DLF's Attempt to Redefine EWS Housing Fails to Impress
India's largest real estate developer, DLF, recently proposed an unconventional approach to contributing to Economically Weaker Sections (EWS) housing. According to a government source, a senior DLF executive suggested to Urban Development Minister Jaipal Reddy that servant quarters attached to high-end apartments could be considered as the developer's contribution towards EWS. This proposal was promptly rejected.
EWS Housing Guidelines for Developers
- Build at least 35% of dwelling units for EWS in all group housing projects in Delhi
- Alternatively, allocate 15% of the permissible Floor Area Ratio (FAR) for EWS housing
- Whichever of the two conditions is higher will be applicable
DLF's Reluctance to Embrace EWS Quota
DLF's hesitation to build affordable housing in upscale colonies stems from potential revenue loss. The company has consistently shown discomfort with the EWS quota, seeking alternative solutions like the 'servant quarter' proposal.
The Widening Gap in Affordable Housing
The Indian realty boom over the past four years has led to a three-fold increase in housing prices across several markets. Meanwhile, private developers like DLF have primarily focused on high-end apartments, offering substantial profit margins. This approach has left a significant void in catering to the housing needs of economically weaker sections.
Key Statistics
- DLF's net profit surged almost four times in FY08, from Rs 1,934 crore to Rs 7,856 crore
- The past year saw negligible initiatives from developers to address the affordable housing shortage
Implications for Affordable Housing in India
The government's efforts to increase dwelling space for EWS members face challenges from developers' reluctance to participate. As the real estate market continues to evolve, the need for inclusive and affordable housing solutions becomes increasingly pressing.