive development, as far as the home seekers are
concerned, the lot of home builders are still a long way behind the satisfactory
levels. Even today, with the organized groups of Developers, being by and
large, quite influential, still availability of institutionalized finance, as a regular
source, has been almost absent as far as the average Developer is concerned.
This has been an area of major concern for the Builders. The more enlightened
platforms of developers at National levels like CREDAI and NAREDCO have
been trying to grapple with this matter to bring about some stability on this
front. In fact the Housing Finance Companies and the representatives of the
developers have been sitting together to thrash out some commonly agreed
methods whereby finance to developers can be a more dependable arrangement.
Surprisingly, it is this attempt by the developer community that has even forged
a common platform for the HFCs to meet! Credit is certainly due to the
Developers organizations for having brought the HFCs closer, in their own
quest for a solution to the area of construction finance.
One of the reasons why financiers shy away from developer-finance is that the
developers are not systematically organized like the Corporates. Their picture is
not transparent; the variations are from a proprietorship builder to partnerships,
8/10/2019 Housing Sector Kandarp
15/21
closely held family concerns, Private Limited Companies, Public Limited
Companies etc. Often the company that comes out to borrow is part of a bigger
group and the credentials presented for assessment do not carry the total
financial picture of the group. There is a difficulty about assessing track record
of small or medium builders since they keep changing their names and one ca nt
push back enough to know the full picture. Even when financials are presented
they are not professionally done and there is difficulty in looking at it as one
would look at a regular corporate business house. A lot of deals do not get
reflected in the financials since two-levels deals, namely cash the cheque, make
it difficult for clear assessment of actual position. Individual developers keep
having incomes moving up and down over the years which again is a reflection
of booking of income only when sale results. Since project work and sale
alternate at different levels, incomes too fluctuate making it difficult for
assessing a picture of stable or growing incomes. Since there is so much variety
thrown in, the financial companies find it very difficult to evolve standardized
set of norms for lending to developers. In fact, after the experience of wholesale
defaults in the loan account of the Builders in the late 90s, the financial
companies have only selectively moved forward with finance to developers.
One of the most important requirements from the side of organizations like
NAREDCO and CREDAI is that the Builder community needs to he helped to
organize themselves on professional lines. A certain uniform set of accounting
practices need to be followed. The developers also need to bring certain
uniformity in their practices as far as the house purchasing customers are
concerned. In the context I would like to quote Shri Deepak Parekh, The HDFC
Supremo, who gave a call in the recently concluded CREDAI National
Convention to the developers on a few important things.
Shri Parekh appealed to Developers to go by carpet area, and charge, if
required, additionally on sq. ft rates for the super plinths area which provided
common services. This would make it very simple for the customer to
understand what area he stands to have in the flat he is about to purchase. The
other practice relates to payment being made by purchasing customers at time
periods specified in the agreement. His point was that these payments should be
related to progress of constructions and not merely on time schedule. The third
8/10/2019 Housing Sector Kandarp
16/21
point he mentioned was regarding two-level pricing. A number of these aspects
will need to be considered by the developers. They need to make their various
centre-level associations bring in some standards in the working of the
developers. Together the industry should present a picture of confidence, if
financers and customers are to look at them with a sense of reliability. While at
the top levels big developers are well organized and institutionalized, a lot of
the others in the field are not giving out such signals of confidence to financiers.
Therefore, the role of NAREDCO and such organizations would be to bring in
uniform standards and practices amongst Builders so that they would be in a
much better position to look at institutional help which is today so much
conspicuous by its absence.
