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Housing in India

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Last Updated: 19 January 2021

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General | Latest Info

Good quality, secure housing is one of the major end goals for many societies aiming to ease global poverty and ensure provision of basic needs amongst economically backward groups. Out of 7. 8 billion of the world's population, 150 million people are homeless and 1. 6 billion lack adequate housing. In fact, India alone accounts for 1. 8 million people in the world are homeless. Data shows that 78 million people in the country do not meet their needs for decent housing. Furthermore, 52 % of the countrys homeless live in urban areas, which emphasizes the severity of the problem. With 17 % of world slum dwellers living in India, government reveal that the countrys slum population now exceeds the entire population of Britain. Here is some information about housing conditions in India.

* Please keep in mind that all text is machine-generated, we do not bear any responsibility, and you should always get advice from professionals before taking any actions.

* Please keep in mind that all text is machine-generated, we do not bear any responsibility, and you should always get advice from professionals before taking any actions

Cities

Table

CityAverage Monthly Rent (INR)Average EMI (INR)UTB Ratio
Indore11,66025,8850.450
Jaipur14,77136,9740.400
Ahmedabad15,44639,1060.395
Kochi15,00542,0270.357
Hyderabad16,79542,9950.391
Delhi23,26475,6650.307
Chennai21,01868,9980.305
Mumbai44,0411,86,6110.236

It beg question: How pricey is the Indian Urban rental market today, and how does affordability vary across major cities? Mint analysis of rental housing data across India's top six metros shows that Hyderabad has the cheapest rents on average and Mumbai has the most expensive rents. These values are for a 650 sqft apartment, the size of one bedroom-hall-kitchen apartment. For this analysis, we considered over 70 000 rental listings from 99acres. Com, real estate portal. Only rental values within municipal limits of six largest metros in India have been considered here. Average rent per sqft across City wards was used to derive rental values of 650 sqft apartment in each ward. Because of the nature of online listings, this analysis excludes data from neighbourhoods with largely informal rental markets such as the Old City in Hyderabad and wards with very few property listings. Unsurprisingly, across six cities, central parts are most expensive, and the cheapest rents are in areas farthest from city centres. Mumbai, on account of its unique geography and broken property market, has rental listings that are far more expensive compared to other metros. The most expensive wards across six cities are all in Mumbai-ward, d ward and E ward. The 10 cheapest wards across cities are all in Hyderabad.


Urban Rental Housing

Despite the lack of strong policy framework and regressive rent laws, Indian housing market has responded to demand for cost-effective rental housing, especially for the young, middle-class working population, giving rise to co-living spaces. In 2018, millennials constitute around 42 percent of the workforce in India across top seven cities and are expected to grow at a 6 percent compound annual growth rate by 2023.] Moreover, 40 percent of the millennial workforce are migrants who have limited budgets, but rate flexibility and convenience on top. The Co-living market is expected to reach INR 1 trillion in the next five years. The basic concept of co-living is not unknown in India, with many cities and towns already having paying guest accommodation and other similar housing models. In current avatar, private sector is catering to the needs of young professionals who prefer share rental accommodation at a fraction of the cost of independent rentals. Co-living offers flexible lease terms, with low costs for lessors and service providers as well. The Co-living rental housing market is expected to drive the residential real estate sector in coming years, and several innovators and real estate companies have entered the segment. But India needs robust regulatory infrastructure that systematise and aids the growth of the sector. While there are key challenges, such as creation of relevant supply for co-living operations, it is expected that the market will respond to development of build-to-suit products. In addition to development of a regulatory framework for the sector, clarity over approvals and licenses for co-living operators, and fiscal and non-fiscal incentives for developers and operators will go a long way in shaping the co-living market.

* Please keep in mind that all text is machine-generated, we do not bear any responsibility, and you should always get advice from professionals before taking any actions.

