IBP Research Paper

Competition Winter 2006

Topic:

“Low Cost Housing Solutions”

One of the Authors:

Sadaf Fayyaz

I INTRODUCTION

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I.1 WHAT IS LOW COST HOUSING?

By low cost housing, we mean affordable and economic housing for low-income

individuals or families. By an affordable house, we mean that low-income groups or

families can afford to build themselves in their construction through some form of equity

or some mutual aid schemes.

I.2 THE NEED AND DEMAND FOR LOW COST HOUSING

Simply applying the traditional rules of demand and supply, we can know that for the

past two decades, the cost of land has increased. As cost of house and land are

complementary in nature (mutually or jointly demanded products), the price of houses

has increased as well. Again saying the land, capital and labor are the inputs. If the cost

of these inputs increases, the supply curve would shift towards left, making the price

high. The substitution effect for a house is weaker (No substitute for a house or shelter).

There is no other option that people can shift towards, except living in rented houses.

The following diagram indicates the above points clearly.

I.3 THE NEED FOR A LOW COST HOUSE IN THE GLOBAL CONTEXT

In every country the housing industry is a fundamental and strategic sector linked to

improving the standard of living. Resistant shortages of good and affordable housing

exist all over the world. These shortages are lack of planning, lack of capital, exploitation

of resources and a rapid growth in the population. Lack of resources has greatly

exacerbated this problem Housing problem exist all over the world. World urban

population is growing at a much faster rate than the rural population. Poor housing plans

are life -threatening. Low quality housing and unsafe living conditions are responsible

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for ten million deaths worldwide every year. Also the economics genuine scarcity

problems exist as “Wants and desires are unlimited, but resources are limited”. The

housing problem exist more in developing countries than in the developed countries.

Though developed countries also suffer from this global housing problem, but the

conditions are worse in the developing countries. Two more problems faced by the

developing countries are- creating good livlihoohds and preserving environment.

Construction and materials costs are increasing every year and the dream of a common

man to own his own house will never come to an end. Inflation also exists in the housing

sector. Due to these reasons, low-income groups have always been unable to erect houses

for themselves.

I.4 THE ULTIMATE SOLUTION- LOW COST HOUSING

Low cost housing is a practical solution to financially constraint areas.

Problem lies greatly in the development of low cost building materials that appear to

satisfy the production, economic, cultural, safety, health needs imposed by natural

barriers, disaster and lack of resources. Instead of traditional brick models, composite

materials are to be used. These composite materials can effectively substitute

conventional materials like brick, iron and cement. Models having wood-cement panels

and chops appear to have the potential to satisfy these requirements. Not only this, the

wood cement based material satisfy safety and health needs, as well as cultural

preferences. These models also provide security against decay and fungi.

II PART 2 MAJOR CHALLENGES, BARRIERS AND GOVERNMENTAL ROLE

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II.1 MAJOR CHALLENGES FACED BY LOW COST HOUSES

Basically, low cost housing faces four big housing challenges namely: -

 Lack of resources

 Insufficient funds

 Time Constraint

 Shortage of skills

With urbanization, population growth, industrialization, construction materials, capital

for planning, design, construction, maintenance and rehabilitation of houses is either not

available or is of inferior quality. A better housing scheme is achieved if construction

costs are low and quality is superior. Low cost houses should not only be affordable, but

also resistant to natural disasters like cyclones, earthquakes and floods. New techniques

need to be adopted and innovative ideas should be encouraged. Construction costs need

to be eliminated at each step in the construction process. Starting from design,

structuring, re-engineering, and re-cycling up to waste management, this cut down in the

costs at each level in constructing a house would have an impact on the overall cost of the

house.

II.2 BARRIERS TO LOW COST HOUSING: -

II.2.1 ANNUAL INCOME OF PEOPLE

The problem really lies, as income of an individual is low in the developing countries.

