The Contradictions in Enabling Private Developers of Affordable Housing: A Cautionary Case from Ahmedabad, India

Abstract

Through a case study of a private developer of housing in India, this paper critically examines the policy advice of enabling markets and market-based actors to provide affordable housing in developing countries. In this case, after receiving public sector help, the developer stopped constructing housing for low-income groups. The paper argues for a more cautious, circumspect and varied approach because enabling strategies focused on market actors can produce highly uncertain outcomes. In addition, it emphasises that policy-makers need a better understanding of how the informal and formal sectors can overlap. Enabling informal developers can be even trickier because public support can reduce their flexibility and incentives, as well as impacting on the expectations and opportunities of the home-buyers.