Naya Housing Scheme

[DustyCow]

First of here's a good analysis of the situation from a great YouTube channel. He discusses the economics and positive aspects of the initiative in detail.

From the Naya Pakistan website:

The key features for Naya Pakistan is to improve the housing situation for Pakistanis.

There is a shortfall of over 10 million houses, and every year we are adding to this backlog.

This government intends to promote access to housing to the people of Pakistan and jump start the housing sector.

The salient features include:

• Increase buying power by providing loans of longer tenure fifteen to twenty years.

• Reduce cost by standardizing design and specifications.

• Reduce cost by significantly cutting down the approval time.

• Develop new communities with access to infrastructure.

• Reduce the upfront cost of builders by providing them land in installments and minimum time for approvals and infrastructure before start of construction.

• Provide project loans to builders so that they can complete housing project in the shortest possible time thus improving their ROI and at the same time reduce the investment period thus reducing the overall cost for the end consumer the main objective of this scheme

It is envisaged that by the above measures the cost would be 15 to 20% lower than the current market price and by providing long term loans we would enhance the number of people who can afford housing by 100% in the first three years. The current situation is about half a million people can afford to buy homes and apartments every year.

 

[Rusty]

BUILD UP

Korea did something genious, the designed one appartment building, then copy pasted them all over the country.

This way you only have to engineer a building once, and you can mass produce all the parts and keep the costs super low.

 

[war&peace]

Where is the money?

 

[DustyCow]

Seems to me there will be some good auxillary benefits from this initiative also:

1) Cataloging of the federal governments land across Pakistan. There's thousands of acres of land owned by the government through out the country but no formal attempt to catalogue it has been made this far.

2) Establishing of a land back and recovery methods for loans that get defaulted. Such recovery methods will also increase the amount of loans the bank gives out in any given fiscal year and help boost business activities as owners no longer have to rely soley on their own capital for investment.

3) Private industries related to real estate (Builders, Painters, Furnishing) will get a huge boost. This will help stimulate the economy in the short and long run.

 

[H!TchHiker]

There is no money for such type of projects....

 

[Sulman Badshah]

Where is the money?

There is no money for such type of projects....

They are not free.. Land might be free by govt but Apartments cost to be funded by allotees themselves (through installments)

 

[DustyCow]

BUILD UP

Korea did something genious, the designed one appartment building, then copy pasted them all over the country.

This way you only have to engineer a building once, and you can mass produce all the parts and keep the costs super low.

This is a good point Rusty. You'll note they've included a similar clause in their policy in an attempt to lower cost. If you standardize the design the overall cost is reduced significantly.

Also given IK's recent vertical growth comments it is likely they might go for apartment buildings.

 

[war&peace]

They are not free.. Land might be free by govt but Apartments cost to be funded by allotees themselves (through installments)

But how the govt pay the development cost in advance?
Will the construction companies will invest and get paid when people pay back?

 

[Aumkar Thakur]

Better option would be to allow FDI in real estate instead of creating this type of township on your own. India allowed FDI in real estate in 2005 and since then there are so many township constructed all across India. Sell your land to foreign investors and let them do whatever they want.

 

[Sulman Badshah]

But how the govt pay the development cost in advance?
Will the construction companies will invest and get paid when people pay back?

They are not constructing all at once ... at first phase 135000 will be built

Better option would be to allow FDI in real estate instead of creating this type of township on your own. India allowed FDI in real estate in 2005 and since then there are so many township constructed all across India. Sell your land to foreign investors and let them do whatever they want.

FDI is allowed in township in Pakistan

 

[Indus Pakistan]

There is no money for such type of projects....

I think the idea is a revolvling fund. Build, sell, get money, build again, sell, build again etc. Use mass production methods by prefabing buildings. It would speed up construction by using Chinese technology which already has been tried/tested in building entire cities in China. This would also boost local industries and employment.

This is indeed a flagship project of PTI and if even they succeed by 50% it would be a great achievement. Fact is builders like Bahria only focus on the wealthy. The largest % of the ordinary people have been left out of what is a human right. Public housing projects are mark of every developed society. They all engaged in mass housing from UK, USA, France, South Korea, China etc.

Better option would be to allow FDI in real estate instead of creating this type of township on your own. India allowed FDI in real estate in 2005 and since then there are so many township constructed all across India. Sell your land to foreign investors and let them do whatever they want.

Works only for the well off. Public housing is needed for the bottom 30%. That is why you have huge slums in India. No private investor or builder is interested in catering to that demographic and you see the results. In Pakistan huge companies like Bahria are building entire cities but only for well off.

 

[war&peace]

On average there are 6-8 people per family so we can say between 30 to 40 million people will get accommodation in the end...which is a lot

6-8 per family = (2 parents, 2-4 kids, 2 grand parents)

They are not constructing all at once ... at first phase 135000 will be built

I think the idea is a revolvling fund. Build, sell, get money, build again, sell, build again etc

Yeah something like that...

 

[Aumkar Thakur]

They are not constructing all at once ... at first phase 135000 will be built


FDI is allowed in township in Pakistan

That's nice. I believe government should not take these types of project in their own hand because most government officials are corrupt and general public never get benefit out of it, instead government should tie up with multiple private company.

In India government is providing 50% of fund to private real estate developer for creating 1BHK flat for poor people (those who are below poverty line). Which make 1bhk flat 50% cheaper for BPL card holder.

 

[hasnainfirst]

I absolutely hate tall buildings and skyscrapers ...

 

[war&peace]

BUILD UP

Korea did something genious, the designed one appartment building, then copy pasted them all over the country.

This way you only have to engineer a building once, and you can mass produce all the parts and keep the costs super low.

But we have to follow the international safety standards for such tall buildings... also each area has different geology so it would be very important to consider it because all lands cannot take the load of such buildings without reinforcement.

I absolutely hate tall buildings and skyscrapers ...

Bhai, Like vs necessity... When you have 200 million people in a limited area, you need land for farming, forests, cattle, and open area for sports, schools etc, then you have to go vertical.