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Thousands of Low-Cost Homes Empty in India Despite Urban Shortage

by Reuters

   MUMBAI --

   Tens of thousands of low-cost homes are lying empty across India even
   as officials race to meet a deadline to provide housing for everyone by
   2022, which analysts say highlights critical shortcomings in government
   policy.

   About 164,000 low-cost homes built under previous plans are vacant,
   according to a housing ministry official.

   "There is a process to allot them, and that takes time," said the
   official, who asked not to be named, as he is not authorized to speak
   to the media. "We have been pushing state governments to allot these
   homes at the earliest, and we are focused on meeting the mission
   target."

   The government of Prime Minister Narendra Modi launched the Housing For
   All Mission in 2015, with a deadline of 2022. It aims to build 20
   million urban housing units and 30 million rural homes.

   More than 800,000 units have been completed, with about 2.8 million
   homes in various stages of construction, according to housing ministry
   data.

   But activists say the program, which also offers subsidized loans,
   bypasses homeless people who cannot afford the mortgage payments.

   "Those who really need these homes cannot afford them, and those who
   can afford them don't want them," said Harsh Mander, director of the
   Center for Equity Studies.

   "So the program doesn't serve its purpose. A far more effective
   solution would be affordable rental housing," he told Reuters.

   A quarter of India's urban population lives in informal housing
   including slums, according to social consultancy FSG.

   That number is set to rise as thousands of people leave their villages
   every day to seek better prospects in cities.

   An affordable home is typically about 250 square feet (23 square
   meters) in size, and can cost up to 1.2 million rupees ($17,500). It is
   usually located in the outskirts of the city where land is cheaper.

   "A significant number of them are in areas which lack the necessary
   support infrastructure -- most importantly transport," said Anuj Puri,
   chairman of Anarock Property Consultants.

   "One way to ensure these homes are occupied is to rapidly deploy the
   support infrastructure in these areas. These homes will deteriorate if
   they lie unoccupied much longer," he said.

   Freeing up surplus land owned by government agencies for affordable
   housing can also help, experts say.

   Earlier this year, India's top court said authorities should consider
   converting empty government properties in the cities into homeless
   shelters.

   India is not the only country confronting this issue: Thousands of
   homeless people in the Philippines have moved into empty government
   housing.