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When assessing the mammoth housing problem, the draft National Housing Policy estimated that between 1981-2001, the backlog would be 233 lakh dwelling units (16.3 million units in rural areas and 7.0 million units in urban areas) and 638 lakh new dwelling units would be required to meet the incremental housing needs of the growing population. The total investment required during this period would be Rs.1, 90,000 crore at 1985 prices. This is one reason for the increase in investments in Real Estate in Kerala from not only the state but also from abroad.
At the beginning stages of the Seventh Five Year Plan, there was a shortage of almost 5.9 million houses in the urban areas. According to the conservative figures of the National Building Organization, by the year 2000 AD the housing shortage would be 9.3 million dwelling units in the rural areas. According to the conservative figures of the National Buildings Organization, by the year 2000, the housing shortage would be 9.3 million dwelling units in these areas.
Thus we can find that the gap between demand and supply is increasing instead of getting abridged. Consequently, the prices of developed landed properties and other services are increasing at a very rapid pace. The prices and rentals of built-up houses, commercial and residential properties are also escalating with each passing year.
Experts in the housing sector fear that without a sound matured real estate policy, the government’s efforts may not be goal-oriented. These apart, other constraints that the draft policy addressed itself to are also awaiting the final consent of the urban development experts. For one reason, it agreed that the Urban Land Ceiling and Regulation) Act in its present form of operation had frozen certain developments in the land market, pushed up land prices, increased corruption and in fact had not achieved the intended social purpose.