In the absence of concise conceptualization of planning and land use management strategies, the s... more In the absence of concise conceptualization of planning and land use management strategies, the scope of their discussion in literature has been wide, with different nomenclature for almost similar concepts. This paper attempts to provide an overview of the models and tools used for land management by grouping these models and tools, known by different names across disciplines and countries, along a primarily urban or periurban development continuum. The objective is to streamline the discussion on land management strategies on the basis of principles on which models and tools are based rather than their nomenclature.
Housing mortgage finance in India is constrained by the maximum loan-to-cost ratio and installmen... more Housing mortgage finance in India is constrained by the maximum loan-to-cost ratio and installment income ratio conditions imposed by housing finance companies. The typical reason for this behaviour is that the market for the sharing of risk in mortgage lending is not yet fully developed. Mortgage insurance plays an important role in developing this market. The objective of this paper is to present a case for mortgage insurance market in India. This paper develops a mortgage premium structure framework in which mortgage insurers charge an insurance premium that equates losses to revenue. This paper also models mortgage termination due to prepayment and defaults. We contend that the termination of mortgage in housing is not as `ruthless?as OPM theory would suggest, primarily because households are not financiers in the `stricter sense? We have used the Cox proportional hazard model to analyze prepayment and default of mortgage behaviour in India. The results indicate that financial c...
Housing policy formulation should be informed by a careful understanding of the behaviour of the ... more Housing policy formulation should be informed by a careful understanding of the behaviour of the housing market, as reflected by housing demand. Such basic information is important, not only for improved project design but also for the development of better sector-wide policies. Housing is a complex outcome of cultural, economic and regulatory environment. Consistent estimates of price and income elasticity of housing demand are prerequisites for effective policy design. Results, from earlier studies on Japanese housing markets, are inconclusive and the estimates of price and income elasticity of housing demand vary over a wide range. It may be argued that measuring the volume of housing services as housing expenditure, as is done in previous research, essentially ignores the heterogeneity, and for large number of policy purposes like impact of tax on tenure choice, choice between owning and renting etc., the distribution of housing consumption into qualitatively different categorie...
This paper aims to develop a conceptual framework within which “housing and basic infrastructure ... more This paper aims to develop a conceptual framework within which “housing and basic infrastructure services for all” can be delivered in urban India. Despite high and sustained GDP growth rates over the past two decades, the vast majority of Indians continue to live in substandard housing with few basic amenities or pay disproportionately high portions of their income for formal housing and services like water. The framework developed here stresses integration – an alignment of the economic, legal, planning, financial systems and a clear mapping of requirements – tenure mix, associated infrastructure in order to ensure targeted and productive investment. Above all it highlights that that housing cannot be thought of in isolation but must be provided along with infrastructure – physical and social. Against the elements highlighted in the framework, the paper evaluates the current issues and challenges in the Indian urban housing market and makes recommendations for tools and approaches...
Mumbai has around 2.5 Square Km of land in the heart of the city (8 Km from the CBD) which is own... more Mumbai has around 2.5 Square Km of land in the heart of the city (8 Km from the CBD) which is owned by 58 cotton textile mills. Since mid seventies a number of these mills have been declared as sick (loss making) units. Urban Land (Ceiling and Holding) Act 1976 prevented owners to sell the land for real estate development. During the last five years, a number of land transactions and large scale commercial real estate development on mill land have taken place. This paper analyzes the institutional and economic factors that have caused the transformation of mill lands from a centre of economic activity to a degenerated belt and again, post 1991, as a regenerated area of economic activities. Sequential changes in the Development Control regulations since 1991 have allowed mill owners to exploit the commercial potential of the land either through a sale or development by themselves. In this context, this paper analyses the impact of development on mill lands on other micromarkets in Mu...
This research is inspired from the existing challenges of compulsory acquisition of land by publi... more This research is inspired from the existing challenges of compulsory acquisition of land by public authorities in Scotland. The exercise of the power of compulsory acquisition is a common instrument of land procurement for public projects and is often resisted, by the affected landowners, for various reasons. There is continuous effort at policy level to harmonise the procedure and derive fairer compensation mechanism for the loss of land and property rights. The first step towards achieving this bigger objective will be to understand the role of land and property in the overall well-being of an individual landowner. In this context, this research identifies and creates a list of valuable ‘functionings’ of individual landowners who have suffered losses due to compulsory acquisition, servitude and severance under various public projects in Scotland.The method of Qualitative Content Analysis is applied to analyse case reports prepared by the Lands Tribunal for Scotland. In depth analy...
