Informal developers build 90% of low cost homes: Report
90% of the supply of affordable homes in India is coming from small and informal developers. Several large and medium size builders still remain unsuccessful in providing homes to low income customers, said a report by consulting firm FSG and NHB.
The report ‘State of Low-income Housing Finance Market’ released by industry body Federation of Indian Chambers of Commerce and Industry (FICCI) said the loan books of affordable housing finance companies in India have grown manifold in a span of five years. From a combined loan book of close to Rs1,000crore in March 2013, it has shot up to over Rs27,000 crore at an average loan ticket size of Rs9.3 lakh and “facilitated the ownership of more than 230,000 affordable homes.
The report said urban household living in slums could provide an opportunity for housing companies to expand their reach as slum dwellers comprise 17% of the urban population. In total around 14 million urban households live in slums with poor living conditions. The estimated market opportunity for housing loans in notified slums stands at around Rs23,000crore.