Low Cost Housing: Model 1

Projects on Government Land

NAPHDA to acquire parcels of government land on DC rates and deferred payment

70 % of usable land utilized for low cost housing and the remaining 30 % for medium end housing / commercial units (retail, eateries etc ) for the purpose of cross subsidy.

Land made available to builders on PPP model through a transparent bidding process for development / construction activities including marketing, documentation and hiring / managing contractors.

Builders to bring in 30% equity, house owners / beneficiaries to contribute 10 % and remaining 60 % through bank financing.

NAPHDA will provide following incentives / facilitation

1. Facilitation in approvals and NOCs

2. Coordination with respective Governments for provision of road, electricity, water and sanitation infrastructure up to the project site

3. Arrange the end buyers and mortgage facility from banks for low income group segment

4. 90% tax rebate on low cost housing

1. Developer will develop land and infrastructure through its equity

2. Developer will construct houses by arranging developer finance from the banks

3. At this stage banks will:

a) Use the PKR 300,000 unit subsidy, and

b) Credit facilities to the end users to pay off the developers

4. Financial working presented here pertain to houses only

5. Based on site location and local dynamics, low / mid rise (G + 3) apartments will also be considered for more efficient land utilization

6. Apartments may take 24 months for completion


Low Cost Housing: Model 2

Projects on Private Land

Participation by Private Sector Developers on Market Based Terms ‘Real Game Changer’

NAPHDA to facilitate builders in development of housing projects on private lands subject to certain conditions

1. Livability

2. Encumbrance free contiguous land with clear title

3. Availability of affordable services

4. Minimum 40% low cost housing out of which at least 20 % for NAPHDA arranged end buyers

Private Sector developers will be encouraged to participate in NAPHDA plans adopting all standards of NPHDA rules including Trust services

Developers to be prequalified by NAPHDA to ensure successful execution and eliminate delivery risk

NAPHDA will provide following incentives / facilitation

1. Facilitation in approvals and NOCs

2. Coordination with respective Governments for provision of road, electricity, water and sanitation infrastructure up to the project site

3. Arrange the end buyers and mortgage facility from banks for 20 % low income group segment

4. 90% tax rebate on low cost housing