Development Paradigms for Urban Housing in BRICS Countries, 2016
Following discussions in earlier chapters this one adds another dimension by utilizing Sen’s capa... more Following discussions in earlier chapters this one adds another dimension by utilizing Sen’s capability approach to ask whether housing as a good has created capability for individuals (defined by the functionings of being well-sheltered and having financial security) in the countries studied. Depriving individuals of these functionings is a failure on the part of the country's institutions, which have not been able to convert the characteristics of housing good into capability. This also allows countries to be compared, institutional arrangements analyzed and outcomes evaluated. This chapter illustrates how all these countries have failed to provide a well-sheltered society. The nature of this deprivation, though, differs: in Brazil it is measured as housing quantity and quality; in Russia in terms of housing quality; India shows deprivation in the form of quantity and quality; while China's problems relate to affordability and quality.
Development Paradigms for Urban Housing in BRICS Countries, 2016
Brazil has a shortage of seven million housing units, made greater by the large proportion of hou... more Brazil has a shortage of seven million housing units, made greater by the large proportion of households living in informal housing. Historical political and economic ideological developments have had a profound impact on housing in the country. The political trajectory, rapid socio-cultural transformation from rural to urban society, economic development and institutional changes have all contributed to the state of housing. This chapter presents a comprehensive review of housing in Brazil and critically analyzes housing outcomes and institutions. What is important in the case of Brazil is that the country’s institutional capacity to provide housing and the development of housing programs and supporting legislation at state and municipal levels have improved over time. New programs allocating subsidies for the poor have been set up. Legal, technical, and institutional capabilities have been enhanced and public participation plays a greater role in the allocation of funds for the poor. These measures ensure that social housing policy now contributes more strongly toward enhancing living conditions in the country.
Abstract This research was inspired by the challenges faced by landowners seeking adequate compen... more Abstract This research was inspired by the challenges faced by landowners seeking adequate compensation for all their losses following the compulsory acquisition of land by public authorities in Scotland. This research uses Sen’s ‘capability approach’ and argues that the well-being contribution of land extends beyond its market value and therefore compensation payable following compulsory acquisition should include these other losses. The aim of this research is to identify the valuable functionings (or usefulness) of land from the perspective of the existing landowners. The functionings which contribute to their well-being can be both financial and non-financial and should be appropriately compensated. This research identifies and creates a list of valuable ‘functionings’ of individual landowners who have suffered losses due to compulsory acquisition, servitude and severance under various public projects in Scotland. Qualitative Content Analysis is applied to analyse case reports prepared by the Lands Tribunal for Scotland. In-depth analysis of 19 relevant cases is performed with the use of NVIVO software and reveals a list of 15 different functionings of land. Results show that financial functionings are the most frequently discussed at the Lands Tribunal. The debate on the loss of financial benefits from expected and planned development on land in the near future is the most debated topic by the landowners.
This paper examines the ability of buyers to afford and upgrade to private housing using the expe... more This paper examines the ability of buyers to afford and upgrade to private housing using the experience in land scarce Singapore as a case study. The concepts of the “threshold buyer?and “threshold upgrader?are introduced to construct an operational inter-temporal model of affordability and upward mobility, taking into consideration income, mortgage rates, prices of public housing flats and the legislative/financing framework in Singapore. The theoretical private property price computed by the upward mobility model is the lower bound dictated by affordability and cash outlay considerations such that the buyer/upgrader is no better or worse off arising from changes in the relevant factors over time. The model is empirically tested to evaluate the theoretical underpinnings as well as the ability of the model to predict private property price. Finally, the paper examines the implications for housing ownership policy in a wider context.
A rapid increase in land and property values has been one of the driving forces of urban ecosyste... more A rapid increase in land and property values has been one of the driving forces of urban ecosystem development in many countries. This phenomenon has presented project proponents/policymakers with multiple options and associated challenges, nudging them to configure or incorporate elements of land-based financing in their policies and legislations. Specifically, the Government of India and various state governments have sought to monetize land through diverse instruments, for augmenting the financial viability of infrastructure and area development projects. This paper compares Indian central and state infrastructure policies/acts with regard to land monetization strategies. The analysis indicates that policies and legislations are taking a turn towards promoting land monetization mechanisms as a financing tool for cities and project implementation agencies. However, the approach is cautiously used and implementation is often seen to fall behind actual project timelines. Based on th...
