Urban affordable and low cost housing: Strategic grouping analysis

Abstract

Housing is a basic necessity which a person must be able to avail. It forms a part of ‘Roti Kapda Makan’, the three things we are told are enough to promote satisfaction in life. The standard definition of Affordable housing is that which a household/individual can afford on an instalment basis with median income in a particular city. This definition is highly dependent on the target population being addressed. There is low cost housing and then there is affordable housing. Low cost housing is typically state funded and while affordable housing aspires to be self-funded. A distinction between low cost housing and affordable housing can be seen in this analysis provided in the KPMG report – ‘Affordable Housing – A key growth driver in the real estate sector’ . In this report we shall be treating low cost housing and affordable housing as two separate markets.