Archive for December, 2010

Currently, nearly 51% of the world lives in urban areas. Rapid urbanization is exacerbating the housing challenges of developing countries. In this issue of Beyond Profit, we feature failed housing solutions across three continents, analyze India’s urban housing challenge and discuss how the Commonwealth Games may affect housing prices in Delhi.

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This story originally appeared in our December 31, 2010 e-magazine. Click here to subscribe.

By 2030, more than half the world’s population will live in cities. How will they cope?

The world’s quick urbanization—even faster in developing countries—has put a strain on the cities expected to absorb the massive increase in residents.

The issue of urbanization is not new, but the UN estimates that by 2030, 60% of the world’s population will live in cities. Most of the growth will come from developing countries. For example, McKinsey Global Institute estimates 40% of India’s population will live in cities by 2030—a net increase of 250 million people.

Cities, both in developed and developing countries, have struggled with providing affordable housing for their residents. In an effort to learn from past mistakes, we’re profiling three failed solutions: Cabrini-Green in Chicago, slum redevelopment in Mumbai and Fuerte Apache in Buenos Aires. » Continue reading “Failed Solutions”

This story originally appeared in our December 31, 2010 e-magazine. Click here to subscribe.

Aden Van Noppen, on behalf of micro Home Solutions, spoke to Beyond Profit about an innovative home improvement product in India.

Aden Van Noppen (AVN) works on Strategic Planning and Partnership Management at mHS.

Tell us about your organization.

AVN: micro Home Solutions (mHS) is a for-profit social enterprise that creates solutions for the 40 million people without access to adequate housing in India. mHS was founded in 2009 by Rakhi Mehra and Marco Ferrarioas an interdisciplinary social enterprise that links architectural, financial and social approaches to offer a portfolio of affordable housing options to the urban poor. » Continue reading “Talk About Homes”

This story originally appeared in our December 31, 2010 e-magazine. Click here to subscribe.

In Pakistan, the young and poor struggle to afford a home of their own. A successful low-cost initiative offers a solution.

By Usha Ganesh from Intellecap

With increasing rural-urban migration and the relatively young population of Pakistan, demand for low- income housing is expected to grow to alarming proportions. And yet, this demographic may find it impossible to invest in owning a home in a major urban area.  Nearly 30% of Pakistan’s population lives in rented homes. As per a monthly cash flow presented in Acumen Fund’s Working Paper on Property Rights, families with an average monthly income of US$118 (Rs 5,310) end up saving only US$12. With an average plot costing US$4946, it would take over 30 years to meet this cost.

Saiban, a Pakistan-based NGO, has a successful model with its Khuda Ki Basti-4 (KKB-4) initiative, currently being implemented near Lahore. It engaged the House Building Finance Corporation (HBFC) to offer mortgage loans to the poor. One of the few developers to apply for legal permits for construction from the local Tehsil Municipal Corporation, the Saiban team had to work very hard to obtain the permits and raise capital for actual construction. » Continue reading “Pakistan’s Low-Cost Living”

This story originally appeared in our December 31, 2010 e-magazine. Click here to subscribe.

By the Numbers:

In the last decade, 22 million people have moved out of slums annually. Although progress has been made, a report by UN Habitat presents the numbers behind the growing slum problem.

• 50.6%: The percentage of the world living in urban areas.

• 227m: The number of people worldwide who have moved out of slums since 2000.

• 827.6m: The 2010 estimate of the number of slum-dwellers worldwide.

• 55m: The number of new slum-dwellers worldwide since 2000.

• 6m: The projected annual growth rate of the slum population. » Continue reading “Data – Raise the Roof”

This story originally appeared in our December 31, 2010 e-magazine. Click here to subscribe.

These five affordable housing projects are giving low-income households the chance to live in 200-700 ft² apartments at an average monthly payment of US$90.

Tanaji Malusare City, Matheran Realty

Tanaji Mulusare City (TMC), located in the suburb of Karjat in Mumbai, provides 15,000 affordable apartments over a 100 acre plot. The units range from 156 ft²to 397 ft², and are approximately priced between US$4,500 to US$16,500. TMC has earmarked space for amenities like schools and hospitals, and has social infrastructure like a fire brigade and police station. It is one of the largest affordable housing developments in India today.

