Emerging Land Models for Affordable Housing -

Abstract

The global housing affordability crisis presents a complex challenge influenced by factors such as land prices, supply constraints, and regulatory dynamics. This study delves into the evolution of Land Supply Models for affordable housing provision in India, with a focus on the Delhi Land Pooling Policy. By analysing existing literature and policy frameworks, the study highlights how limited land supply, coupled with zoning regulations and infrastructure demands, contributes to inflated land values and housing prices, particularly affecting low and middleincome households. There is a critical need for a comprehensive examination and reform of land supply mechanisms, considering evolving government roles and policies. Examining existing Land Supply Mechanisms in India reveals complexities in land availability, cost dynamics, government policies, and stakeholder roles. Urban areas, facing high demand, encounter significant obstacles due to escalating land costs, prompting states to explore new models for assembling land for affordable housing. Over the past decade, there has been a notable shift in the roles of the state and private sector in land assembly. Government, traditionally a provider of affordable housing, is now evolving policies to include mandatory affordable housing components within land governance frameworks, while engaging the private sector to address demand, with the government acting as an enabler and regulator. Various policies and schemes, such as TP Schemes, Pooling Policies, and Affordable Housing Policies, exemplify this shift by adopting a Private landbased Incentivized Subsidized Housing provision approach. By integrating affordable housing components into land governance policies and engaging the private sector, opportunities can be explored to enhance land supply efficiency, project feasibility, and overall affordability. The implementation of the Delhi Land Pooling Policy serves as a case study for evaluating the efficiency and effectiveness of this shift towards providing affordable housing. Allowing private landowners to pool their land for development, the policy illustrates the interplay between government regulations, private sector Emerging Land Models for Affordable Housing – A case of Delhi Land Pooling Policy viii involvement, and affordable housing provision. The study focuses on the policy's feasibility through meticulous examination of its financial aspects, aiming to bolster the supply of affordable housing within the affordable segment. Scenario analysis demonstrates the financial feasibility of the Delhi Land Pooling Policy with current norms and regulations. However, amidst the competitiveness of demand and supply in the broader NCR domain, various scenarios warrant scrutiny. This analysis uncovers potential scenarios that offer equitable returns and profits, benefiting both developer entities and the affordable segment. Despite the policy's financial feasibility and promise of good returns, it has not seen implementation on the ground. Major issues include the lack of trunk infrastructure provided by DDA, leading to hesitation among developers to commence land development. Trust issues among consortium members and landowners, driven by lack of transparency and personal interests, also hinder progress. Additionally, landowners and developers are critical of high EDC & IDC prices, which they find burdensome. The significant price dichotomy between EWS units under DDA and DE exacerbates the problem, enabling beneficiaries to sell allotted units for higher prices. Concerns also arise regarding LIG segment units exceeding affordability limits and landowners' differing development targets conflicting with sector plan controls of FAR use and density distribution. While the research concludes by acknowledging the financial efficiency of the Delhi Land Pooling Policy and its potential to supply more affordable housing, it also highlights significant shortcomings requiring detailed study. Addressing these challenges through emerging land models is essential to tackle the affordable housing challenge effectively.