What’s the role for buy-to-let home buyers in India’s urban #housing markets? #rentals

Several questions on housing have been plaguing me. And because my current work engages with housing only tangentially, I find myself background thinking a lot of issues related to housing security, real estate markets and the nature of home ownership. The role of rentals in the housing market is something I’m rather excited about. So today’s question draws from the debate on in the UK about the growing role of buy-to-let home buyers. What’s the scenario in India?

We do know that speculative property purchases are on the rise in India. Notwithstanding the current slowdown, the post-liberalisation era has meant that favorable home loans terms and rising incomes have combined to put real estate into that sweet spot; real estate purchases have become a normal component in the portfolio of salaried urban Indians. Most of these investments are in second (or third) homes. Yet, there is the rise in the rental housing supply is not proportionate and we do know that a large number of houses in cities are lying locked up (ref: 2012 MoHUPA report on housing, which recommended push for rental housing).

Is there a larger role for buy-to-let home buyers in the Indian context?

Unlike the UK, Indians cannot avail of a buy-to-let mortgage, which are suited specifically for properties where rental incomes are more than the monthly installments. However, Indians do take out regular home loans to buy properties specifically for rental purposes. Though archaic rental laws are usually blamed for the slowness of rental markets, it is also true that speculative buying largely includes suburban properties that yield lower rents. The thrust of speculative housing investments has been the lure of higher returns through sale, not through rentals, which are relatively weak. Further, property management for rentals is not yet a well developed aspect of the real estate services industry and the responsibilities of being absentee landlords are daunting indeed.

Megacity Narratives

ramblinginthecity:

The role of public transport in integrating labor markets, discussed in the South Asian context

Originally posted on TheSouthAsianIdea Weblog:

By Anjum Altaf

The discussion of megacities has drifted into a combination of oh-my-god and pie-in-the-sky narratives displacing potentially sensible and useful analyses.

As an example of the first, consider how often one hears that Karachi had a population of 11 million in 1998 and is twice that now – as if that was enough to clinch the argument that we have a mega-problem on our hands.

My response is: So what? I am not particularly bothered if the population rises to 30 million. What matters, and this is the real question we should be asking, is whether Karachi is well managed and whether its management is improving or deteriorating over time.

Suppose the answer is that Karachi is not well managed. If so, does that have anything to do with its size? As a test, I would ask the proponents of the size-is-the-problem argument to go live in Mirpur…

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Doodles galore! Tools for concentration or by-products of boredom?

Part (a very tiny one!) of what I do at work, especially in discussions and meetings is this! I’ve always done this, regardless of how involving or terribly boring the talk flying around is :)

IMG_0964  IMG_0966 IMG_0967 IMG_0968 IMG_0980 IMG_0981

CPR co-organises event on ‘Making labour markets work': SHRAMIC Initiative

Originally posted on cprurban:

By Mukta Naik, Senior Researcher, CPR

Government and civil society initiatives in skill development, formalisation of informal jobs and portability of rights can improve labour market outcomes for the ‘working poor’

Improving the livelihoods of the ‘working poor’, many of whom migrate out of their villages in pursuit of livelihood, is a key challenge for India’s economic growth as social cohesion. The SHRAMIC event on ‘Making Labour Markets Work’ held in Delhi on 13 February 2015 brought together government officials, policymakers, industry experts and representatives from a pan-India network of NGOs working under the Tata Trust’s Migration Initiative to deliberate on the mechanisms to make labour markets more inclusive for the working poor, especially for migrant labour.

Inaugural session highlights convergence of efforts 

The convergence of government and civil society efforts was a key recommendation of the inaugural panel at the event. “It falls upon the government and new institutions to…

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Inclusion, Contestation and Identity in Indian Cities: An event report on recent talks

ramblinginthecity:

A week of exciting talks at CPR!

Originally posted on cprurban:

By Mukta Naik, Senior Researcher, CPR

With three excellent talks taking place within a week, CPR has been quite the hub for discussion on topical urban issues. While distinct, the talks (as conversations on ‘urban’ are wont to do) converged and coalesced, intersected and jumped around common themes like inclusion and poverty, the politics and contestation over urban services and identity issues around urban and rural.

