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
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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.