Most of governments have developed the policy to encourage participation of private players to develop affordable housing through financial & non-financial supports, cross subsidized models. Proactive participation of private players in these PPP models should reduce the burden on the government and the developers.
As the land is the costliest commodity in real estate, the government has come up with alternatives for PPP model in affordable housing such as private land that can be developed for intensive utilization, such as higher FSI or in exchange for permission to build high-end housing. The policy is drafted keeping in mind that the developer will not have to bear the land cost and will invest in cost of construction which can be recovered with additional profit through models.
These models are formulated and differ on aspects like land ownership, type of development mix, type of recovery, maintenance of houses and allotment of houses.
GLI is well positioned to facilitate the Public Private Partnerships in this housing sector.