The Informal Finance for Urban Housing Status and Prospects

Submitted by nanda on 24 July 2014 - 6:18pm

Public investments in housing are extremely low in India. It is estimated that these account for no more than 1.5 per cent of the total development investments. Public, institutional sector, however, provides only about 20-25 per cent of the total housing investments; the balance of 75-80 per cent is provided by the private sector, i.e. the household sector and other non- institutional sources. Apart from these very gross estimates, there is very little information in the country on the structure of the housing finance market, the relative weights and importance of the different sources, the terms and conditions at which housing finance is available from different sources, and the adequacy levels of housing investments. This study thus is a first systematic attempt in the country to fill in this information gap.