HOUSING FINANCE RE-EXAMINING THE SOLUTIONS TO HOUSING FINANCE. SUMMIT 3rd EDITION 18 TH SEPTEMBER 2018 SAHARA STAR, MUMBAI

Transcription

1 HOUSING FINANCE SUMMIT 3rd EDITION 18 TH SEPTEMBER 2018 SAHARA STAR, MUMBAI RE-EXAMINING THE SOLUTIONS TO HOUSING FINANCE

2 OVERVIEW Food, Clothing & Shelter the three major requirements of human being and among these three, Shelter or Housing has become one of the fastest growing sectors of India. Being the 2nd largest populated country in the world, the demand for Housing more than it was over couple of decade ago. A large population base, rising economy, increasing purchasing power and rapid urbanization leads to growth in this sector. However, the major task is delivery of housing to the masses which is a lurking reality since last few decades. To maintain a balance between the rich and the poor, the Government of India has been coming up with various schemes that not only promotes housing, but Housing for All. In our country, the problem of housing is critical. There is an extensive gap between the demand and supply of houses. This gap is giving rise to slums in cities where crores of people are live in most unhygienic and unhealthy conditions. This can be seen in almost all major cities such as Delhi, Mumbai, Chennai, Kolkata, Hyderabad, Pune, Guwahati and so on. Slums, or low standard of living, isn t a respectable representation of the growth path of the progress that the country is making and so it has become an agenda for the Government to raise the living standards of its people. To understand how important housing for a nation is, we need to understand the role of housing, the problem and the best solution. Several factors like availability of land, high cost of land and building materials, finance etc. have refrained a major chunk of population from having their own house. Of all the issues, finance has emerged as one major and common issue which has been witnessed throughout the country.

3 ROLE OF HOUSING Housing is nothing but representation of the overall socio-economic development of a country and the quality of life of its people. It reflects social objectives such as health, sanitation and education. It helps to advance urban rural equality by lessening down the difference in the standard of living. Thus housing performs multiple functions including many social needs of the household. SCALE OF THE HOUSING PROBLEM The scale of the problem of housing in India is quite wide. The problem has both quantitative and qualitative dimensions. According to 1991 census, the housing shortage was 18.5 million dwelling units, out of which 13.7 million for rural areas and 4.8 million for urban areas % was living in pucca houses, 30.9% was living in semi-pucca houses and 27.5% was living in kutcha houses. Source:

4 The following table shows the shortage of housing in rural and urban areas: Year Population Rural Housing Shortages Urban Housing Shortages Total The table indicates that rural housing shortage increased from 3.4 million in 1961 to 20.6 million in Urban housing shortage increased from 0.9 million units to 10.4 million units during the same period. Thus total shortages of housing increased from 4.3 million to 31.0 million dwelling units. The rate of housing construction in the country is around 3 houses per thousand populations per year as against the required rate of 5 houses per thousand populations. Qualitatively speaking the state of housing in India is miserable. About 80% houses in rural areas do not have basic amenities like safe drinking water, bathroom, toilets etc. Ninth Five year Plan has recorded the inter State variation in housing shortage. There is a large concentration in a few States. For example Bihar accounted for one third of the housing scarcity followed by Andhra Pradesh, Assam, U.P. and West Bengal. In 2000, about 48.7 million people were living in urban slums in unhealthy conditions. According to Ninth Five-Year Plan, million houses are kutcha houses. They are thatched houses made of mud, straw and bamboos. These are unable to face natural disaster like cyclone and flood etc.

5 QUANTITATIVE ASPECT OF HOUSING PROBLEM Quantitatively speaking, there is acute shortage of housing in rural and urban areas in India. Presently, there is shortage of 310 lakh houses in India. Out of which 206 lakh houses are in rural area and 104 lakh houses in urban areas. Therefore, these factors clearly outlines the need for Housing not only in the urban areas, but in semi-urban, peri-urban and rural areas of India. All these points towards the problem of housing finance finance for development projects and ease of finance for the common people. Housing finance companies never had it so good. Reassuring policy framework and more disposable income are creating a perfect mix for them. And investors are in a state of surprise. The sector has already brought out many multibaggers over the past 5-10 years. Still, specialists give a big thumbs-up to HFCs, considering the promise the sector shows. But, is all good with HFC? What is their take on policies and market demand? If the sector is so good, then why are many under development projects still facing the issue of finance? The need of the hour is to understand the ground realities by bring in the specialists, the experts and the visionaries all face to face!