Inclusion in public sector housing

On Friday, 20th February, Diana Mitlin, Professor of Global Urbanism and Director of Global Urban Research Centre at Manchester University talked about ‘Realising inclusive urban development – a discussion of experiences across the global South and lessons from the JNNURM’. Her study of the Basic Services for the Urban Poor (BSUP) component of the JNNURM program reveals, broadly, that end-users were inadequately consulted during project, that access to services worsened for many beneficiaries, that the process of…

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Its the people who make the land – Kutch (5)

ramblinginthecity:

People offer a flavour that nothing else can and will!

Originally posted on sitanaiksblog:

Even a tourist destination is more than just the site – its  the people, the place and its environs that define a place. In the recent whirlwind 5-day tour we did in Kutch, we stayed 4 nights in 4 different places, traveled 1500 kilometers by road and took in a multitude of sights. So, there was little time or scope for people interaction. However, what ever chance I got, I did try and catch the local color!! (All pictures taken with permission of the subject)

P1000153 Mia Ahmed selling the puja flowers outside Bhuj market

P1000152 A feisty older woman, with her ware of bel in the Bhuj market.

The local tourists were few and far between. Gujarat Tourism charges just Rs 5/ per adult for entry, which I felt was ridiculously low. But then I caught these two women, in all their pinkness, sitting in the sun.  And they said their …

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Random musings on #politics #youth and #citizenship

I haven’t opined on Indian politics for a while. To tell you the truth, I’ve been ruminating, taking it all in. And here are some randomly picked thoughts from the thousands that buzz around my head.

#1 Let’s stop comparing AAP’s Delhi election win with the 2014 general elections!

I’m really tired of the over-analysis, the conspiracy theories and the general building up of expectations. The truth is that any new government will take time to settle and move forward. And really, can we compare Delhi’s politics with India’s? My quick thoughts: The AAP win is a good jolt for the BJP and hopefully has sent them scrambling to their desks to actually bring out the many policies that are “being worked on” at this time. For AAP, my big question is: Is there a method to Kejriwal’s politics or is it a case of learning to swim so you don’t drown! I’m hopeful, but given his huge mandate, I’m afraid citizens will have to play the triple role of whistleblower, class monitor and audience-giving-polite-applause! Not something we’re used to doing really!

#2 Young people’s politics is confusing and their apathy disappointing

I’m constantly apalled at the strong streak of conservatism among the young today. On Valentine’s Day, I met a young neighbour and asked after her V-Day plans. She didn’t have any. And what’s more, she told me her parents were devastated and upset about her being single and not so ready to mingle! Survey after survey of youth in India have pointed towards a tendency to support the status quo. The Yuva Nagarik Meter survey brought out in Jan 2015 showed these disturbing trends among Indian youth, trends that are consistent with other surveys in recent years:

  • Youth are ignorant about basic civic issues like democracy, rule of law and human rights
  • They are dimly aware of citizenship: “Only 35 percent of high school students consider themselves citizens of India. Nearly three fourth do not know that the legislature is responsible for enacting laws,” as per a Huffington post report
  • They have internalised stereotypes on gender and social justice- 50% are intolerant of migrant workers from other states, many believe that “household help do not have the right to demand minimum wages”

#3 Youth apathy combined with high expectations impacts poll results

I’m not surprised therefore, that we are seeing more absolute mandates than before when elections happen. I think young people are impatient for change but might not really want a radical rethink of positions. Also, they (and it’s not just the young) are given to pass quick judgements and move on if their expectations are not met.

#4 How much does your politics alter your perceptions?

I’m not a BJP supporter and certainly not overawed by the PM’s rangeela personality and flavourful brand of politics. I have a number of friends who are in the opposite camp as well. Many of these left-leaning friends of mine have been upset about something. They claim that previously ‘moderate’ friends who voted for Modi on the plank of development must speak out against the BJP’s divisive politics. There’s a fair amount of hurt going around and the PM’s very recent press statements on religious freedom will, I suspect, add flame to the fire rather than settle things down.

