Evaluate the role of urban planning policies in addressing the housing crisis in Indian cities. What policy changes are necessary to ensure that affordable housing remains a priority for developers and investors?

Question

PocketIAS · Accepted Answer

Role of Urban Planning Policies in Housing

Land Use and Zoning Regulations: Urban planning policies determine land allocation, density norms, and permissible land use. Restrictive zoning and high FSI (Floor Space Index) limits often constrain the supply of affordable housing, pushing low-income households into informal settlements.

Infrastructure and Connectivity: Policies integrating housing with transport, water, sanitation, and electricity infrastructure influence the viability of affordable housing projects. Well-planned urban corridors reduce commuting costs and enhance the attractiveness of affordable housing for developers and residents.

Incentives and Regulatory Frameworks: Schemes like PM Awas Yojana provide subsidies and credit-linked incentives to developers and buyers. However, delays in approvals, complex land acquisition processes, and inadequate fiscal incentives limit private sector participation.

Policy Changes to Promote Affordable Housing

Streamlining Approvals and Regulations: Simplifying land acquisition, building approvals, and compliance processes under a single-window system can reduce costs and encourage developer participation.

Fiscal and Financial Incentives: Tax breaks, interest subvention, and viability gap funding for projects targeting households below ₹50 lakh increase financial attractiveness for developers.

Promoting Rental and Mixed-Income Models: Encouraging rental housing, public-private partnerships, and inclusionary zoning can ensure diverse housing options and reduce investment risks.

Strengthening Rental and Real Estate Markets: Developing efficient rental markets and securitised instruments for housing finance improves liquidity and long-term investor confidence.

Targeted urban planning reforms, combined with fiscal and regulatory support, can ensure affordable housing remains viable, addressing both social equity and urban economic efficiency.

✍️ Practice Mode

Write. Evaluate. Improve. Repeat.

The model answer is ready.

Comments (0)