New Delhi: With DDA scam fresh in her mind, Housing Minister Kumari Selja has said that the demand for affordable houses was corrupting the market and that there was an urgent need to correct the situation.
“The mad rush and unseemly consfusion for Housing in Delhi over DDA’s last MIG housing scheme underlines how shortage in supply are corrupting the market,” she said.
She suggested that in view of the current situation it is urgent to take measures to rectify the supply-demand position by ensuring better supply.
According to the estimate of the technical group constituted for assessment of the housing shortage at the end of the 10th Five-Year Plan, total housing shortage in the country is 24.71 million dwelling units and 98% of this shortage pertains to the economic weaker section and the low income group.
“The total housing requirement during the 11th Five-Year Plan will be 26.53 million,” said Selja.
Highlighting the high cost factor involved in buying houses, she said that it is only in this country that earnings of a life time are not sufficient to buy a house of one’s own.
Comparing with the situtation in other countries, she said that elsewhere, urban housing markets are controlled to enable a city dweller get a house for himself at the price which is 4 to 5 times higher of one’s annual income.
The Minister said that to reach this position, it will be necessary to reduce the cost of land for affordable housing and reduce the cost of construction besides reducing the profit on housing construction.
“However, it will be necessary to redress the adverse housing supply demand to reduce the profit on housing construction,” she added.