Are Affordable Houses Habitable?

When buying a home, a buyer pays a premium for the amenities provided in the project, but, when we say affordable property, we only think of the price of the property what is forgotten is the basic facilities that a homebuyer expects and should be provided with. Unfortunately, in a country so vast and amenities not being free, most homebuyers ─ whether buying an affordable or a luxury property, feel the pinch.

“Given the limitations on 'Affordability to Pay' of various income groups, housing options for such groups are decided in terms of whatever is 'possible' within these limits. Housing defined as being a package of multiple characteristics including location, tenure, size, infrastructure etc ─ compromise is made mainly on location and size,” says a study by ASSOCHAM and Jones Lang LaSalle.

What is the impact of nature of work?

Affordability is closely linked to the work profile of the urban poor. For instance, most of them work in the informal sector where the incentives or salary received is on hourly basis. Now, if low-cost housing is not close to their workplaces, the affordability to pay naturally gets affected. Commuting long distance also translates into more expenses and lower income as well as little or no time left in hand. Therefore, if the affordable houses are away from city centres, it surely does not pass the habitability test.  

The reason is 'different'

“The objective of providing affordable housing for all is not only to provide housing within their affordability limits but also to provide a superior package of housing than what they have at present. The trade-off between location and tenure/infrastructure may not always be a preferred option for the poor,” the study further says. However, the buyers are left with no choice but to choose an uninhabitable home over a property in a good location that may come with a higher price tag.

Too small for a living

Provision of small, one-room units with minimal area needs to be reappraised. According to the study, the housing problem in various government records is not only about the dilapidated housing conditions but also a large number of households living in congested conditions. Housing is a long-term commitment, and it is time that the government focuses on providing habitable bigger homes. By providing for small-sized high-density units, one would be replacing one type of slum with another.

Where is the silver lining?

P K Aggarwal, chairman, Signature Global Group, says, “The macroeconomic and global scenario is yet to play its part in the growth of Indian real estate sector. As we move towards encouraging foreign investment by relaxing norms and eradicating the barriers of entry and exit, foreign funds, technology, and concept will only better the scenario in India. Affordable housing being a trending concept in India, will soon witness heavy foreign fund inflow which will be helpful in meeting the goal of Housing For All. The competition will also greatly benefit Indian homebuyers.”