Absence of an effective policy framework for Economically Weaker Section (EWS) and Lower Income Group (LIG) housing, which is compounded with rising land cost, spiralling construction costs, and inadequate availability and reach of micro-finance measures.
Long gestation period of six to eight years of housing projects, accentuated by multiple approvals to be obtained from multiple authorities in a two to three year time period.
Inadequate long-term funding across the project life cycle necessitating multiple rounds of funding for the same project increasing the cost of capital and time. Further, the funding is not available for acquiring of land from banking sources.
Multiple fees and taxesare charged across project stages which inflates construction cost by 30 to 35 per cent.
High urbanisation rate, coupled with high rate of migration from rural areas is stressing the limited urban infrastructure; sub-optimal usage of urban land (low Floor Space Index) has resulted in raising the cost per unit of built-up area.