8/10/2019 Housing Sector Kandarp
17/21
Estimation of Housing Stock:For estimation of housing stock in the year 2007,simple exponential growth rate in housing stock has beencomputed for the nineties using the data from Population
Census. The growth rate of 3.2 per cent per annum for puccahouses, thus computed, has been taken as valid for the next sixyears for projection purposes. The estimated number of puccahousing stock thus works out to be 49.99 million in 2007. Thegrowth rate for this combined category (semi pucca andserviceable kutcha) is noted to be 0.28 per annum during thenineties. Using this, it is estimated that the total number of semi
pucca and serviceable kutcha houses would be 9.94 in 2007,giving the total housing stock to the tune of 59.93 million.The NSSO in its report No. 488 has also estimated that7.17 million constructions have been completed during the last 5years (1997-2002). This implies that about 1.45 millionconstructions have been completed and added to the existinghousing stock every year, based on the assumption of constantaddition in housing stock in each year. The annual exponentialgrowth rate in the housing stock thus comes to about 2.63 percent in the acceptable housing stock during nineties. This ismuch on the higher side since the figure for katcha does not14
exclude the unserviceable katcha. Once that figure is taken outin the calculations, the growth rate will be less than even what isnoted from the Census data for the nineties.Estimation of Obsolescence factor:The Obsolescence factor has been defined by the 9th PlanWorking Group as the percentage of households living in thedwelling units aged 80 years or more. These units are deemed to
be unfit for habitation. The value of the obsolescence factor hasbeen calculated on the basis of NSSO data. The Census of India,
2001, for the first time, has provided the estimates of thehouseholds living in dilapidated dwelling units. The percentagefigure of the households living such units is 3.60%. The NSSOin its 58th round (JulyDec 2002) (Report No. 488) has also
provided the estimates of number of households living in thehouse by age and condition of house, as mentioned below:Estimation of Housing Shortage as on 2007:Utilizing the alternate estimates of the congestion andobsolescence factors as mentioned above, housing shortage has
been estimated as on 2007 as follows:As on 2007
8/10/2019 Housing Sector Kandarp
18/21
1.Households (Mn) 66.302.Housing Stock (Mn) 58.832.1 Pucca 47.492.2 Semi Pucca 09.16
2.3 Kutcha 02.183. Excess of HHs over Housing Stock (Mn) (12)07.474. Congestion factor (%) 19.114.1Congestion in Hhs. (Mn) 12.675. Obsolescence factor (%) 3.605.1Obsolescence in Hhs. (Mn) 02.396. Upgradation of Kutcha (Mn) (2.3) 02.187. Total Housing Shortage (3+4.1+5.1+6) 24.71Housing requirement during the 11th Plan Period (
2007-2012):The housing requirement during the 11th Plan period has
been worked out by utilizing the rate of growths on variousparameters as has been applied for arriving at the housingshortage as on 2007 assuming that the rates will not changedrastically during the 5 year period of the plan. Therefore, theestimates of households, housing stock etc. as on 2012 will be:As on 2012
1.Housing Shortage as on 2007 (Mn) 24.712.Households (Mn) 75.013.Pucca Houses (Mn) 53.494. Semi Pucca Houses (Mn) 10.055. Katcha Houses (Mn.) 2.566. Addition to households (Mn.) 8.717. Addition to housing stock 7.278. Upgradation of Katcha Houses(Mn.)
0.3810. Additional requirement (Mn.) (6-7+8)1.8211.Total requirement (Mn.) 26.53Thus it is clear that, taking the business as usual scenario,the total shortage of dwelling unit at the beginning of the 11thPlan Period i.e. 2007 will be 24.71 million. The housing25
shortage during the plan period (2007-2012) including thebacklog can then be computed as 26.53 million.
8/10/2019 Housing Sector Kandarp
19/21
Reasons for variation in estimates of housing
shortages vis--vis the 10th plan Working Group:
The results of Census of India, 2001 relating to thehousing and housing amenities were not available at
the time the estimates of housing shortages werebeing worked out by the 10th Plan Working Group onUrban Housing. Understandably, therefore, the latterhad arrived at the projections by utilizing the datafrom the Census of India for the period 1961-1991. The estimates for housing parameters for the period2002-2007 i.e. 10th plan period arrived at by utilizingthe data pertaining the earlier decades i.e. 1961-1991are statistically not acceptable.27 In the present case, the more recent informationavailable from Population Census as well as NSS has
been used in projecting the housing scenario. Greater weightage has been given to the trendobserved during 1991-2001 rather than to that of theearlier decades. Information on socio economic characteristics ofhouseholds living in different types of housesavailable from NSS has been utilized in
understanding the trends as also in projecting theseinto future. A different methodology and data set have beenadopted to arrive at the estimation of congestions inthe households. The 10th Plan Working Group had defined theconcept of congestion and obsolescence in a limitedmanner which does not capture the reality on theground.
