Land reforms could boost affordable housing: NITI Aayog’s Gauba
India’s urban housing shortage could be tackled by unlocking nearly 10 million vacant homes and putting excess, utilising vacant land held by public sector undertakings (PSUs) and other government agencies, former cabinet secretary and NITI Aayog member Rajeev Gauba said on Tuesday at a government event on affordable housing
Former cabinet secretary Rajeev Gauba, a member of NITI Aayog, suggested that India's urban housing shortage could be addressed by unlocking nearly 10 million vacant homes and utilizing excess land held by public sector undertakings (PSUs) and government agencies. Gauba emphasized that land availability is a critical factor, accounting for 50-70% of the total housing project cost.
He called for states to waive land-use change fees and exempt stamp duty for land and transactions related to affordable housing. India's urban population is expected to grow from 500 million to nearly 900 million by 2050, with a projected deficit of 50-70 million formal housing units in municipal areas. Gauba believed that the high cost of land was a significant barrier to delivering affordable housing, with registration charges alone adding 5-10% to transaction costs.
He encouraged state and central PSUs, along with other government entities, to identify and recycle their surplus, unutilized landholdings for affordable housing. Gauba also highlighted South Korea's dedicated zoning and Singapore's public housing as examples of approaches that locate housing near transit networks, job centers, and social infrastructure.
However, Gauba stressed that increasing home ownership alone would not address the housing needs of a growing urban workforce. He pointed out that migrant workers, industrial laborers, students, and young professionals often require secure and affordable rental housing close to workplaces. Gauba proposed that states adopt the Model Tenancy Act to tackle these concerns and urged the Ministry of Housing and Urban Affairs (MoHUA) to encourage states to adopt it by linking adherence to funding for central schemes.
Meanwhile, in Delhi, the amended transit-oriented development (TOD) policy will reserve 65% of the floor area ratio (FAR) for affordable housing, reduce parking provisions, and cap ground coverage at 40% to discourage private vehicle use. The policy aims to create around 18 lakh affordable housing dwelling units within 207-210 sq km of planned development along metro corridors and other connectivity nodes.
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