June 23, 2008	Monday	Jamadi-us-Sani 18, 1429

RAWALPINDI, June 22: The real estate prices in the country remained exorbitantly high and beyond the reach of even middle- income households, despite some fall from peak prices, says the mid-term review of Medium-Term Development Framework (MTDF-2005- 7) prepared by the Planning Commission.

According to the review, the housing boom and spiralling real estate prices fuelled mainly by post 9/11 remittances have slowed down somewhat in the first two years of the MTDF. While the boom has led to large expansion of city limits, especially in the major cities, the housing boom was confined mainly to well-to-do households and overseas Pakistanis.

These developments have thrown an additional challenge to the government to meet the housing demand for middle class and low income households, the review notes.

The review says a “Spatial Strategy” to provide guidelines at the national, provincial and local government levels is yet to be formulated to maximise efficiency of human settlements.

In its absence, the cities have expanded horizontally and are putting enormous pressure on providing expensive infrastructure.

Further, the rising costs of construction material are also affecting negatively in achieving the policies and targets set in the MTDF.

The review regrets that not sufficient attention, especially on low-cost housing schemes for low-income groups, has been paid in the first two-and-half years and this situation needs to be rectified.

Pointing out some of the steps required to overcome the problem, the review called for focusing on low-income households with active involvement of the private/corporate sector, banks and private entrepreneurs as encouraged by the local governments to make investment in housing.

The review recommends that the establishment of Land Banks at the local level can play an effective role in delivering the low- cost housing schemes for the destitute. Objective of the physical planning and housing sector is to improve the capacity to achieve adequate living environment through integrated spatial planning and holistic physical development.

The review says land supply, especially for housing, has a critical role in supporting the quality of life in urban areas. The number of people per house in urban areas is gradually increasing due to population growth and migration from rural areas to the urban areas has also increased.

The housing backlog has increased from 4.3 million units in 1998 to six million units in 2005. Current incremental demand for housing is estimated at 570,000 units annually, whereas, less than 300,000 units are being built annually, mostly in urban areas.

The overall housing stock comprises 39 per cent Katcha houses, mostly without proper drinking water supply and sanitation, 40 percent ‘semi-pucca’ houses mostly without planned sanitation or sewerage system, and 21 percent ‘pucca’ houses.

Absence of planned efforts to meet the housing standards of the urban poor has resulted in the spontaneous formation of slums and katchi abadis in different areas of the metropolises, including on prime urban land, vulnerable catchment areas of rivers and nullahs, and other unsafe areas.

A significant portion of urban population is living in slums, without adequate housing and living conditions. Housing for rural population, constituting two-third of the total population, has not received adequate emphasis.

The low-income housing schemes developed both by private as well as public sector is well beyond the affordability of the low-income groups. The real estate boom in recent years has made it difficult to achieve the targets, the review says.