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Faced with shortage of residential properties in India, government is contemplating to take private developers and builders on board to meet the constant demand of residential properties in cities and towns. In fact government is planning, in consultation with industry leaders and civil society organizations to form a public-private partnership (PPP) platform.

As per ministry’s estimate total shortage of residential properties in India is to the tune of 24.71 million units. Out of this, 17.9 million units are required for the EWS and 6.29 million in the low income group (LIG) whereas middle income group (MIG), it falls short by 0.45 million.

Now question arises, what has constrained the government to make a PPP platform? The reply is quite simple that the demand for residential property is constantly increasing whereas the supply ratio of residential properties in India is very low which resulted sky-rocketing of price of the same. Moreover, the builders and financers were hand-in-glove which added fuel to the fire and this resulted formation of PPP platform. Apart from it, the government increased the home loan interest rates as well as imposed certain restrictions on realty IPOs and pre-launching etc. to come over the spiraling prices of residential properties in India.

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