This presentation based on “Low-Income Housing Overview of Issues and Answers”

The world population is expected to reach between 7.9 to 10.9 billion by 2050
• By 2030, nearly 60% of the world’s population will be urban, and nearly ½ will comprise the urban poor living in poor habitats and in slums
• Urban growth rates are highest in the developing world, absorbing an average of 5 million new urban residents/month
Responsible for 95% of the world’s urban population growth
• Factors contributing to urban migration are greater economic growth, rising income levels, employment opportunities, immigrant workers, the occupational shift from agriculture to manufacturing and services, changing attitudes towards consumption and lifestyle, changing family culture, and shrinking household size.

Almost half of the World lives on less than $ 2.50 a day, and one in four people around the globe is below $ 80 a day.
• Worldwide, some 830 million people live in urban slums, and by 2020, it is estimated that the world slum population will cross 1 bn.
• Every second person on the globe lives in urban areas. Expected to reach more than three out of four (70%) by 2050
• Slum dwellers grew from 777mn to 830mn during 2000-2010.
• Positive factor: 227 million moved out of slums; doubling MDG goals
• The world needs 4,000 houses an hour to keep up with demand (UN-Habitat)
In view of this population and urbanization explosion
➢ The percentage of people without access to decent, stable housing is rising.
➢ Adequate housing is vitally important to the health of the world’s economies, communities, and populations. If we are to succeed in our fight against poverty, we must support the expansion of housing both as policy and practice for Socio-Economic Empowerment.

Asia-Pacific represents:
• 1/4th of the world’s population, including China nearly half of the world population
• Nearly ½ of the World’s Poor
• Awareness: Housing has become a popular political slogan.
• “Housing for all”;
• “Slum Free Cities”
• “Maang Raha hai har Insaan-Roti, Kapra, aur Makan” (Every human demands food, clothing, and shelter); etc.
• Delivery: In a few countries it is SOME, but in most there is NONE
• Each country in the region has its own geo-socio-economic parameters, while all face a common issue of “shelterless poor”

India: GOI Policy Initiatives, Monitor India initiatives, Role of Developer Industry, Role of Housing Regulator-NHB, HDFC etc.
• Mongolia: Ger area project sponsored by Japan Fund for Poverty Reduction (JFPR),
• Malaysia: Cagamas as a role model for Mortgage Refinance, Securitization and Liquidity Facility Institution
• Sri Lanka: Women’s Bank program,
• Thailand: CODI and Baan Mankong program
• Indonesia: Subsidized Home Mortgage Program
• Bangladesh: Grameen Bank and Islamic Bank of BD
• Pakistan: Lyari Resettlement and Rehabilitation Project, KKB-4 Project etc
• Afghanistan: Initiatives by Central Bank of Afghanistan, rural micro housing program of First Micro Finance Bank, Role of MISFA
• Singapore and Hong Kong have unique challenges of land scarcity and offer innovative and effective answers. Singapore’s Role of CPF-Housing and HDA

Fifty-seven (57) countries are OIC members out of 193 UN members on the global scene
• The World population has crossed 7.3 Bn by 2013, whereas the population of IDB member Countries was 1.6 Bn in 2009 (23%). Muslim population on the Globe is 2 Bn plus.
• The Muslim world represents 1 of 4 humans on the planet.
• Nearly the same share in a number of countries.
• Irony is that it represents 1 of 2 poor on the planet.
• An acute challenge of widening demand/supply gap and rising housing backlog … leading to Social Unrest.
• Most of the housing backlog and short supply is in the low-income segment of the population.
• Population growth and urbanization are further compounding the existing huge backlog.
• Rising costs (land, construction, construction materials) are making housing unaffordable for the poor.

IDB/IRTI* study suggests housing needs of the Muslim World are about 8.2 mn units, nearly all in the Low-Income Segment. The estimate needs further analysis.
The breakdown is as follows:
– MENA 3.2 mn;
– Asia 2.7 mn; and
– Africa/others 2.3 mn.
• Shortage: Egypt 1.5 mn, Iraq 1.0 mn, Morocco 0.6 mn, Saudi Arabia 0.4 mn
• Significant oversupply in upscale or luxury housing only, while low income segments/ communities remain neglected
• Rapid urbanization is a major issue for low-income housing
• Need for new housing for 8 mn plus due to population growth is based on 5-5.5/HH and population growth rate of 2.8%
• Urbanization and population growth further increase the annual housing needs in major metropolitans
• On the other side, supply is 30-40% of new demand, all for the high-income segment.