Estimated Volume, based on preliminary survey/ planning

Development Perspective

NAPHDA seeks to develop quality housing at affordable price for low to medium income groups in urban, peri-urban and rural areas. Clusters of housing complexes will be created in a progressive manner, all over the Country. These housing colonies will have a mix of housing units for various income groups and will foster social cohesion. The planned breakdown of estimated volume, based on preliminary survey / planning, is as under:

Area Units Volume
Urban Centres 2 Million Housing units 40%
Peri-Urban Areas 1 Million Housing units 20%
Rural Areas 2 Million Housing units 40%
Total 5 Million Housing units 100%

Housing in Urban Areas

Mega housing colonies comprising apartment buildings will be constructed all across the country in accordance with the demand in various cities.

The urban housing colonies will be developed at carefully selected locations within / around the urban centres that are adequately linked to communication arteries to facilitate daily commutation of residents to respective workplaces.

Multiple colonies may be developed in the bigger cities depending on and in line with the demand, without causing saturation.

The colonies will have mixed clusters of low-cost / medium end residential apartments for allotment to members through ballot, high-end residential apartments for sale on commercial rates, variety of commercial units such as shops, restaurants, malls etcetera and amenities such as education institutions, hospitals / healthcare centres, parks, community centres and mosques etcetera.

These, colonies will thus be self-sufficient housing enclaves within a city, compliant to contemporary housing and environmental standards.

Housing in Peri-Urban Areas

Development of peri-urban housing colonies will generally be similar to urban centres, however the design and configuration of apartment blocks and business plan may differ for one area to the other.

Housing in Rural Areas

While developing rural housing complexes, an entirely different approach will be adopted. The nuances of village life and housing preferences of respective regions would be given due consideration. One to two storied semidetached houses will be constructed on an area of 650 - 900 square feet with basic amenities (water, electricity, sewerage system). These houses will essentially be made for residents of respective villages / adjoining localities.

Business Concept

1. NAPHDA’s business concept is based on Public Private Partnership model, offering incentives to Private Sector investors in participatory mode

2. Government’s noble intent of providing housing to the underserved at affordable price can only be realized by adopting all possible measures to limit / cap the price of houses for low / medium income members.

3. This will be achieved, on one hand, through economical design specifications with optimal use of covered area and controlled construction cost, while on the other hand, a significant cross-subsidy will constitute an essential feature of the financial model.

4. The cross-subsidy will be planned in urban / peri-urban areas for the low-income group. For the medium income group, the houses will be allotted on cost basis, without any profit. The model of cross-subsidy cannot be created in rural areas and housing units there will have to be allotted on cost basis which will, however, be significantly less than urban centres / peri-urban areas.

5. NAPHDA will have the overarching role of a Partner and Client. Besides provision of developed land for most projects, it will also oversee the design of the low / medium cost houses and ensure the quality of construction.

6. This business model has been conceived as under:

Land: In most cases, procurement, town planning and infrastructure development of land will be the responsibility of NAPHDA. It will acquire land commercially and also seek allotment of Government lands, where possible. In some cases, land offered as donation and / or equity in a Joint Venture may also be used.

Land Use in Urban / Peri-Urban Housing Colonies: The land use plan of housing colonies will comply with established standards of infrastructure / town planning for housing schemes. Substantial area will be reserved for construction of housing units for low and medium income members. An appropriate percentage of land will be apportioned to the high-end housing units, about 5% to commercial areas and 2-5% to amenities.

Design of Residential Apartments in Urban / Peri-Urban Areas: NAPHDA will provide the design of low and medium cost apartments. However, the design and architecture of high-end apartment buildings will be decided in consultation with the respective investor, to whom assigned. Nevertheless, the limits of covered area laid down by NAPHDA will be followed.

There may be some variations in the abovementioned business, e.g. construction and handing over of low-cost houses as a Corporate Social Responsibility by corporate entities or provision of developed / un-developed land by some investor as equity. Such proposals will be duly considered as per the feasibility and financial model of respective project.

Business Plan

Urban / Peri-Urban Areas

Expression of Interest will be invited from the interested investors for each housing colony project.

The cost of construction of low and medium cost housing units will be laid down by NAPHDA along with design documents and bills of quantities (BOQs).

NAPHDA will lay down the minimum and maximum number of housing units that can be constructed by an investor in a given project. The construction period for each project will be 18 – 24 months. The investor will express the interest for desired quantity of housing units.

NAPHDA will define the standard construction cost of low-cost and medium cost houses. NAPHDA will however pay the subsidized cost for low-cost houses and actual cost for the medium cost houses to the investor.

The investor will be offered a business package, based on a financial model, for recoupment of balance cost of subsidy and sharing of profit. This will include the space for construction and sale of high-end residential apartments on commercial rates and share in commercial units.

Rural Areas

NAPHDA will engage reputed contractors for construction of houses. The option of micro-financing for owner driven construction will also be explored.