Housing Development: New Opportunity for Consulting firms

Kishore Thapa
Acting Secretary Water and Energy Commission Secretariat, Government of Nepal March 11, 2009
Courtesy: Civil Homes

Housing Situation of Nepal (Nepal Living Standard Survey 2003)

Description Owner occupied Renters Access to electricity Access to piped water Provision of Toilet Concrete roof Average size of Dwelling Unit 1995-96 93.8 % 2.2 14.1 32.8 21.6 5.7 604sq.ft 2003-04 91.6% 5.4 37.2 43.9 38.7 13.6 531sq.ft

Housing Development Process in Nepal

Housing is individuals responsibility. The owner-built housing is predominant. Social housing scheme is non-existent. Housing is more than a commodity- it is a symbol of status and an indicator of social security.

Common Features of Owner- built Housing

It is the owner who:
mobilizes finance, purchases land, hires architect/engineer gets building permit, hires contractor for construction, gets services like road access, water, drainage, electricity, telephone.

Difficulties in Owner- built housing

Land is purchased from land brokers, finance is mobilized through personal savings or loan from friends and relatives. Designers and contractors are hired on informal basis without any formal contract. Physical infrastructure is often substandard. House construction is incremental and takes many years to complete.

Difficulties (contd)
There is no uniformity in design or harmony in built environment. People build as per their wish with least regard to their neighbors or existing environment. For municipalities, it is very difficult to impose design guidelines and standards.

Housing Need and Demand

Housing is a basic need which people fulfill through formal or informal means. Organized housing development meet housing demand through formal means. Slums and squatters settlements meet housing demand through informal means. Squatter settlements emerge due to gap between need and supply in formal system.

Formal and Informal Processes of Housing

Formal process:
Land Infrastructure Building People

Informal process:
Land People Building Infrastructure

Six Attributes of Housing

1. 2. 3. 4. 5. 6. Location Land Infrastructure Physical structure Finance Tenureship

National Shelter Policy of Nepal-1996

The role of the government will be that of a facilitator and enabler. Private sector will be promoted to the delivery of dwelling units The government will limit itself to provision of basic services and regulatory mechanisms.

Factors affecting housing development

Government policy Housing market (Demand and supply) Construction technology (materials, workmanship) Housing finance Land market Physical and social infrastructure

Courtesy: Civil Homes

Legislative framework for Housing Development in Nepal

Apartment Ownership Act-1997. Town Development Act 1988. Local Self Governance Act -1999. Land Survey Act 1962. Building Act 1997. National Building Code 1996. Nepal Engineering Council Act 1997.

Actors in housing market

Banks FI

Developers

Builders

Consultants

Land owners

Households

Govt.

Real Estate agents

Vision in housing sector

Our vision should be that all the Nepali citizens live in a safe and decent shelter.

Our mission should be that each and every Nepali household is provided with affordable and adequate shelter.

Opportunity for Consultants

Housing development creates new projects in the private sector. The size of housing projects is bigger than individual building projects. Housing projects demand cost effectiveness, functionality and aesthetically pleasing built environment. It involves planning, design, detailing, construction management and marketing.

Consideration for improved housing design

Efficient site planning. Functional space design of dwelling units. Energy efficiency. Pleasing built environment. Contemporary architecture. Inclusiveness( meeting requirements of aged, disabled, children and women).

Types of Housing Projects

Group Housing. Apartments. Slum improvement. Land development.

Recommendations
Understand the housing situation and the housing process of the country. Know the actors in the housing sector. Understand the housing market. Understand the legal and administrative requirements for government approval. Think how slums and squatters can be improved.

Recommendations
Think of how cost of construction can be minimized. Think of how different income groups can live together in a single colony. Think of how dwelling units can be provided at affordable cost.

Thank You
Courtesy: Chhauni Housing