Walking through the slums of Mumbai is never an easy task. Rows on rows of corrugated tin shacks line the narrow streets, most of them rusted and seemingly on the verge of collapse.
Outside, upwards of a million other people too poor even for a shack live on the street among piles of garbage. There are so many of them that the sidewalks are nearly impassable.
They exist in the shadows of the Mumbai's apartment buildings, some glitzy enough to rival the famous addresses of Manhattan both in luxury and price. Others are more run-of-the-mill but still cost thousands of dollars a month just to rent.
Such is life in India's financial capital, where skyrocketing real estate prices have created two worlds in this city of 14 million people. Space now goes for a premium there as villagers continue to pour into a city that struggles to fit them all, making Mumbai among the most expensive places in the world to live.
But many in the city remain desperately poor, unable to afford a decent place to call home. Half the city's population still lives in slums, without proper access to water, healthcare and sanitation. They continue to live in squalor, untouched by India's economic success.
Housing prices there are usually directly quoted by size and can range anywhere from $25 to $2000 a square foot, with even the most basic accommodation costing around $15,000. That's a hefty price tag in a country where 80 per cent of people live on less than a dollar a day.
Even the national government, which usually downplays India's economic disparity, acknowledges the housing shortfall and admits the entire country is in need of 25 million more homes. The Ministry of Housing and Urban Poverty has vowed to act, but progress remains slow.
That is why the private sector is stepping up. The Monitor Group, a global management consulting firm, is leading the push for affordable housing. They've discovered that, even with Mumbai's real estate boom, inexpensive housing can still be made appealing for investors - if done properly.
"We started looking at development and realized there is an opportunity for market-based solutions for social change," explains Ashish Karamchandani, CEO of Monitor's India office.
Banks and developers have long been wary of investing in low income housing, worried they would not be able to sell many units. But by encouraging Indian companies to allow stable payroll deductions from their employees, while helping to finance loans through microcredit institutions, Monitor has found a way to ensure that even much of the city's poor can afford to buy a property.
"That fundamentally changed the economics," Karamchandani says.
And it's already paying off. Residents are thrilled about buying an apartment and plans are in the works for two housing units in Mumbai, as well as one in Western India.
Monitor's approach is one that others can learn from. From Rio to Shanghai, developing cities around the world lack affordable housing. Rural residents continue to pour into urban areas looking for jobs, only to find themselves without adequate shelter.
In China alone, 13 million people migrate to cities each year. Without proper housing, poverty becomes inevitable for them.
But as Karamchandani explains, financing is only the first step. Growing urban populations also need adequate services such as transportation and education to ensure sustainable living. Monitor is working to provide Mumbai's poor with just that.
"If you want to play in this field," he says, "you need to develop end-to-end solutions."
Advertisement