The income level is much better in dual earning families, where husband and wife

work together. Where there is one person earning, the income level is quite low.

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II.2.2 HIGH LAND COSTS

Population is increasing at an increased rate. But the land is fixed. This increase

In the demand for land, this ultimately affects the land price.

II.2.3 LOCAL LEADERS EYE ISSUE

This is another issue or barrier for low cost housing.

II.2.4 HIGH INTEREST RATES ON MORTGAGE FINANCING

Banks or retail companies charge high interest rates on mortgage financing. Mortgage

loans and home equity loans are very common, but the initiation process is either too

long or tedious. Also retail banks need certain requirements to be fulfilled completely.

II.2.5 INCREASED URBANIZATION IN THE PAST TWO DECADES

In search of jobs and education, people have moved from villages to cities. This has

messed up cities and the demand for land has increased in the last two decades.

II.2.6 RESISTANCE FROM BUILDERS OF HIGH COST HOUSES

Local manufacturers are reluctant, to use new and cheap building material. They feel

that it is a risk while going for cheap and low cost material.

II.2.7 THE DEFICIENCY OF GOODS LIKE LAND AND INFRASTRUCTURE

Since land is short and so infrastructure is. Housing is a basic necessity and a primary

foothold to step out of poverty. The poor infrastructure does not allow transporting

building materials to rural areas. Population is increasing at a much higher rate but

land is fixed.

II.2.8 LOW INDIVIDUAL /FAMILY PURCHASING POWER

Poor families or households do not have enough funds to access a simple bank

mortgage policy. Commercial banking does not aim to serve the low-income groups

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 actually, but those groups who have sufficient resources to provide collateral for

loans. Some low-income groups are not even able to pay the down payment. The

interest rate that banks offer is also high and an individual cannot afford to pay.

II.2.9 LIMITED ACCESS AND KNOWLEDGE TO MORTGAGE AND HOUSE FINANCING

Most of the people are less aware of mortgage and home financing.

II.3 ROLE OF GOVERNMENT IN AFFORDABLE HOUSING

Eight roles define the government’s involvement in affordable housing:

• The management and operation of non-market (social) housing

• The administration of resources from other levels of government

• Direct funding and development

• Strategic partnerships

• Planning and regulation

• Community development and education

• Research

• Advocacy

II.4 GOALS OF LOW COST HOUSING

It is clear that the housing should be supporting and promoting healthy families and

communities. All of these objectives lead towards a good housing system.

II.4.1 PRESERVING AND EXPANDING THE SUPPLY OF GOOD-QUALITY HOUSING UNITS

First, an effective affordable housing policy should preserve and expand the supply of

good quality housing units in order to ensure the availability of decent housing for low-

and moderate income families.

This is the most obvious objective of an affordable housing policy. For some, it may

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seems the only objective. A good low housing quality program should increase the stock

of housing at any cost. It should ensure that low-income units and moderate-income

residents could afford and ensure the quality of these units. Programs should aim towards

building new units, improving substandard units, and preventing the deterioration and

loss of existing affordable units.

II.4.2 MAKING HOUSING MORE AFFORDABLE AND MORE READILY AVAILABLE

Expanding the number of affordable units is not the only way to address the housing

needs of low- and moderate-income people. A complementary goal is to make existing

housing more affordable and more readily available. For example, programs that

supplement what families can afford to pay for rent, or that provides down payment

assistance to first-time homebuyers, help make existing housing stock more affordable. In

addition, programs that combat discrimination or help families search for housing in the

private market can make the affordable housing that already exists more accessible.

II.4.3 PROMOTING RACIAL AND ECONOMIC DIVERSITY IN RESIDENTIAL NEIGHBORHOODS

Housing policy is not only about affordable shelter, but also about the health and vitality

of neighborhoods and access to neighborhoods of choice for low- and moderate-income

households. When low-income households are clustered in poor or distressed

neighborhoods, their access to educational, economic, and social opportunities is severely

limited. Therefore, effective and affordable housing policies should promote racial and

economic diversity in residential neighborhoods so that poor and minority households are

not isolated from social, educational, and economic opportunities.

