Print Page   |   Sign In   |   Register
Publications Library
Blog Home All Blogs
Search all posts for:   

 

View all (508) posts »
 

Building Houses, Financing Homes: India's Rapidly Growing Housing and Housing Finance Markets for the Low-Income Customer

Posted By Administration, Tuesday, August 25, 2015
Updated: Tuesday, June 16, 2015

Rapid urbanization has led to an increase in the number of low income households in India’s cities. Despite a vibrant housing market in India, decent housing in the formal sector is beyond the reach of the vast majority of these lower income households. Monitor Inclusive Markets conducted a study in 2006-7 for NHB (funded by FIRST Initiative and with active support by the World Bank), which found that even the cheapest houses in the market, were at best affordable2 for the top 15% of the urban population. Customers in the next 30% income seg- ment generally rented rooms in slums and low income neighborhoods.

They lived in poorly constructed houses with deplorable sanitary conditions (shared toilets, bad drainage and water- logging) and lacking basic neighborhood amenities (few common spaces or gardens, unsafe alleys, open gutters). Many families had tiny quarters, for which they paid high rent and yet remained at the mercy of their landlords. Moreover, these customers aspired to live in and could afford to buy houses between 250-400 square feet in suburban areas at current market prices, but there was virtually no supply of houses, and almost no access to mortgages from traditional financial institutions (even more the case for informal sector customers). 

Download Publication >>

 Attached Files:

Tags:  access to finance  impact investing  India  Sector publication 

Permalink | Comments (0)