In the present case, an attempt has been made todefine the concepts in a socially and empiricallysatisfactory manner by taking into consideration thehousing situations as reflected through the latest
publications of national level statistical agencies. While arriving at the total requirement of dwellingunits at the beginning of the 10th plan period, a veryimportant factor i.e. increase in the number ofhouseholds was left outside the purview of the
calculations.28
8/10/2019 Housing Sector Kandarp
20/21
In the present exercise, this has been taken intoaccount to project the total requirement of dwellingunits at the end of the 11th plan period.Conclusions:
The following conclusions have been made by theTechnical Group:1. That the housing shortage as on 2007 is 24.71 millionand the total requirement of housing during the 11thFive Year Plan period (2007-2012) will be 26.53million.2. The Group had a very short period at its disposal andwas to submit its report within 7 days from the date ofits first meeting. Due to time constraint, the Groupcould not delve upon the issues relating to the financesavailable to households and its repayment capacity ofthe housing loans which also affects the affordability ofthe better housing units by the households.3. That a detailed study be given to NBO to study therequirements of housing, both in rural and urban India,which may take into account various other issues whichmay be identified crucial for the study.4. That the NBO needs to be strengthened suitably, both
by manpower and machines, for better coordination
between the Central and State Govt. Organisationsengaged in collection and dissemination of housingstatistics. The technical manpower may be outsourcedfrom open market as suggested by Deptt. OfExpenditure, Min. of Finance in its restructuring of
NBO.295. NBO also needs to be strengthened to discharge itsduties as the nodal organization in the field of Housing
Statistics to meet the requirements of planners andpolicy framers by means of creating a national resourceand warehousing centre in housing statistics.The definitions adopted by the Technical Group:Household: A group of persons normally living togetherand taking food from a common kitchen constituted ahousehold. The members of a household might or might not berelated by blood to one another.Dwelling Unit: A accommodation availed of by a
household for its residential purposes. It might be entirestructure or a part thereof or consist of more than one structure.
8/10/2019 Housing Sector Kandarp
21/21
Pucca: A structure whose walls and roof were made ofpucca material such as cement, concrete, oven burnt bricks,hollow cement/ash bricks, stone, stone blocks, metals, asbestoscement, wood, plywood etc.
Katcha structure: The structure whose wall and roof,both, are made of non pucca material.Unserviceable Katcha: Unserviceable katcha structure isthe structure with thatched walls and thatched roof.Serviceable Katcha: A katcha structure other than theunserviceable katcha is serviceable katcha.Semi-pucca: A structure which could not be classified asa pucca or a katcha structure as per definition is semi-pucca.Such structure had either the wall or the roof, but not both, madeof pucca material.30Living Room: A room with floor area of at least 4 squaremetre, a height of at least 2 metres from the floor to the highest
point in the ceiling and used for the living purpose. Abedroom, sitting room, prayer room, dinning room, servantroom meeting the size criterion, are considered at living room.A room used in common for living purpose and as kitchen orstore was also considered as living room.Obsolescence factor: Percentage of households living
in the dwelling units having age 40-80 years and are in badcondition and percentage of households living in all structuresaged 80+ years, irrespective of condition of structure, takentogether is taken as obsolescence factor for the purpose of thereport.The Ninth Plan Working Group on Urban Housing hadadopted the obsolescence factor as percentage of householdsliving in 80+ years old dwelling unitsCongestion factor: Percentage of households in which
atleast one couple is not having a separate room to live in. Thisincludes the households in which couples are sharing the roomwith 10+ age member of the household.The Ninth Plan Working Group on Urban Housing hadadopted the factor as percentage of married couples equireseparate room/house.Couple: All married couples in a households irrespectiveof their ages. A man with two wives in a household constitutedtwo married couples. But a woman with two husbands in a
household formed a single couple.