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II.4.4 HELPING HOUSEHOLDS BUILD WEALTH

For most middle- and upper-income households, homeownership is the primary tool for

getting wealth. Consequently, most efforts to promote homeownership among

underserved populations are designed not only to expand access to affordable housing but

also to help households build wealth through ownership of decent housing in thriving

neighborhoods.

II.4.5 STRENGTHENING FAMILIES

Housing can profoundly affect the well being of families. For example, programs to

remove (or cover) lead-based paint can protect children’s health. Eligibility rules for

public housing may discourage unwed fathers from living with their children. Rent

policies may encourage (or discourage) residents from working and earning more

income. And housing developments that offer child-care facilities and after-school

programs may encourage parents to work and help families become more self-sufficient.

The affordable housing programs should “do no harm” to the families that depend on

them. At best, they should strengthen families by protecting their health, encouraging

family stability, and promoting income growth and self-sufficiency.

II.4.6 LINKING HOUSING WITH ESSENTIAL SUPPORTIVE SERVICES

Linking supportive services to housing programs is another important objective, since

some people cannot take advantage of affordable housing opportunities without such aid.

For example, a household or a family with a physically disabled or crippled member

might need a housing unit with wheelchair accessibility or on-site staff who can provide

occasional assistance. A frail elderly couple might need daily meals and health

monitoring. And many homeless individuals and families face multiple barriers to find

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and sustain them in permanent housing.

II.4.7 PROMOTING BALANCED CITY GROWTH

A good and low cost housing takes active part in the growth of communities and cities.

Housing policies determine where affordable housing is located, how well it is

maintained and preserved, and where new housing is built. Housing policy fails if it

contributes to the decline of older, inner-city neighborhoods or if it does not create

housing opportunities near centers of job growth. Thus, an effective housing policy

should promote balanced state growth throughout the country.

II.5 STEPS TO BE ADOPTED

1) To inform builders throughout the country about low cost housing and its effectiveness

2) To organize workshops of latest innovative construction technologies and encourage

new ideas,

3) To disseminate up-to-date information, knowledge and experience on design,

production, certification and application of low cost and innovative housing materials,

4) To present the country wise effective ness of low cost housing strategies,

5) To organize seminars and workshops to discuss low cost housing on a geographical

perspective (for example, country’s location, and the types of natural disasters it is prone

to),

6) To implement all the new ideas within the economic resources available in the

country,

7) To call foreign experts from different construction and building companies in order to

know their ideas and plans,

8) To inform common man about the low cost materials through media,

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9) To invite engineers, design experts and architects from all over the world,

10) To inform general public, especially low income groups about the pros and cons of

low cost housing,

11) To provide training to masons all over the country in the improved designs and tools

and techniques,

12) To train young people/ graduates as para-architects to provide technical support and

guidance builders and contract builders,

13) A good construction-estimating program will take the dimensions of a site, as well as

the types of materials to be used, in order to generate a relatively accurate accounting of

the materials needed and costs. To use efficient project management soft wares in the

detection of low project costs. (For example, the expected outcomes, pilot projects and

proper cost estimations under proper and appropriate planning and control). Numerous

construction estimating software applications are available to a general contractor. These

programs take much of the guesswork out of creating an estimate by offering a single

application that handles involved. In the case of framing a residential project, a contractor

simply enters the dimensions.

14) To enter new building materials in the traditional markets and to inform builders

about these,

15) To encourage rehabilitations and provide tax incentives,

16) To provide guidelines all over the country for planning and zoning,

17) The government should fund low cost housing schemes.

18) To allow local communities to designate proper space for housing for various income

groups,

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19) Government should provide subsidies

20) To provide long term investments,

21) Resources available in abundant should be utilized.

