According to some reports, the government wants to to launch a housing project, mainly for the poor and the needy. The Pakistan Housing Authority has undertaken building of houses in different locations around the country.
However, the approach to provide housing through built units needs a thorough review, as such schemes were also launched in the past, but they failed to achieve their objective as the housing needs seem to be on increase. The net housing need is safely estimated to be around one million units in the country. The need assessment, at least at the district and sub-district level, is a primary aspect while determining a housing project. Contrarily, it so happens that such projects are launched in areas where the government finds favourable conditions such as abundant land (either directly owned by the state or easily acquirable by the various departments). When this raw land is converted into land parcels for sale or built units, the people who possess the buying power purchase for speculation and investment. Peri-urban localities of Karachi such as Shah Latif Town are examples where even after provision of basic facilities — occupancy could not be created thereafter causing the scheme to fail. Urban and regional economics is a major consideration in determining the housing development.
Cities and locations that are focus of economic activity generate more population than others. If compatible choices and options for housing are not developed accordingly, the population resorts to informal options and creates its own choices. Squatter settlements, which have become one of the most pressing urban management issue, are an outcome of the same process.
Housing is also considered as an investment for almost all the income groups. It directly relates to the real estate index of the unit in reference to the neighbourhood and the city. The locational and commuting advantage of the settlement is one of the foremost determinants in reinforcing housing choices. Places which are generally remote, devoid of host population and basic infrastructure normally develop slowly, usually missing the target group for whom they are planned.
The majority of housing projects and programmes that are launched by the government aim at the lower income groups for obvious reasons. However research has shown that most of such schemes are acquired and occupied by the middle-income groups for which there are more than one reasons. One, the real poor do not usually have the means to fulfil the financial terms and conditions laid down for application to such schemes. An initial deposit to the tune of 5 to 10 per cent of the total price of the plot is demanded at the time of application. This amounts to several thousands of rupees, absolutely unaffordable by the poor. Two, the allotment procedure comprises tedious and cumbersome acts of filling forms, preparing and submitting ‘challans’ and filing affidavits of various works.
In the process, one is supposed to visit several offices, and banks. It requires a great deal of idle time during working hours of several weeks. Poor people cannot spare such kind of time as they are either daily wage earners, self-employed petty sales persons, lower grade public or private employees and the like. In all such occupations, leaves of absence amount to risking or losing the job/work. Three, after fulfilment of the initial tasks, the balloting for allotment is done as the number of applicants are surely several folds greater than the available plots.
The chances of real poor, who submit one application are greatly reduced against the multiple applications field by speculators and investors. Four, if at all the plot is allotted to a poor person, the time lag between allotment provision of basic development and occupancy are spread onto many years. The poor, who require the land as their immediate need, cannot wait. Thus the whole exercise becomes futile for them. Five, after acquisition of land, the poor require finances to build houses and technical advice.
The provision of middle-income housing is grossly disproportionate to their number. From sociological perspective, it is apparent that middle-income households are greatly multiplying due to breaking of joint families and emergence of young couples/nuclear families. However they have to avail the housing stock built by developers and builders. Besides they intervene into poor’s housing choices whichever they find appropriate for their wishes. One can observe that Metroville Schemes, Surjani Town and Shah Latif Town are greatly acquired by middle-income households.
The middle-income groups have the modest capacity to pay for basic services including piped water supply, piped sanitation, electricity, gas and transportation. However the public sector fails to provide options and appropriate choices for this expanding clientele. However the quality and level of urban basic services is incompatible in schemes utilized by middle-income groups. It retards the social mobility of these families who end up spending more than the legitimate amount on acquisition and sustenance of such services. Besides the land allocation and development are done in a quasi-legal way.
Another factor is the absence of rental housing. The tradition of house ownership reduces the possibility of rental housing choices to great extent. Also the middle-income groups invest in small-scale property as a means of security and livelihood. This is because of the reason that other options of investment are greatly risky and possess a history of sudden collapse. Thus the real estate investment is of vital importance for middle classes. The high-income groups have both the financial and managerial capacity to build their abodes according to their desires. Although needed in smaller number, the nature and magnitude of infrastructural system is needed of high quality in high-income localities.
Housing credit is one of the most vital ingredient to especially facilitate the access of low-income groups to housing. Its terms, conditions and modes operandi must be made compatible to the socio-economic conditions of the poor. Access to information must be ensured for the target groups.
Specially designed information campaigns must be developed for each segment of the target groups according to their status and compatibility. Technical advice is an essential aspect for utilizing the housing credit in an efficient manner. Construction industry should be supported by the government to promote local scale entrepreneurship.
And the localized implementation of the plans must be clearly upheld. The policies may be made at the upper tiers but planning, execution, management and maintenance of housing project should be done at local level. It must be clearly understood that unless appropriate housing is not made available to the people, a healthy society will remain a far reality.