No Home For The Poor In Mumbai

The glittering skyline of Mumbai, often touted as the city of dreams, is underpinned by a stark and unsettling reality—there is “No Home for the Poor” in this sprawling metropolis.

As the divide between affluence and deprivation widens, a pressing question looms: Whose responsibility is it to address this housing crisis that plagues Mumbai’s most vulnerable residents?

A Startling Revelation

Our recent exclusive report cast a light on the dire state of affordable housing in Mumbai. While the city continues to bask in the glory of its status as India’s financial capital, a significant portion of its population finds themselves locked out of the housing market, struggling to secure a roof over their heads.We brought to the attention of Maharashtra Government a troubling truth—real estate prices in Mumbai are soaring to unprecedented heights, and the dream of homeownership for the vast majority of working class and middle class population remains elusive.According to our findings, the root cause of this crisis is the burden of exorbitant premiums placed upon real estate development in the city, driving property prices to astronomical levels.

 

The High Cost of Mumbai’s Aspirations,

Mumbai’s aspiration to be a global financial hub has come at a steep cost for its poor citizens. Our report which has been submitted to the Maharashtra Government is available for Public Scrutiny. According to our findings, developers in the city bear an average of INR 54,221 per square meter as approval costs through various premiums, a burden significantly higher than in other major Indian cities. This staggering difference has led Mumbai to collect 25 times more premiums than Delhi NCR, 50 times more than Hyderabad, and 47 times more than Bengaluru for residential real estate projects.

Consequently, the average price per square foot for apartments in the Mumbai is INR 30,000, nearly double that of Delhi and Bengaluru. This affordability gap has created an insurmountable barrier for the city’s less fortunate residents, pushing them to the fringes of Mumbai’s urban sprawl, far from employment opportunities, educational institutions, and essential services

The Broader Implications:

The scarcity of affordable housing in Mumbai has dire consequences that reach far beyond housing itself.

Our report highlights several critical issues such as:

1. Increased Social Disparity: The growing chasm between the affluent and the marginalized threatens the social fabric of Mumbai, perpetuating inequality and division.

2. Economic Impact: The housing crisis is not only a humanitarian concern but also an economic one. As families grapple with precarious living conditions, it affects their ability to participate in the city’s workforce and contribute to its growth.

3. Urban Migration: High living costs are driving people away from Mumbai in search of more affordable alternatives, robbing the city of its diverse talent pool.

4. Stifled Economic Mobility: The lack of affordable housing prevents individuals and families from improving their living conditions and achieving upward economic mobility.

Who’s To Blame?

In the wake of this alarming report, the question arises: Whose responsibility is it to address this housing crisis in Mumbai?

Is it the government, real estate developers, or the civil society?

In reality, all have to play a pivotal role to make Mumbai a liveable and an equitable city.

The government must reconsider its policies on premiums and approvals for real estate projects, seeking ways to reduce the burden on developers and, subsequently, homebuyers. Initiatives to promote affordable housing, such as subsidies and incentives, are crucial steps.

Real estate developers, on their part, can contribute by collaborating on affordable housing projects by passing on the benefits passed by the government to the end users rather than looking for profit expansions.

The government has to appoint an independent committee to ensure that the premium benefits offered by the government is passed onto the home buyers.

The Civil society, home buyers, non-governmental organizations and we all citizens of Mumbai must come together and raise awareness about this issue, advocate for policy changes, and support initiatives that provide affordable housing options for the majority working class citizens of the city.

A Hopeful Path Forward

While the high property prices in Mumbai are dire, they are not insurmountable. We have made several recommendations to the government. Which can be succinctly summarised into Two Parts – 

A. 50% reduction in all premium charges: We have recommended for a flat 50% reduction in all premium fees charged by various departments of Maharashtra government. This bold move could stimulate the development of affordable housing projects, making homeownership attainable for a broader segment of the population.

B. Reduce the number of premiums from 36 to 6: We have recommended for a reduction in the number of premiums in Mumbai which is also the highest in the world. Our recommendation advocates for a significant reduction in the number of premiums to a streamlined total of 6 from the current 36. This strategic move aims to enhance transparency within the sector while effectively dismantling any perceived nexus between political and administrative entities and developer community.

 Mumbai’s future as a thriving, inclusive metropolis hinges on its ability to address this housing crisis and ensure that there is indeed a home for everyone within its boundaries. The battle to solve this crisis is everyone’s responsibility, and the outcome will shape the city’s destiny for generations to come.

By
Titto Eapen
Founder & Chief Editor
Urban Acres