Urbanization of the population implies greater demand for housing in cities. There has to be a portfolio of housing options available for the diversity of people which constitute a city. I am familiar with the property prices in the San Francisco Bay area, one of the highest in the US. Even I get a sticker shock when I see the prices of housing in Mumbai. I cannot imagine how the poor manage to survive. Which partly explains why about half of Mumbai’s 11 million people live in slums.
Last week Saturday I was at the ISB in Hyderabad to attend a working group on urbanization. One of the most important components of urbanization is housing. At the ISB, Dhaval Monani is working on affordable housing and has plans in place for putting up low cost around 250 sft homes (on 450 sft land parcels) for around Rs 2 lakhs (or $4,000). They will be built around industrial areas which are often situated in the outskirts of cities. That’s an exciting project.