I’ve been arguing with the moderates and leftists among my friends, who tend to shout down anything Modi says or does, on the need to give a fair hearing to the positions brought forth by the current government. Critique them by all means (if possible, constructively), but being obstinately obstructive might not really help! And I’ve been trying hard to follow my own instincts, that tell me that an unconsidered extremist position is a bad one, whether your politics is conservative or liberal is besides the point.

Speaking Volumes: India’s suffragette-princess

ramblinginthecity:

A most informative and thought provoking read. Let’s not forget the women in history….another type of subaltern!

Originally posted on nilanjana roy:

sophia

For the last two decades, I’ve taken my voter’s ID card for granted: it’s just there, like the “sovereign socialist secular democratic republic” of India itself. I almost voted for Dharatipakkad in my first election, before using my franchise a little more wisely, and will vote along with much of Delhi this Saturday. Like most of my generation, I can neither imagine living in a country nor a world where women had to fight for the basic right to vote.

In my favourite photograph of Sophia Duleep Singh, the princess stands outside Hampton Court, an elegant woman whose face expresses her determination. She is selling copies of The Suffragette. Until Anita Anand wrote Sophia: Princess, Suffragette, Revolutionary (Bloomsbury India), even most feminist historians were unaware of the role played by Maharajah Duleep Singh’s daughter in the Votes for Women campaign.

 anitaanand

Sophia Duleep Singh died a year after India gained…

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Electorates in Delhi: What data tells us about electoral rolls and misrepresentation

ramblinginthecity:

This is precious! Especially for all you data lovers out there…

Originally posted on cprurban:

By Bhanu Joshi, Research Assistant at CPR

Electorates are central to any election. Parity in the electoral units (constituencies) is a vital component in defining how representative and, to a certain extent, how fair the elections would be. This draws from democracy’s fundamental tenet of “one man- one vote”; a principle articulated in the framing of India’s constitution.[i]

Preceding the Delhi elections in 2015, Janagraaha came up with a report which was widely published in The Hindu & Scroll on some of the discrepancies in the electoral rolls and effectively electoral misrepresentation in the form of omissions or deletions of electoral rolls in Delhi.[ii] While this reportage, principally around an election, brought around the necessary publicity, the larger process of voter registration continues to be an issue that needs deliberation.

Delhi has seven parliamentary constituencies which neatly fit ten assembly constituencies in them. Post the delimitation exercise, in…

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10 quotes from Jane Jacobs that apply verbatim for today’s smart cities!

Fortune has dug into its archives and pulled out a gem in celebration of the 50th edition of Jane Jacob’s famous treatise The Death and Life of Great American Cities.

As I read this essay, titled Downtown is for people and written in 1958 as a critique of the slew of downtown redevelopment projects that American cities were investing in, I find myself smiling often. It is uncanny how much of what Jacobs writes can just as well be about the approach that governments and planners in India (and even citizens, unfortunately and ignorantly) have to smart cities today. She outlined the problems and offered solutions 50 years ago and it seems that we are still not listening!

#1 Sameness

“From city to city the architects’ sketches conjure up the same dreary scene; here is no hint of individuality or whim or surprise, no hint that here is a city with a tradition and flavor all its own.”

#2 Obsessed with order

“The architects, planners—and businessmen–are seized with dreams of order, and they have become fascinated with scale models and bird’s-eye views. This is a vicarious way to deal with reality, and it is, unhappily, symptomatic of a design philosophy now dominant: buildings come first, for the goal is to remake the city to fit an abstract concept of what, logically, it should be.”

#3 Citizens, ignorantly perhaps, buy the imagery

“…citizens who should know better are so fascinated by the sheer process of rebuilding that the end results are secondary to them.”

#4 City plans must fit the people, not the other way round!

“You’ve got to get out and walk. Walk, and you will see that many of the assumptions on which the projects depend are visibly wrong……..

…..the best way to plan for downtown (replace: the smart city) is to see how people use it today; to look for its strengths and to exploit and reinforce them. There is no logic that can be superimposed on the city; people make it, and it is to them, not buildings, that we must fit our plans. This does not mean accepting the present; downtown (Replace: The city) does need an overhaul, it is dirty, it is congested. But there are things that are right about it too, and by simple old-fashioned observation we can see what they are. We can see what people like.”

