No housing projects for middle income group

[Naveed Yaseen]

By Samia Saleem

KARACHI: In the absence of funding from the government, it has become extremely difficult for the middle-income group to buy a home from among the housing projects that were recently launched in the city.

The economic downturn in the country has left very few people with the capacity to invest for their housing needs.

It is sad to note despite recent increase in new building projects across the country not much attention is being paid towards housing for the less privileged people.

Around 12 to 15 housing projects are underway in Karachi and a few more are being constructed in other cities. Most of the recent projects are targeting the well-off class as is judged by the prices.

The only lender to the middle and low-income groups - HBFC - is in the reconstruction phase. The current industry scenario also worries the local builders and stakeholders. “It is the responsibility of the government to provide shelter and homes to public. By not providing enough funds for house building to deserving people, the government is also toppling the building industry as it was on the basis of these funds that the builders used to start new projects,” said Farooq-uz-Zaman Khan, the Chairman of Association of Builders and Developers (ABAD).

“It is possible to even think of a long term saving plan for housing,” said Jawed, a worker belonging to the lower-income group. “I feel sad that I won’t be able to give a home to my children,” he added.

The high mark rates of the private banks have put housing finance out of common man reach. “I took a loan from a private bank and the mark-up almost doubled during economic downturn, now every month with no raise in salaries I have to literally walk empty pocket after paying the loan instalments. And if I don’t comply it will sum up to a very big amount further indebting me or resulting in foreclosure,” said Adnan, a shop owner at a local market.

Whereas, Umair is among those people who regret not getting a loan to procure a home, “I have been living in a rented home for about six years. The Rs18,000 per month rent I am paying could have been the instalment for my home.”

http://www.thenews.com.pk/daily_detail.asp?id=205999