Chapter 8

Housing & Construction Marketing

Overview• Introduction to Industry

• HUDCO & It’s Objectives

• NHB & It’s Objectives

• MHADA

• Innovations & Technologies

• University Questions

Introduction to Housing & Construction Industry

• One of the fastest growing sectors in India• Growth – 34 % annually• Average profit from construction in India is 18%, which

is double that of the US• 5% of the country’s GDP is contributed by this sector• The relaxed FDI rules implemented by India has invited

more foreign investors• Closely connected with the physical quality of life• It has a highly tangible product• Service lies in planning of the projects, managing the

housing colony• Leads to overall socio-economic development

Housing & Urban Development Corporation (HUDCO)[Univ Q – May 04(5 marks)]

• Incorporated on 25th April 1970

• The principal mandate of HUDCO was to ameliorate the housing conditions of all groups and with a thrust to meet the needs of the low-income group (LIG) and economically weaker sections (EWS)

• Formed to assist agencies and authorities in upgrading the housing conditions in the country, aims to provide financing for housing developments

• HUDCO Niwas Yojana for the lower income group (LIG), HUDCO Niwas - HUDCO home loans by HUDCO Bank

Housing & Urban Development Corporation (HUDCO)

• Motto: “Profitability with social justice”

• The activity areas of HUDCO include:– Urban housing– Rural housing– Repairs and renewal– Working women ownership housing– Land acquisition

• Special Loan Scheme for rebuilding Tsunami affected villages

• Promotes use of alternative building material and appropriate technologies – cost effective & environment friendly

• New Initiatives – Community Toilets & Sanitation Prog.

Objectives of HUDCO[Univ Q – Nov 02(10 marks)]

• To provide long-term finance for construction of houses for residential purposes

• To finance or undertake, wholly or partly, the setting up of the new or satellite towns.

• To subscribe to the debentures and bonds issued • To finance or undertake the setting up of industrial

enterprise for building material. • To administer the monies received, from time to

time, from the Government of India• To promote, establish, assist, collaborate and

provide consultancy services for the projects

National Housing Bank (NHB)• Established on 9th July 1988 under The Act of. The

National Housing Bank Act, 1987

• Provides financial and other support to the Housing Finance Institutions

• Issues directions to housing finance institutions to ensure their growth on sound lines

• Loans and advances and any other form of financial assistance to scheduled banks and housing finance institutions

National Housing Bank (NHB)[Univ Q – Nov 05(5 marks)]

• Formulate schemes for the purpose of mobilization of resources and extension of credit for housing

• To promote a sound housing finance system to cater to all segments of the population

• Make housing credit more affordable

• ‘Swarna Jayanti Rural Housing Finance Scheme’ seeks to provide improved access to housing loans to borrowers for construction/acquisition/ up-gradation of a house in rural areas of the country

Objectives of NHB[Univ Q – Nov 02(10 marks)]

• To promote a sound, healthy, viable and cost effective housing finance system

• To promote a network of dedicated housing finance • To augment resources for the sector and canalize them

for housing. • To make housing credit more affordable.• To regulate the activities of housing finance companies • To encourage augmentation of supply of build able land

and also building materials • To encourage public agencies to emerge as facilitators

and suppliers of serviced land, for housing.

Maharashtra Housing Area Development Authority (MHADA)

[Univ Q – May 04, 06 (5 marks)]• Maharashtra Housing and Area Development

Authority• Established in 1977• Engaged primarily in constructing and selling housing

to low and middle income groups in urban and semi-urban areas

• Undertakes repairs/revamping of MHADA buildings and other dilapidate structures, also manages the post-repair and construction debris

• 30,000 housing units in Mumbai in Majaswadi, Chandivali, Oshiwara and Powai etc.

Maharashtra Housing Area Development Authority (MHADA)

• Slum dwellers rehabilitated under the program of Environmental Improvement of Slum

• Running out of land, requested the state government for 700 hectares of salt-pan land in the Vikhroli-Mulund area

• Activities of MHADA:– Creation of land reserve for shelter– Slum upgradation outside Mumbai– Maharashtra Urban Development Project (MUDP)– Reconstruction/upgradation work for slums in

suburban Mumbai– Reconstruction of old BDD chawls in Mumbai city

Innovations & Technologies[Univ Q – May 05, 07(10 marks)]

Innovations & Technologies

University Questions• What is the govt. policy towards housing &

briefly explain the objectives of NHB & HUDCO? [Nov 02(10 marks)]

• What is the impact of innovation & technology in the housing & construction industry? [May 05, 07(10 marks)]

• Recent Trends [Nov 07(5 marks)]Answer includes:– Introduction to industry – Innovations & technology