#5 Beyond managing cars, allow interesting spaces to flourish

“There is no magic in simply removing cars from downtown, and certainly none in stressing peace, quiet, and dead space. The removal of the cars is important only because of the great opportunities it opens to make the streets work harder and to keep downtown (read: urban) activities compact and concentrated. ……. The whole point is to make the streets more surprising, more compact, more variegated, and busier than before-not less so.”

“Think of any city street that people enjoy and you will see that characteristically it has old buildings mixed with the new. Downtown (Read: City) streets should play up their mixture of buildings with all its unspoken–but well understood–implications of choice.

#6 Technology can inform, but also misinform

Jacob’s example is easily supplanted by the obsession with big data, GIS and 3D imagery, which in itself is a great tool provided planners are able to infuse these with the reality that is so often left out! Populating the walk through with human figures simply ain’t enough!

“Why do planners fix on the block and ignore the street? The answer lies in a short cut in their analytical techniques. After planners have mapped building conditions, uses, vacancies, and assessed valuations, block by block, they combine the data for each block, because this is the simplest way to summarize it, and characterize the block by appropriate legends. No matter how individual the street, the data for each side of the street in each block is combined with data for the other three sides of its block. The street is statistically sunk without a trace. The planner has a graphic picture of downtown (replace: the smart city) that tells him little of significance and much that is misleading.

…….Believing their block maps instead of their eyes, developers think of downtown streets as dividers of areas, not as the unifiers they are.”

#7 Drawing it on a plan does not make it reality!

“In this dependence on maps as some sort of higher reality, project planners and urban designers assume they can create a promenade simply by mapping one in where they want it, then having it built. But a promenade needs promenaders.”

She also makes in the context of Philadelphia the observation that successful urban design happens when city planners and civic leders walk in the city. That’s one simple target for Indian cities! :)

#8 Self- fulfilling prophecy

“government officials, planners–and developers and architects—first envisioned the spectacular project, and little else, as the solution to rebuilding the city. Redevelopment legislation and the economics resulting from it (Replaced: ‘Smart cities’) were born of this thinking and tailored for prototype project designs much like those being constructed today. The image was built into the machinery; now the machinery reproduces the image.”

#9 The individuality of the city is vital and a project approach won’t get you there

“The project approach thus adds nothing to the individuality of a city; quite the opposite–most of the projects reflect a positive mania for obliterating a city’s individuality. They obliterate it even when great gifts of nature are involved….”

Jacobs specifically observes that “the project approach that now dominates most thinking assumes that it is desirable to single out activities and redistribute them in an orderly fashion” and denounces this strongly!

….But every downtown (read: smart city) can capitalize on its own peculiar combinations of past and present, climate and topography, or accidents of growth.”

#10 Sense of place and the importance of surprise and fun!

“A sense of place is built up, in the end, from many little things too, some so small people take them for granted, and yet the lack of them takes the flavor out of the city….”

“(The) notion of order is irreconcilably opposed to the way in which a downtown (read: compact city) actually works; what makes it lively is the way so many different kinds of activity tend to support each other……Where you find the liveliest downtown (cities) you will find one with the basic activities to support two shifts of foot traffic. By night it is just as busy as it is by day”

“….will the city be any fun”

Have picked these quotes out deliberately because the smart cities envisaged in India profess to be moving towards being compact, dense and sustainable in line with contemporary buzzwords  that dominant urban planning and design.

Points to ponder

And finally, for me, it is important to remember that a city is created over time. Many layers – historical events, personalities, social movements and geography, among others- shape a city and make it livable. Do our designs for smart cities have the physical and metaphysical space to allow them to shine and glow with the patina of time? Or will we be issuing a Pass/Fail report card to these entities a decade after they are built, like we are already doing for suburban urban centres like Gurgaon?

A final quote from Jacobs:

“The remarkable intricacy and liveliness of downtown (read: a city) can never be created by the abstract logic of a few men…” (and women)!

Read the essay here.

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