1. Housing Market - Global Scene
- Pakistan

2. Housing - Global View
The problem of inadequate or nonexistent housing has reached crisis proportions globally. The world population passed 6 billion mark in 2001 and is expected to reach any where at 10 billion by 2050, according to the United Nations (UN) Population Fund. This sheer volume alone exerts enormous pressure to improve existing housing and create new homes.
First challenge - Population Explosion.
As the global population grows, rural areas around the world are emptying and mega cities springing up, usually as unregulated districts circling an older, more organized core.
Second challenge - Massive urbanization
According to the Washington, D.C.-based advocacy group Population Action International, as of 1996 (the latest figures available), approximately 52% of the total housing in Caracas, Venezuela, consisted of squatter settlements; in Darus Salaam, Tanzania, the figure was 49%, and in Karachi, Mumbai, Manila and some other Asian cities its about the same.
Third Challenge - Squatter settlements

3. Room Density Persons per Room
Pakistan & India
Turkey
China
U.S.A
Average 100 Countries 1.1
Source: U.N. (Habitat)

4. Source: The World Bank

6. HOUSING – a Critical Issue
Pakistan
HOUSING – a Critical Issue
Growing rate of Housing Demand in Urban areas % p.a.
Housing Units in the country million Ownership % million Rent free % million Rented % million
Units required for the population of million million
Shortfall of Housing Units million*
* Based on 1998 Survey.
* This Estimates that backlog may now be increased to 7.5 million

7. Annual Demand for Housing Contributing Factors
Population Growth
Previous Backlog
Depletion.

8. Housing Stock in Pakistan
Total Housing Stock Million Units
Urban %
Rural % Total : %
Overall Housing Stock comprised of :-
Kuccha Houses %
Semi Pucca houses %
Modern brick houses % Total : %

9. HOUSING – The Prime Issue
[Units per annum]
Additional Supply required ,000 ( Due to Population Growth )
Depletion of 1% p.a ,000
To meet backlog in 20 years ,000
New Housing Need ,200,000
Supply estimate ,000
Persistent Gap adding to backlog ,000
One third in urban housing 400,000

10. Housing Continuum Commercial Banks Market Housing HBFC (SMH) Social
Housing Finance Player
Market Segment
Income Distribution in %
Rs 1 Lac & above.
Commercial
Banks
High - High
1 %
Rs 5.0 & above
0.075
Rs 2.5 to Rs 5.0
High End
Rs.100,000
4 %
0.300
Market
Housing
HBFC
(SMH)
Upper Middle
Rs.25,001 to
Rs.50,000
Rs ~ 2.50
15 %
1.125
Rs 0.5 ~ 1.25
Lower Middle
Rs.10,001 to
Rs.25,000
20 %
1.500
HBFC & Social
Housing
Bank
Rs.4,001 to
Rs.10,000
Rs 0.20~Rs.0.50
Small
40 %
3.000
Social
Housing
Micro
Upto Rs.4,000
20 %
1.500
Rs 0.20
Income Distribution
Mortgage Affordability (Rupees in Million)
Housing Market
Housing Shortage * (In Million)
Per Capita Income Rs.5,000 per month
Minimum Wage Rate Rs.4,000 per month
* Total existing backlog is estimated at 7.5 Million units. The shortage in various income segments is assumed in the same proportion, as per income distribution pattern. However, actual shortage is much higher in low income segments as opposed to higher income segments.