22) To lower radically the overall cost of housing delivery process,

23) To construct low cost model houses in every state. These houses should be designed

by keeping in view the number of family members in a family or household. For example

a model low cost house for a family of 4 members should be a little bit different from that

of a family of ten members.

The above mentioned points cloud be discussed in more detail. Since low-income groups

and individuals cannot afford to get them financed for a home loan, what they can do is

that they can go for long-term investments. These investments should be expanded over a

period of years and according to the level of salaries of individuals.

Another threat to long-term investment is insecure living and earning conditions of

individuals. For example an individual gets retired after serving for about thirty or thirty

five years. At that age of life, mortgage financing becomes risky. The average estimated

life of an individual is sixty years. All this heightens the financial risk of any investment

occupants might otherwise make in their homes.

The preference of the poor is another issue. Low-income families can voice their

preferences and gain confidence to invest their resources in home improvement. Also

people may not encourage the low cost housing technology. The visible achievements in

home improvement are another powerful element to demonstrate that change is possible.

Demonstration houses are used to trigger discussion and joint decision-making about

design, construction materials, and processes.

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One of the barriers to low cost housing is securing land for poor, modifying property

rights and proper health and sanitation conditions.

Social capital is probably the greatest asset of low-income communities who can achieve

much by joining forces. This is precisely the key breakthrough of micro credit that

replaced traditional loan collateral by social collateral. The South African Homeless

People's Federation (SAHPF) is an example of a truly community-based organization

designed to be inclusive for the very poor. It uses collective action as a core strategy to

strengthen communities and enable them to initiate and manage changes in the areas that

they have prioritized such as housing. The core strategy to organize communities is the

creation of daily saving groups whose members, mostly women, learn to trust each other

and build a discipline. Saving groups are then federated at the neighborhood, regional,

and national levels.

On the other hand, low-income groups should be encouraged to join self-help projects

since they are unable to rely completely on government for erecting a house. There can

be great potential if low-income communities and groups are enabled to become self-

reliant. A practical example of this is “mutiroes”. This started in Brazil and other parts of

the world in the early 1980s is based on individuals who come together after work and

during weekends to construct their homes and neighborhoods through mutual self-help

projects because they are unwilling or unable to rely completely on the government.

Despite the fact that this process takes longer than using professional full-time

constructors, this approach enables them to reduce costs and effectively teaches self-

management and other administration skills to the community. Another initiative that

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illustrates this principle is ADAPT in Egypt led by Hany El Miniawy. It leverages locally

available materials as a substitute for conventional construction materials as well as

ancient building techniques that are more adapted to weather conditions and culture,

given the limited resources available.

Since the individual possess low purchasing power of construction and building material,

they should be informed about the low cost house material in detail. Some model houses

should be constructed so that people can come and have a look at them. They can better

identify their needs

Thinking holistically about how to make the overall housing transaction affordable to

low-income households rather than reducing the cost of individual components such as

cement or labor is critical. Saiban in Pakistan is a remarkable initiative that makes the

overall housing transaction affordable and convenient for low-income households by

leveraging the benefits of informal housing processes. The organization finances the

purchase of unserviced plots of land, and leaves housing and infrastructure to be

developed incrementally as each household accumulates the money to pay for them—as

occurs in the informal sector. While leveraging informal processes, the organization also

improves on them by providing secure land tenure and organizing residents to plan and

negotiate for additional services. Security in Saiban settlements is higher; costs of living

are lower; and services are obtained years faster than in comparable informal settlements.