6 THE ECONOMIC TIMES HOUSING FINANCE SUMMIT RD EDITION The previous editions of the summit experienced the entire ecosystem of regulators, developers or banks coming together to push the government's objective of "Housing for All, RERA, impact of remonetisation and discussed upon various features of Housing Finance as one of the solutions to the Housing problem in India. This year, The Economic Times aims to go deep down on the key issues which are the primary matter of concern including the status of Real Estate Regulation and Development Act, 2016 (RERA), Housing for All, Affordable Housing, availability of financers and Investors Concern, asset valuation and price correction and also deliberate on issues related to acquisition of land, stay order on under construction buildings, unsold inventories and the dying concept of smart cities. THINGS TO WATCH OUT A world class platform, one-to-one meetings with solution providers and the opportunity to network with your peers will arm you with the information you need. The summit will discuss key challenges being faced, advancement in the sector and the opportunities. Look out for: Focused tracks covering deliberating on need of the hour Inclusive session that will enable and engage the audience through an interesting and thought provoking group discussion to discuss the key issues in the industry and bring out their relevant solutions International case studies to understand business models that s transforming developing nations WHO SHOULD ATTEND? Chairman & Managing Directors, Chief Executive Officers, Vice Presidents, Directors, Head of the Department, Liaison Officers, Investment Officers, Risk & Credit Departmental heads, and Consultants from: Housing Finance Companies BFSI Construction Financers NBFC BENEFITS OF ATTENDING Biggest convergence of Housing Finance Companies in India Apprise yourself with policy implications Banks Regulators / Bureaucrats Update yourself with the new schemes and subsidies undertaken by the government The key stakeholders from the housing and housing finance sector along with the Government representative come together to discuss the challenges, issues, opportunities and the present housing finance environment Networking with the best of the best Live Survey during the summit that will provide immediate feedback from the attending audience on varied issues Rapid Fire Learnings

7 AGENDA 13:00-14:00 Networking Lunch 09:00-10:00 10:00-10:05 10:05-10:15 10:15-10:35 10:35-10:45 10:45-11:30 Registration Opening Remarks Welcome Address Chief Guest Address Keynote Address Panel Discussion: Breaking the Mould Changing Housing Finance patterns in India Post-independence, India has majorly been concentrating on industrial revolution followed by the development of agricultural land. In the recent few years, the Government has been focusing on the Housing for All. It is always a dream to own a house however a majority of the population does not have the required financial assistance to own a house. It is a fact that housing is a very expensive commodity and calls for heavy capital for development. At the same time, housing leans heavily on finance from both developer and purchaser point of view. The complexity of Housing Finance Developer s role in bringing Hope to Homeless Dependency on long term and short term financing schemes Imbalance between supply and Need for Financing Repayment issues Asset Value and Price Correction Lenders take on opportunities and risks with India s housing standards 14:00-14:30 14:30-14:45 Inclusive Session: The Impact of RERA - Has it made it Large? "It is a very well-known fact that The Real Estate (Regulation and Development) Act by the Government of India is an act which seeks to protect home-buyers interest and at the same time help boost investments in the real estate industry. It s been a year since it has been implemented RERA has become a norm across the length and breadth of the country. Nevertheless the criticism received for its slow and delayed implementation, this progressive regulation is helping in proper execution and delivery of projects, improving the demand and sales and also in revival of the residential real estate sector. The 1 year of RERA Has RERA been brought into effect by all 29 states 07 UTs? Does RERA cover all large and small developers? Is it really helping to regulate the sector? What are the challenges and concerns pertaining to the law? Standalone: Digital Financing - Myth vs Truth Just few clicks, less or no paper documentations, pre-approved loans few key words that are prominent in the housing finance digital era. Is it a real story or is there a flip side to this story? How true is the story of digital financing? Does it really exist? And if it does, is it safe enough? Since we are in the digital era, it is must to understand the influence of digital in Housing Finance. The session is an attempt to bring out the true story 11:30-11:45 11:45-12:00 12:00-12:45 Networking Tea Rapid Fire Learning: Alternative Financing Solutions Mortgage Bonds Credit Guarantee Panel Discussion: Reality check - Challenges with Affordable Housing VS Luxury Housing A reality check between affordable and luxury housing basis the following criteria s: Population Availability of Land/ Distance from City Centre Taxation Policies Relaxed/ Unfavourable Development Norms Financing issues Why can t luxury developers have affordable housing? Affordable Housing = Affordable Living? Or is the picture different? The session will deliberate from builders PoV and Buyers PoV." 14:45-15:15 15:15-16:00 1 Stop Solution: Experts for your concerns Crystal Ball Gazing + Q&A with delegates 1. Housing for All by 2022 Mission National Mission for Urban Housing 2. Pradhan Mantri Awas Yojana 3. Why is the concept of Smart Cities is Dying out? 4. Stay order on under construction projects - where do the financers go? 5. Policies to cover small scale developers who are not covered by RERA 6. Unsold inventories - How banks, financers and builders can work together and recover from unsold inventories? Micro Lap The next wave in Rural Housing Finance Micro Lap in Tier 3 and 4 How micro lap behaves? Trends in Mico LAP? Consumer s behaviour Alternate housing finance options in rural sectors 12:45-13:00 Standalone: Smart Cities fellowship and internship programmes Ministry of Urban Affairs, Govt. of India's vision to utilize the power of young India in urban planning and governance 16:00-16:05 16:05 Onwards Closing Remarks Networking Tea and Close of Conference

8 FOR FURTHER DETAILS, CONTACT: