As part of its ongoing effort to facilitate the development of low income housing in India, the National Housing Bank had commissioned a study to explore market-based solution for low income households .

The 2010 study, now released as ‘Building Houses, Financing Homes’, conceived and commissioned by the NHB (and funded by the World Bank), and conducted by Monitor Inclusive Markets, provides strong evidence of the rapid growth of the low income housing market in urban India. There is growing interest among the market participants engaged in financing and construction for this market segment. The current study is a follow-up to a previous study conducted for NHB by Monitor in 2006-07 that showed the huge unmet need for good-quality, low-cost housing in urban areas for Low Income households.

The 2010 study also shows some results from these efforts. More than ever before, there is availability of housing finance for low-income and informal sector urban customers, with new players dedicated to serving these segments entering and expanding operations across India. The study provides ample proof that both the housing and the housing finance markets for low income customers are feasible and profitable.

The study was based on extensive, field-based research, management interviews and analysis of operations data. It included meetings with over 45 developers and 10 housing finance companies, and leveraged a vast network of stakeholders across India. The study provides market overviews of the low income housing and the housing finance system, and includes detailed case studies (including data on commercial feasibility, marketability and profitability) of developers and Housing Finance Companies serving the low-income customer base in urban areas.

The Report “Building Houses, Financing Homes” prepared by the Monitor Inclusive Markets (MIM) for National Housing Bank is uploaded and attached in the following link for the benefit of the Readers and all visitors to the SAHF site.