Affordable Dream House

After ECB (External Commercial Borrowing) has been allowed for developing affordable housing, a number of developers are evincing interest in the segment. ECB may have to be routed through the NHB (national Housing Bank) which could act as a centralised mechanism to help small developers avail the facility. The government would also allow developers to avail the facility and raise debt only for projects where a significant portion of units (75-90%) are reserved for the LIG and EWS. According to the estimates of the Technical Group constituted by the government, the urban housing shortage in the country at the end of the tenth Five-Year Plan was estimated to be 24.71 million for 66.30 million households. The group further estimated that 88% of this shortage pertains to houses for EWS and 11% for LIG. For MIG and HIG, the estimated shortage is only 0.04 million. During the 11th Five-Year Plan, the group estimated that the total housing requirement in Indian cities (including backlog) by end of 2012 will be to the tune of 26.53 million dwelling units for 75.01 million households. If the current increase in backlog of housing is maintained, a minimum of 30 million additional houses will be required by 2020, according to Jones Lang LaSalle.


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