* Please keep in mind that all text is machine-generated, we do not bear any responsibility, and you should always get advice from professionals before taking any actions

Corruption

Top officials of Indian banks, lenders and financial firms have been accused of taking bribes to grant corporate loans. The CBI, India's federal investigative agency, arrested eight people in November, including the chief executive of LIC Housing Finance and senior officials at state-run Central Bank of India, Punjab National Bank and Bank of India. Bribes were allegedly paid by private finance firm Money Matters Financial Services, which acts as mediator and facilitator for loan beneficiaries, CBI say. Three Money Matters executives, including the managing director, have been arrested for offering bribes. Several leading Indian firms were named in court documents filed by CBI, including wind turbine maker Suzlon Energy, infrastructure company HCCs Lavasa unit and real estate firm DB Realty. All three have denied any wrongdoing.

* Please keep in mind that all text is machine-generated, we do not bear any responsibility, and you should always get advice from professionals before taking any actions.

* Please keep in mind that all text is machine-generated, we do not bear any responsibility, and you should always get advice from professionals before taking any actions

Indian property bubble

Price growth in Q4 2020: City-wise break-up

CityAverage price as on December 31, 2020 (in Rs per sq ft)Annual growth in %
Ahmedabad3,2137
Bangalore5,3422
Chennai5,2282
Hyderabad5,6025
Kolkata4,2022
MMR9,448No change
NCR4,268No change
Pune5,0774
National average6,042No change

The Indian property bubble refers to concern expressed by some Indian economists that the housing market in some major Indian cities may be in a bubble. The real estate sector is thought to be collapsing due to increasing costs of financing. Real estate projects in India take a long time to complete due to complicated and corrupt regulatory mechanism. Several of India's publicly traded real estate firms are in debt. The inventory of unsold real estate assets is growing and it is expected the market will undergo price corrections. According to Mumbai-base market research agency, Liases Foras, 30 % of transactions in the real estate sector are done with black money. In September 2019, India announced that it will provide 1. 41 billion of funds to boost affordable and middle income housing, as part of measures designed to aid India's slowing economy.

* Please keep in mind that all text is machine-generated, we do not bear any responsibility, and you should always get advice from professionals before taking any actions.

Property prices in Indias eight prime residential markets

CityAverage rate per sq ft as on September 2020Annual change
AhmedabadRs 3,1516%
BengaluruRs 5,3102%
ChennaiRs 5,2402%
HyderabadRs 5,5936%
KolkataRs 4,1581%
MMRRs 9,4651%
NCRRs 4,232-1%
PuneRs 4,9702%
National averageRs 6,0661%
* Please keep in mind that all text is machine-generated, we do not bear any responsibility, and you should always get advice from professionals before taking any actions

Outsourcing to India? BEWARE!

India is one of the most demanded countries in the field of IT outsourcing. This is primarily due to: low prices for developer services: after all, India is a third-world country with respective rates and prices; breadth of services provide: average annual growth rate of IT enterprises has been steadily going over 7 % in recent years; flexibility: focus on international market more than on local environment, Indians try to adapt their Software Development approaches to remote interaction. However, buying into these seemingly advantageous factors often leads product owners to profit and reputation losses. Lets figure out why outsource to India in the first place and why it is mostly better to steer clear of this outsourcing location.

* Please keep in mind that all text is machine-generated, we do not bear any responsibility, and you should always get advice from professionals before taking any actions.

* Please keep in mind that all text is machine-generated, we do not bear any responsibility, and you should always get advice from professionals before taking any actions

Household Expenses and Living Conditions

India is very cheap relative to many other nations. The Cost of Living depends on what youre doing and where youre living in India. Basic living expenses, such as food, water and housing, cost you between 15000 and 20000 INR. Depending on cost, this can result in higher or lower number. India accepts only the national currency, rupees, and the first thing expats and visitors are searching for in India is currency exchange. Not so many ATMs are available in streets of small towns in India, but you will always be able to withdraw money in some major cities like Mumbai, Pune, Bangalore, Delhi, Kolkata, Jaipur, Hyderabad etc. The good news is that you can pay by credit card in some stores, restaurants or hotels in major cities. Secondly, living here as a tourist could be expensive. Since youre going to eat local food and do a tremendous amount of work, just not as much as locals do. It s important to keep that in mind if you think our numbers are low. The cost of living in India is much higher than in the rest of the world.

