How Can Delhi Address its Housing Shortage?

Edited by "Oineetom Ojah" | The Property Show on NDTV | May 11, 2017

A huge housing shortage is staring at the face of Delhi. From 1.8 crores, the city's population is projected to expand to 2.3 crore in the next four year. Is the city prepared to give a home to this additional population? Much of the housing load of Delhi has already been eased by the satellite cities and towns of Gurgaon, Noida and Greater Noida. But according to the Delhi Master plan – 2021, atleast 20 lakh new dwelling units will be required to accommodate this additional population.

Aware of the situation the Delhi Development Authority or DDA has over the years come out with its housing schemes. This time too, the Authority which is one of the very few government agencies (the other one is NBCC) responsible for building houses in Delhi, is all set to announce its housing scheme for 2017.

Under the scheme a total of 13,148 units in the janta, LIG, MIG, EHS and HIG categories will be up for sale. These flats are located in Dwarka, Rohini, Narela, Sarita Vihar and Jasola areas of Delhi. The cost of these flats range from Rs 12 lakh to Rs 1.40 crore.

Flats on offer under the scheme are the flats which were surrendered by people who found them to be too small than what was promised, or the neighbourhoods lacked proper basic amenities like roads and streetlights and adequate water supply.

The Urban Development ministry on its part has signed a memorandum of agreement with Delhi Urban Shelter Improvement Board (DUSIB) to enable implementation of the Urban Housing Mission and the central government's Pradhan Mantri Awas Yojana or housing for All by 2022.

Delhi Metro Rail Corporation too has pitched in to resolve the housing shortage of Delhi. DMRC is planning to construct 460 flats near Janakpuri metro station and 90 flats near Okhla metro station. The flats costing 60 lakh rupees to 1.20 crore rupees, should be ready by 2019 and will be allotted on the basis of a draw.

"What DDA is trying to do and now even DMRC is trying to build a few houses, is all good. What is happening and is being done is good but given the size of requirement this is too less. Limiting this exercise to only a few government agencies will not solve the problem. Private participation will help in a big way because the government agencies, they might have all the right intentions but they have limited capacities," Vamshi KK Nakirekanti, Executive Director & Head Valuations & Advisory Services, CBRE said.

"A lot of good things have been announced like the Land Pooling Policy and the Transit Oriented Development Policy along the metro lines. Government just needs to expedite the implementation of such policies so that land is released for affordable housing and private players can utilise the additional FAR under the TOD policy to create the much needed housing stock," Nakirekanti added.

The Delhi Master Plan – 2021 recommends that 54% of the total new dwelling units to be added upto 2021 should be for EWS and LIG category and remaining 46% of the new housing stock for other categories.

The Master Plan does talk about creating additional through re-development and upgradation of the existing areas, something that Sudhir Krishna, the Former Secretary in the Ministry of Urban Development recommends very strongly.

"One solution to Delhi's housing shortage is re-development. The Urban Development Ministry cleared the redevelopment proposal and we managed to get 10 times more and better properties in both East Kidwai Nagar and New Moti Bagh," Krishna said.

Let us not forget that 26,759 houses built under the Rajiv Awas Yojana and JNNURM programmes are lying vacant. These are lying vacant primarily because these houses were built in locations which are not easily accessible and the social and physical infrastructure has not developed yet.

Krishna said that the government has to provide for better and easier transport facilities, better connectivity and water and power supplies in all those locations where housing stock is being created.