5. Housing

Housing costs in Pune have shot up many folds in the last 2 decades. While this is a boon for existing house owners, it has also meant that owning a house is out of reach for a Majority of Punekars. The middle and upper middle class often do not understand the predicament of the slum dwellers. There is a misconception that these people are ‘encroachers / free loaders’. While it is true that in an ideal world everybody should live in safe and comfortable housing societies and should take housing loans to do so, the reality is very different.

The cost of a 2BHK at the heart of Pune city starts at approximately INR 70 lakhs. On the outskirts, the cost starts at INR 55 lakhs. To buy such a house, a person needs to have a minimum of INR 11 lakhs as down payment and get a loan of INR 44 lakhs. This loan translates to an EMI of INR 33,000 per month for 30 years! What is the income reality of India today? Anybody who makes INR 25,000 per month is considered to be in the Top 10 % of income earners in India! Which means that 90% of India earns Less than INR 25,000 a month!! So 90% of Indians come under the MIG, LIG and EWS categories and cannot even dream of paying this EMI even if they somehow manage to put together the down payment.

Which is why they are stuck in unsafe and unhealthy and subhuman slums or have to live far away from the city. https://www.thequint.com/news/india/bottomless-pyramid-india-top-10-percent-earners-state-of-inequality And these are the same people who are the backbone of our service and manufacturing industry. Our Slums are not full of ‘criminals’ or ‘good for nothings’ but in fact are the lifestream of our urban economy and life – they are the household help and cooks, drivers & delivery people, workers and laborers that run our manufacturing sectors, support staff that runs our IT company offices! Without them, the city would collapse. So, the city Needs these people just as much as they need the city.

It then becomes the moral, ethical and in fact legal duty of the city to provide safe, sanitary and humane living conditions to these citizens and get them out of their present conditions

Slums

There should be a comprehensive plan for Low Income Groups (LIG) and Middle Income Groups (MIG). Here we focus on the Economically Weaker Section (EWS) housing issue in detail. Almost 40% of Punekars reside in almost 500 slum settlements! How do we ensure a dignified life for almost half the city’s population? How can we safeguard their rights and provide them with basic civic amenities? How can we help bring them into the social and economic mainstream?  Honest implementation of the Slum Rehabilitation Act can transform these habitats into centers of innovation and optimism.

Engaging residents as stakeholders and ensuring fair profits for private construction companies are pivotal. However, achieving this demands substantial political will and support not only from the residents but also their more affluent neighbours.

Moreover, restructuring commercial spaces and establishing a robust public transport system are essential to encourage affordable housing development on the city outskirts.

Vote bank politics,local goons and rent seeking slum landlords, red tape, lack of trust between the slum citizens and the system, lack of awareness of the slum dwellers about their rights and the benefits of redevelopment are some of the main issues. Overcoming this will take massive political will and bureaucratic execution. And that will only happen if All citizens of Pune decide and demand that this transformation should take place.

Even when such Slum Rehabilitation Schemes (SRS) are undertaken, they fail because they are not designed keeping the rest of the city that surrounds it in mind – with education, health, employment, public transport being the main ones.

They also fail because the practices of the communities, its economic engine, and how they integrate with the larger city is ignored. They fail because the communities themselves are not involved in the design and decision making process.  The SRA schemes implemented in Pune have been very few and  provide little empirical knowledge at an implementation level.

So it is imperative to look to historical and practical lessons from the development of the SRA in Mumbai and other cities in the world. We must bear in mind that an important problem with the SRA is that it is still a slum by slum approach where only those slums that are lucratively located are taken up for redevelopment. First the city needs to come out with a holistic approach as to how they envisage a ‘housing for all’ strategy where all slums get a fair chance of being redeveloped to provide better housing. This can only be achieved where you have good data sets and up to date spatial information.

Then it is important to involve all stakeholders and have several rounds of discussions before freezing the plan. Instead of ‘one glove fits all’, there should be a range of options worked out based on the location, densities, land values, land ownership, reservations as per DP etc. which will allow the city to identify the most vulnerable slums.

An approach which will help integration of these slums into mainstream housing will help ensure that All are included and no one is left behind There are a lot of Union and State government schemes that can be tapped in to make Pune slum free i.e. to give every last Punekar the dignity she deserves

Middle Income Housing

Not just the 40% slum dwellers, but even middle income (or slightly high income but low wealth, i.e. those without an ancestral home) citizens are facing the brunt of high real estate prices.

A middle class (we are using this term colloquially and not scientifically) working couple making a combined salary of 75000 per month A 2BHK house will cost them a minimum of 60 lacs which translates to an EMI of INR 38,000 + 2000 Hsg Society maintenance charges, PMC taxes, repair & maintenance of the house etc  for the next 30 years, i.e. for most of their working life.

This leaves them just 35,000 for the rest of their expenses which include vehicles and other loans, children’s education, saving for the future etc. This is literally a hand to mouth existence given today’s cost of living.

No wonder the household savings of India are at a 50 year (yes, Fifty year) Low! How can we provide affordable housing to all? Of course by using the basic principle of economics – the law of Supply & Demand. While demand is a given and cannot be reduced, we should focus mainly on increasing supply of low and middle cost housing.

SRS

Implementing SRS will definitely unlock housing supply in the city.

Public Transport

People are happy to live on the outskirts of the city as long as reliable, affordable and comfortable public transport is guaranteed. Please refer to Chapter 2 for more details. Public transport really can be a game changer.

Railway Connectivity

There is a need to beef up existing Railway services to other cities as well as fill in the missing routes (ex: Nashik). But what is equally important is to strengthen connections to nearby towns which can eliminate the housing burden of Pune by allowing workers to commute to the city for work on a daily basis. Establishing townships and mega housing projects along the railway line, creating new stations as well as local commuter trains will have to be done.

Urban Attractions

Why do people prefer homes closer to the middle of the city – why is such real estate at a premium even when our inner cities are often overcrowded? The obvious reason is shorter commutes, but that is not the only reason. The inner cities are crowded, but also for the same reason vibrant. Apart from Work and Home life, we need a stimulating ‘Play Life’ that includes cinema halls, play theaters, music concerts, restaurants, sports facilities etc. It doesn’t even have to be any of these organized attractions – just a walk down FC road / JM road / Main Street is a huge attraction for us. How can one provide this same ‘urban experience’ on the outskirts of the city so that more people settle

Development of Integrated townships around Pune

Integrated townships like Magarpatta City are the way of the future. This model brings existing farmers together and forms a cooperative / company that ensures sustainable, environmentally friendly, modern and aesthetic home-work-play ecosystems.

We need more such planned, green and designed for the future townships on the outskirts of the city as well as in nearby towns which can be connected to the city via high speed public transport (especially especially along the Railway / Metro / BRTS lines).

One important thing to add to such townships (and other real estate projects) in the future should the inclusion of smaller 1RK, 1BHK houses to integrate LIG and EWS housing as well. Imagine what could have been done with Wagholi for example – if we had focused on such townships instead of the ugly, unsafe and haphazard development that has mushroomed there.

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Yours Sincerely Sangram Khopade Punekar