II.6 E-COMMERCE AND LOW COST HOUSING

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Streamlining the whole process and switching some of the costs and responsibilities to

clients—an interesting parallel with the Internet revolution that enabled many companies

to rethink their business models by putting customers and partners to work thanks to the

Internet interface, can achieve radical cost reductions. Other strategies to increase the

profitability of distribution in slums and rural areas include multi-purpose distribution

channels and demand aggregation. Examples from other industries such as e-Choupal, an

ITC-led initiative for small farmers in India, could inspire innovations in housing and

building materials. With regards to housing finance, Grameen was one of the pioneers

and has already enabled the construction of over 600,000 houses in Bangladesh. Unlike

other financial institutions, Grameen ventured into giving housing loans based on the

philosophy that investment in shelter for the poor is productive. Its strategy for providing

housing micro finance profitably uses the same organizational infrastructure that it uses

to make income-generating loans, and restricts eligibility to clients who have developed

successful credit histories for four years to reduce risks associated with housing loan

products.

II.7 THE EXPECTED OUTCOMES OF A LOW COST HOUSE

The expected outcomes of low cost housing technology:

The things that a low cost housing scheme has to have are: -

1) Low cost should truly mean low cost.

2) The system should be energy efficient.

3) The building material to be used should be available in abundant.

4) The building material has to be the least expensive one.

5) Unskilled local people should have a right to erect buildings.

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 6) The building material used should be prone to natural disasters like cyclones,

floods and earthquakes.

7) The low cost scheme should be subsidized by the government.

8) Efficient and effective project planning, monitoring and maintenance plans to be

implemented.

9) The expected life of a low cost house should be same as that of a high cost house.

10) For very low-income groups, with large households and families, mobile housing

should be introduced.

11) Since this is a new strategy for planners and developers, who wish to work on

low housing projects.

12) SBT Technology to be adopted

SBT process system is a new technology that aims to produce low cost housing for

developing countries. The vision behind the technology is not only to provide low cost

housing, but also to use efficient methods that help in recycle the waste materials and

reuse them in the construction of new buildings. Instead of heavy materials, lightweight-

building materials would be used in the construction of houses. Discarded house

materials would be used in constructing new buildings.

For a low housing project the following factors are important:

Cost Factors Description

Timings Does low cost housing scheme take more

time?
Proposals and Contracts Are proposals and bids invited?
Clarity of Commitment Involve top decision makers in the project
Valued Engineers Involve valued and experienced project

managers and engineers

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II.8 DESIGN RELATED COST FACTORS

Some design related cost factors include: -

Cost Factors Description

Design Load Realistic designs should be encouraged
Standardization Process Simple and standardized designs to be used
Flexibility of designs See if users are flexible to innovative ideas
Ensuring good maintenance Obviously, the project should promise a

long life

II.9 OPERATIONAL COST FACTORS

Cost Factors Description

Maintenance Review building maintenance regularly in

order to avoid long term problem

Continuous Commissioning
Proper Cleaning Good Cleaning techniques to be adopted
Repairs Any problems faced in low cost houses

should be informed on time

II.10 SOME POWERFUL STRATEGIES FOR A LOW COST HOUSE

These include: -

 To increase city funding for low cost housing,

 To emphasize affordable and low cost housing,

 To get the property back to market,

 To accelerate repair and reduce disapprovals,

 To allow more dense and cheap housing,

 To encourage privatization in the housing sector,

 To support other levels of government as well,

 To create engagement among the community,

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III PART 3 PAKISTAN AND LOW COST HOUSING

III.1 LOW COST HOUSING IN PAKISTAN:

III.1.1 BAHRIA TOWN AS AN ENTREPRENEUR

Bahria town announced a project named Awami villas in 2005. It was a low cost housing

project and aim was to build it in major cities of Pakistan. Bahria Town people aimed to

make 30 thousand villas in Islamabad and 15 thousand in Lahore. These 5-marla villas

would cost from Rupees 350,000 –500,000. The government planned to provide loans to

people to purchase Awami Villas through House Building finance Corporation. Other

facilities like electricity, gas, telephone and water would be made available. Bahria Town

has plans to make low cost houses in other parts of the country as well.