* Please keep in mind that all text is machine-generated, we do not bear any responsibility, and you should always get advice from professionals before taking any actions.

* Please keep in mind that all text is machine-generated, we do not bear any responsibility, and you should always get advice from professionals before taking any actions

Large Households

A year ago, Union cabinet gave its approval to the Housing for all by 2022 Mission with special focus on providing affordable housing to economically weaker sections in urban areas. While it is still early days to assess schemes ' progress, what exactly is the housing situation in India? Census data on housing amenities and analysis of National Sample Survey Organisations unit-level data in a recent paper by Arjun Kumar in Economic and Political Weekly can be used to generate some stylised facts about the India housing sector. According to the 2011 Census, there are 246. 7 million households in India. Of these, 68 % are rural households and 32 % are urban households. Data suggest that the majority of households live in owned houses in both rural and urban areas. Overall, 213. 5 million, or around 86 % of all households, were living in owned houses. This is an increase compared to 2001 Census figures.


Urban Rental Housing

Although NURHP makes several progressive recommendations, it also lacks on many fronts. First, central governments ' low financial commitment will mean tremendous difficulties in housing the urban poor. Indias major cities have the highest demand for rental housing, but rents are exorbitant. In Mumbai, for instance, 2019 annual ready reckoner put the average cost of one square metre of land at over INR 1. 5 lakh. Since the introduction of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act in 2013, double ARR must be paid to landowner, putting the cost of land upwards of INR 3 lakh. If a 30 square metre rental unit is build, with a floor space index of three, land cost will be INR 30 lakh. If construction cost is add, and even if all other costs are ignore, total base cost will be around INR 3. 5 lakh. Further, if the general rule for evaluating rent apply, tenant will need to pay about INR 35 000 per month. This is an unaffordable sum for low-income families. Monthly housing costs should ideally not exceed 30 percent of familys gross monthly income. How can urban rental housing be made more affordable for economically weaker sections and low-income groups? Central and state governments must bear the cost of land or offer public-own land for low-cost rental housing. Additionally, governments should incentivise the private sector to invest in low-cost housing with fair profitability.

* Please keep in mind that all text is machine-generated, we do not bear any responsibility, and you should always get advice from professionals before taking any actions.

* Please keep in mind that all text is machine-generated, we do not bear any responsibility, and you should always get advice from professionals before taking any actions

Mud Floors and Walls Common

In 2001, nearly 110 million Indian households lived in dwellings with mud floor, 72 Percent of rural households and 18 percent of urban households. This represents an improvement over the 1991 Census in which 79 Percent of Rural Households and 27 Percent of urban households lived on mud floors. Urban Houses are, as one might expect, more solidly constructed and more permanent. The Census also lists 50 percent of houses as being in good condition, 44 percent as livable, and 6 percent as dilapidated. The figures are somewhat better in urban areas than in rural areas. The overall picture these data show is certainly at odds with the Western view of the middle class. And, Census data do not capture the small size of most houses or their vulnerability to elements. Table 1 Percent of Households in India Living in Houses With Construction Materials, 2001

* Please keep in mind that all text is machine-generated, we do not bear any responsibility, and you should always get advice from professionals before taking any actions.

* Please keep in mind that all text is machine-generated, we do not bear any responsibility, and you should always get advice from professionals before taking any actions

Sources

* Please keep in mind that all text is machine-generated, we do not bear any responsibility, and you should always get advice from professionals before taking any actions.

* Please keep in mind that all text is machine-generated, we do not bear any responsibility, and you should always get advice from professionals before taking any actions

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