NITI Aayog Member Suggests Land Reforms for India's Affordable Housing Crisis
Former cabinet secretary and NITI Aayog member Rajeev Gauba proposed unlocking vacant homes and government land to address India's housing shortage. He advocated for state-level policy changes to facilitate affordable housing development.
Key takeaways
- NITI Aayog member Rajeev Gauba proposed unlocking nearly 10 million vacant urban homes and government land to address India's housing deficit.
- Gauba called for states to waive land-use change fees and exempt stamp duty for affordable housing transactions.
- He stated that land costs can account for 50-70% of housing project expenses, making affordable delivery difficult.
- The former cabinet secretary highlighted the need for rental housing solutions for urban workers and students.
- Delhi's TOD policy reserves 65% of FAR for affordable housing and aims to create 1.8 million units.
India's significant urban housing deficit could be mitigated by utilizing nearly 10 million vacant homes and repurposing underused land owned by government entities, according to former cabinet secretary and NITI Aayog member Rajeev Gauba. Speaking at a government event focused on affordable housing, Gauba identified land availability as a central challenge, noting that land costs can constitute 50-70% of a housing project's total expenditure.
Gauba urged state governments to eliminate fees for land-use changes and grant exemptions on stamp duty for transactions related to affordable housing. He highlighted the projected rise in India's urban population from 500 million to 900 million by 2050, alongside a current deficit of 50 to 70 million formal housing units in municipal areas. The high cost of land, including registration charges that can add 5-10% to transaction expenses, makes delivering affordable housing difficult, he stated.
He called upon central and state public sector undertakings (PSUs) and other government agencies to identify and make available their surplus, unutilized land for affordable housing projects. Gauba referenced South Korea's specific zoning policies and Singapore's public housing model, which prioritize locating housing near transit, employment centers, and social amenities.
Gauba also emphasized that increasing home ownership alone will not meet the diverse housing needs of the expanding urban workforce, particularly migrant laborers, industrial workers, students, and young professionals. He noted that these groups often require secure, affordable rental accommodations situated close to their workplaces.
Addressing the issue of vacant urban housing, Gauba pointed out that approximately 10 million units remain unoccupied due to owners' fears of tenant overstay and subsequent legal disputes. To counter this, he urged states to adopt the Model Tenancy Act and encouraged the Ministry of Housing and Urban Affairs (MoHUA) to incentivize states by linking their adherence to central scheme funding.
In a separate session, Manjula Paul, secretary of the Delhi Development Authority's (DDA) TOD committee, detailed Delhi's amended transit-oriented development (TOD) policy. This policy mandates that 65% of the floor area ratio (FAR) be allocated for affordable housing units under 100 square meters. The TOD policy applies to areas within 500 meters of metro corridors and major transit nodes like railway and RRTS stations, potentially opening up 207-210 sq km for planned development and an estimated 1.8 million affordable housing units. The policy aims to create sustainable and self-sufficient communities along metro corridors, with the remaining FAR designated for commercial use, neighborhood facilities, offices, and larger residences. Reduced parking requirements and a 40% ground coverage cap are implemented to discourage private vehicle use and promote public transportation.
Sources reviewed
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