III.2 HOUSE BUILDING FINANCE CORPORATION CONTRIBUTION

III.2.1 GHAR AASAN SCHEME

This scheme aims at providing financial support to 7.5 million. The installment period is

spread over a period of 20 years depending on customer‘s age and retirement. Ghar

Shandar Scheme is another one by HBFC.

III.2.2 ORANGI LOW COST HOUSING

Orangi is another low cost housing scheme for Karachi. It launched its pilot project in

1980. The pilot project was a success. The Orangi Pilot Project - Research and Training

Institute (OPP-RTI) initiated a housing program using the same research and action

approach. Research was carried out in collaboration with the University of Karachi and

the Dawood College and this established that almost all of the houses in the Orangi

squatter settlement were low quality. After this, 124 local masons have been trained in

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the improved design and construction techniques and the better use of tools and they in

their turn are training their apprentices. Accurate plans and estimates have been provided

for the masons and tools.

III.3 LOW COST HOUSING SCHEMES IN KARACHI

According to Pakistan Press International President General Pervez Musharraf has lauded

low cost housing schemes for people belonging to poor and middle class in Karachi and

emphasized these should be imitated throughout the country. State land should be utilized

for housing schemes to the poor people in the country. The residential plots were allotted

to people from poor and middle class in Taiser Town at a cost of Rs. 40,000.

III.3.1 PLANS LOW-COST HOUSING PROJECT IN TAYSIR TOWN

The City District Government Karachi in collaboration with a US-based private company

will construct low-cost housing scheme at Taiser Town on no profit no loss basis to

provide living facilities to the citizens on affordable rates. The important thing of this

scheme is that these houses will be earthquake resistant. The city Nazim stated that these

houses would be completed by 2007. Plots 80 square yards have already been allotted to

people.

To help people get the loan HBFC is contributing equally. A company named Sarid has

offered government t to build low cost houses. A model low cost house has been built.

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This project is low cost in true means that it is resistant to earthquakes and costs Rs. 600

per square foot. The total house completion time is from three to four weeks. The

insulated walls would be used in these.

III.3.2 KCCI

Karachi Chamber of Commerce and Industry (KCCI) have urged the government to

announce 80 to 200 sq. yards low cost housing schemes in Karachi. The committee

appreciated allowing import of cement to bring down cement prices locally. However, the

committee expressed dismay on the utilization of the scheme and alleged that

manufactures of cement were the main importers of cement. The committee also alleged

that the manufacturers as well as importers of cement are holding the stock to control

cement prices in future.

III.4 HBFC TO DEVELOP, FINANCE-HOUSING SCHEMES OF ABOUT

1000 HOUSES IN GWADAR

House Building Finance Corporation (HBFC) Tuesday has signed an agreement with

inked three with Gwadar Development Authority (GDA) and District Nazim Gwadar for

design, development and construction of small and medium-cost housing scheme on 63

acres land in Gwadar. HBFC is going to finance GDA's Low-cost Housing Scheme,

being developed for providing shelter to needy and poor people primary the fishermen.

III.5 WHAT TO BE DONE?

 New, planned sectors should be opened in Islamabad.

 The gap between demand and house availability has to be brought down.

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  Expansion of capital territory

 Encouragement of privet builders and developers in a proper way

 Low cost housing to be encouraged all over the country

 Different models, keeping in view the family size and income of people, should be

built.

 People should be continuously informed about low cost housing

 Meetings and seminars to be arranged all over the country to inform common

man about low cost material and good technology.

IV.1 ANALYTICAL SUMMARY PART 1

By low cost housing we meant build an economic and low cost housing for low income

families and individuals. Erecting a house has been a dream for many years, but now it

has become a basic necessity. Low cost houses are designed in keeping mind the low

income groups of society. In the global context, housing has become a fundamental

industry linked to the standard of living. There are certain barriers to this. World

population has increased but land is fixed. Developing countries are facing more housing

problems than developed countries. Poor planning, lack of resources, poor infrastructure

and increased cost of construction material has proved to be a barrier for erecting a house.

