The United Nations report – ‘World Urbanisation Projects’ prepared by the United Nations Department of Economic and Social Affairs states that there will be rapid growth in India, China and Nigeria.
In the report, Mumbai is listed as the sixth most populous city with a population of 21 million, which is the same as Sao Paulo (Brazil) and Mexico City (Mexico). However, it is tailing Shanghai (China) with 23 million citizens.
Presently, 54% of global population resides in urban areas, which is expected to increase to 66% by the year 2050.
Rajesh Krishnan, Managing Director of Brick Eagle said, “The Reserve Bank of India’s recent policy announcements on affordable housing are an excellent fillip to the housing sector. But by giving such benefits to any house priced under Rs 50 lakh, they have ensured that the Middle Income Group homes will be as protected as Low Income Group and Economically Weaker Section homes, thus giving no incentive to builders to build affordable housing.”
According to data available with Brick Eagle, a financial services firm for affordable housing in India, the demand for affordable housing in India is around 18.78 million, but only 30,000 units were constructed in between June 2011 and January 2013.
This shows that there is demand for more affordable housing projects all over India with each unit priced less than Rs 20 lakh. This is especially true in the Mumbai Metropolitan Region in the far northern edges of Mumbai such as Boisar, or the eastern suburbs like Thane, Kasara, Shahapur and the eastern Mumbai district areas of Khopoli, Karjat, Vangani, Neral and Shelu.
Despite setback in figures, Mumbai has led the sector, with over 15 projects targeting this affordable segment. Karjat, Palghar and Boisar in Mumbai have multiple on-going projects catering to low income groups. In Karjat of eastern Mumbai district alone there are around 80 such projects.