Photo credit: Flickr user Ahron de Leeuw

Shubh Griha, Tata Housing

Shubh Griha is Tata Housing’s flagship plan to bring affordable housing to the bottom of the pyramid (BoP). With two developments in the Mumbai suburbs, it is a great example of well-planned affordable housing. It offers 70% open spaces, eco-friendly design, playground, gym and jogging track. The units range from 283ft²to 489 ft², and are priced between US$8,500 to US$15,000.

Photo credit: Flickr user Carol Mitchell

Janadhaar Shubha, Janadhaar Constructions

Janaadhar Shubhais being developed on an 11.5 acre plot in the outskirts of Bengaluru city. The township consist of 1140 apartments that range from 400ft²to 615 ft², with one-bedroom houses priced underUS$11,500. The facilities provided include a primary school and play area. Janaadhar discourages affluent buyers according to promoter Ramesh Ramanathan.

Photo credit: Flickr user orange tuesday

Navjivan, Atmiya Developers Pvt Ltd

Navjivan consists of 400 affordable homes being built in Vatva, Ahmedabad, which range from studio to two-bedroom apartments, starting at US$6,200.The project is located in an existing residential area with access to schools, markets, basic healthcare facilities and bus transport. It is also one of the few affordable housing projects to incorporate sustainability elements in its design.

Photo credit: Flickr user Ahron de Leeuw

Ashray Homes, Value Realtors Pvt Ltd

Ashray is an affordable housing project spread over 8.5 acres in Lodhana, Rewari, Haryana. It offers a choice between 280 ft² and 450 ft² standalone homes approximately priced at US$6,400 and US$10,900, respectively. A unique aspect of this project is that home owners have the option of adding an extra floor to their home in the future. The project will have 600 homes with facilities like water harvesting, a school, hospital, park as well as a daily needs store.

Photo credit: Flickr user utpal

This story originally appeared in our December 31, 2010 e-magazine. Click here to subscribe.

How could  the Commonwealth Games affect housing in New Delhi?

Earlier this year, New Delhi, which overtook Mumbai as India’s largest city this year as well, hosted the 2010 Commonwealth Games. While many are hopeful about the economic effects of the games, other issues could arise. One of those includes housing.

The Games Organizing Committee estimated that the overall impact on India’s GDP will be US$4.94bn spread over the years 2008-2012. (For comparison, the 2002 Manchester Games created US $3.4bn and the 2006 Melbourne Games US $1.6bn.) Job creation for the same period is estimated at 2.47 m people. » Continue reading “Post Commonwealth Housing”

This story originally appeared in our December 31, 2010 e-magazine. Click here to subscribe.

A recent working paper by the World Bank points out the inefficiencies in India’s housing policies and suggests improvements.

By Payal Agarwal from Intellecap

India’s slum-dwelling population has risen from 27.9m in 1981 to 61.8m in 2001, and now exceeds the entire population of Britain. By 2030, 70% of Indian jobs will be in cities and it is projected that 590m Indians will live in them.

A paper entitled Working with the Market: A New Approach to Reducing Urban Slums in India examines the cause of soaring land prices and slum populations, and suggests corrective measures. To prove that faulty government policies and not migration has led to precarious living conditions for the urban poor, it cites the example of Vietnam’s cities that are growing at twice the rate of India’s and have lower incidence of slums. » Continue reading “The Urban Housing Challenge”

d.light has long been in the social enterprise spotlight and was recently named a “start-up to watch” by Forbes India. Beyond Profit was able to catch up with Managing Director Mandeep Singh at the Rural Marketing Congress India 2010, held earlier this month.

Beyond Profit: d.light seems to be the poster child for social enterprise. Does that add pressure?

Mandeep Singh: Not exactly. Doesn’t add any pressure. At the end of the day, you have an agenda. You got to do that. You got to be patient. » Continue reading “Growing Up d.light”

On Thursday, December 16^th, the Centre for Social Enterprise & Leadership at the SP Jain Institute of Management and Research (SPJIMR) in Mumbai launched the Social Venture Challenge (SVC). At the SPJIMR auditorium, business students, professors and other interested attendees gathered to witness a ceremonial candle-lighting, and to hear about the SVC and social entrepreneurship in Mumbai.

The SVC is a first: it is a social business plan competition to better Mumbai. Already bursting at its seams, the megacity Mumbai is projected to become the world’s most populous city by 2015. The city faces steep challenges to support the needs of its populace. » Continue reading “The Social Venture Challenge Mumbai”