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Global Compact International Yearbook 2013
Ashoka Innovators for the Public, an
association of the world’s leading social
entrepreneurs, and TÜV Rheinland, a
global inspection, certification, train-
ing, and consulting company, are using
their joint competencies to facilitate the
exchange between real estate developers
and the low-income population. The
mission of the joint project “Creating
Homes – Affordable Housing in India”
is “[to] create a rating system for afford-
able housing that certifies sustainable,
safe, and quality housing for BoP [bottom
of the pyramid, referring to the poorest
socioeconomic group] customers.”
The large influx of immigrants has left
the cities in dire need of innovative city
planning measures and approaches to
find appropriate housing. Due to the
large differences in monthly incomes –
which range from 3,300 INR (approx.
$65) for the most vulnerable to 25,000
INR (approx. $500) for informal sector
workers and micro-entrepreneurs –
there is no all-encompassing solution.
The focus of this project is on the low-
income urban population earning be-
tween $200 and $500 a month. From a
financial point of view, these urbanites
would be able to afford a new home at
market price in a well-functioning real
estate and financial market. Yet, the
reality is just the opposite. Low-income
families are facing multiple barriers
such as a faulty property rights system;
bureaucracy combined with corruption;
low-quality, expensive building materi-
als; restricted distribution channels; and
lack of financial and technical support.
Factors such as irregular incomes and no
provable financing or tax receipts deter
the banking and housing industries from
including informal sector workers and
micro-entrepreneurs into the market.
Alleviating these market inefficiencies –
and thus improving the housing situa-
tion for the mentioned income group –
is the mission of Ashoka’s initiative
Housing For All. The civil sector, TÜV
Rheinland, as well as additional actors
from the private sector have combined
their complementary expertise to set
up a framework for a market-based
solution. Whereas developers are in
possession of a wide knowledge base
about land acquisition, construction,
design, financing, as well as legal and
fiscal regulations, citizen sector organiza-
tions can provide valuable insights into
the needs and demands of the target
group. By introducing new entrants to
the market, examples can be made, posi-
tive impacts demonstrated, the mindset
of the market changed, and the supply
of affordable housing increased. In the
end the synergy is beneficial for the
businesses, communities, and custom-
ers involved.
Besides the mere increase in housing
supply, the initiative focuses on amelio-
rating quality by developing a best prac-
tice standard. The project partners TÜV
Rheinland and Ashoka are combining
their expertise to create a certification
that sets a benchmark for quality hous-
ing. With the help of this benchmark,
real estate developers and low-income
families will receive guidance on appro-
Creating Homes –
Affordable Housing in
India
TÜV Rheinland
In recent years there has been a large migration wave from India’s rural regions to the cities.
Soon, 40 percent of the Indian population will be living in the country’s urban centers.
Due to this fast growth and the large influx of people, cities are having trouble providing
adequate living spaces, utilities, and facilities. More than 130 million people – equivalent to
40
to 60 percent of the urban population – are expected to be living in substandard housing.
These low-income groups face a broken housing market that hinders them from living in an
affordable and quality home.
By Katharina Riese and Svenja Wittkämper, TÜV Rheinland