The ultimate solution to housing problem is to introduce low cost housing. Instead of

traditional brick and cement, cheap and durable construction material would be used. Not

only this, the wood cement based material satisfy safety and health needs, as well as

cultural preferences. These models also provide security against decay and fungi.

IV.2 ANALYTICAL SUMMARY PART 2

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The big challenges towards a low cost house are lack of resources, insufficient funds time

constraint a shortage of skills.

A low cost house should not only be cheap, but also be prone to natural disasters like

floods, rain, earthquakes and cyclones. Some barriers to low cost housing include low

income of people, low purchasing power, and local construction firms’ issues, increased

costs of land, less awareness among public about housing scheme, high interest rates on

mortgage financing, deficiency of low cost building material and increased urbanization.

Next the government has to play a positive role in making public aware about low cost

housing schemes. The government can achieve this by providing direct funding and

development, strategic partnerships, community development programs and encouraging

innovation. A low cost house has certain goals:

 Preserving and expanding the supply of good-quality housing units

 Making housing more affordable and more readily available

 Promoting racial and economic diversity in residential neighborhoods

Helping households build wealth

Strengthening families linking housing with essential supportive services

Promoting balanced city growth

The government should adopt certain steps like:

 To inform builders throughout the country about low cost housing and its

effectiveness

 To organize workshops of latest innovative construction technologies and

encourage new ideas.

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  To disseminate up-to-date information, knowledge and experience on design,

production, certification and application of low cost and innovative housing

materials

 To present the country wise effective ness of low cost housing strategies

 To organize seminars and workshops to discuss low cost housing on a

geographical perspective

 To call foreign experts from different construction and building companies in

order to know their ideas and plans

 To inform common man about the low cost materials through media

 To invite engineers, design experts and architects from all over the world

 To inform general public, especially low income groups about the pros and

cons of low cost housing

 To provide training to masons all over the country in the improved designs and

tools and techniques

 Government should provide subsidies

 Long term investments should be enabled.

 Resources available in abundant should be utilized.

 The overall cost of housing delivery process should be radically lowered.

The specific cost factors prevail in design, operational and maintenance of a low cost

house.

IV.3 ANALYTICAL SUMMARY PART 3

Bahria town came as an n entrepreneur. Their project Awami villas is a practical example

of this. The role of HBFC is also promoting. They have introduced schemes like GHAR

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AASAAN. Orangi is another low cost housing project for residents of Karachi.

According to Pakistan Press International President General Pervez Musharraf has lauded

low cost housing schemes for people belonging to poor and middle class in Karachi and

emphasized these should be replicated throughout the country. Also, The City District

Government Karachi in collaboration with a US-based private company will construct

low-cost housing scheme at Taiser Town on no profit no loss basis to provide living

facilities to the citizens on affordable rates. House Building Finance Corporation (HBFC)

Tuesday has signed an agreement with inked three with Gwadar Development Authority

(GDA) and District Nazim Gwadar for design, development and construction of small

and medium-cost housing scheme on 63 acres land in Gwadar.

V CONCLUSION

From the above discussion, it is clear that a house is not a luxury but a basic necessity.

Owning a house has become everybody’s dream. Therefore, it is the responsibility of an

individual to plan and design a house, keeping in view his income level, size of family

and other resources available to him. It is the responsibility of government or state to

inform him on the type of low and resistant material available in abundant. It is also the

responsibility of government to keep common man updated about different low and

cheap housing technology. Different low cost housing schemes are being launched in

most of the countries. So the individuals must keep themselves updated on new housing

schemes. It is again the duty of the government to make sure that that low cost housing

schemes are resistant to natural disasters and have a useful life of about thirty to thirty-

five years. Again, the government should make sure that the new low cost housing

schemes work accordingly and aim to provide good health and sanitation to its residents.

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