How to address the current and future challenges in housing sector

financialexpress.com:

Rapid urbanization and migration have been driving the growth of cities in India, attracting people with the promise of better employment, living standards, educational facilities, and infrastructure. While this trend has brought numerous benefits, such as an increase in the skilled workforce and technological advancements, the negative impact of migration and urbanisation cannot be ignored. The housing shortage in our cities has reached alarming levels, necessitating urgent action and futuristic planning to address the issue.

According to a World Bank report, almost 65.5 million Indians live in urban slums, highlighting the lack of affordable housing options for the millions migrating to cities without a place to reside. The existing slums, particularly on the outskirts of major cities, present significant challenges in terms of infrastructure, basic services, land, housing, and the environment. The scenario calls for a regular supply of ready-to-move-in affordable housing to meet the growing demand.

India’s urban population has been growing at a compound annual growth rate (CAGR) of 7.8 percent from 2012-2021, resulting in an increase in the urbanisation rate to 35.39 percent from 31.28 percent. With over 498 million urban dwellers out of a population of 1.42 billion, and more than 10 million people being added to urban areas every year, the need for housing is critical.

The lower income group (LIG) and economically weaker sections (EWS) of society are the most affected by this housing shortage, with a shortfall of 29 million units. The shift towards nuclear families, with 56 percent of urban households having four or fewer members, further increases the demand for housing in urban areas.

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