PurposeThis paper examines the extent of the short-run relationship between Australian real estat... more PurposeThis paper examines the extent of the short-run relationship between Australian real estate investment trusts (A-REITs) and direct real estate returns on both a commercial property sector and a prime and secondary grade basis, i.e. a subsector basis.Design/methodology/approachTwo-step methodology is used. First, we identify the dynamic interdependencies between A-REITs and each commercial property subsector to determine whether the returns of A-REITs lead each subsector or vice versa. Second, short-run deviations between these asset returns are estimated by measuring their individual response behaviours to changes in key economic and financial market factors that are expected to influence these returns.FindingsResults suggest that each subsector shares a unique relationship to A-REITs, given each prime and secondary grade commercial property return series varies in behaviour. Some property subsector returns can be predicted by movements in A-REIT returns, whereas returns for ...
Purpose The purpose of this paper is to understand the factors that affect the performance of pro... more Purpose The purpose of this paper is to understand the factors that affect the performance of projects being implemented on the public-private partnership (PPP) framework, with specific reference to urban drinking water sector in India. Design/methodology/approach A listing of factors that have a bearing on project performance have been developed based on a review of the literature. Through a survey, seven factors that are relevant to the Indian context were determined. Interviews were then conducted across a cross-section of government agencies, financial institutions, development agencies, private sector entities and consultants to understand the relative importance of these attributes. The analytical hierarchy process was used to develop relative weights of these factors. Findings Ranking and relative weights of the factors in descending order are stakeholder consent and support for water PPP projects (22.1 percent), appropriate project structure (17.4 percent), availability of r...
International Journal of Housing Markets and Analysis
PurposeHomeownership has been the main focus of housing policies in most countries. Typical means... more PurposeHomeownership has been the main focus of housing policies in most countries. Typical means that households use to achieve homeownership is to take out a loan and supplement this with accumulated wealth for a downpayment. This paper aims to analyze the mortgage demand behavior of households in the UK, Australia and Japan.Design/methodology/approachUsing three panel data sets, HILDA for Australia, KHPS for Japan and USS for the UK, the paper estimates three equations using ordinary least squares: mortgage demand function, housing demand function and initial loan to value ratio function.FindingsThough homeownership is a preferred tenure and the mortgages are “recourse” loans, housing markets in these three countries operate in different mortgage market institutional structures. Results indicate that income elasticity of mortgage demand differ despite income elasticity of housing demand being similar. Different mortgage institutions in countries that pose constraints for borrower...
In the absence of concise conceptualization of planning and land use management strategies, the s... more In the absence of concise conceptualization of planning and land use management strategies, the scope of their discussion in literature has been wide, with different nomenclature for almost similar concepts. This paper attempts to provide an overview of the models and tools used for land management by grouping these models and tools, known by different names across disciplines and countries, along a primarily urban or periurban development continuum. The objective is to streamline the discussion on land management strategies on the basis of principles on which models and tools are based rather than their nomenclature.
Housing mortgage finance in India is constrained by the maximum loan-to-cost ratio and installmen... more Housing mortgage finance in India is constrained by the maximum loan-to-cost ratio and installment income ratio conditions imposed by housing finance companies. The typical reason for this behaviour is that the market for the sharing of risk in mortgage lending is not yet fully developed. Mortgage insurance plays an important role in developing this market. The objective of this paper is to present a case for mortgage insurance market in India. This paper develops a mortgage premium structure framework in which mortgage insurers charge an insurance premium that equates losses to revenue. This paper also models mortgage termination due to prepayment and defaults. We contend that the termination of mortgage in housing is not as `ruthless?as OPM theory would suggest, primarily because households are not financiers in the `stricter sense? We have used the Cox proportional hazard model to analyze prepayment and default of mortgage behaviour in India. The results indicate that financial c...
Housing policy formulation should be informed by a careful understanding of the behaviour of the ... more Housing policy formulation should be informed by a careful understanding of the behaviour of the housing market, as reflected by housing demand. Such basic information is important, not only for improved project design but also for the development of better sector-wide policies. Housing is a complex outcome of cultural, economic and regulatory environment. Consistent estimates of price and income elasticity of housing demand are prerequisites for effective policy design. Results, from earlier studies on Japanese housing markets, are inconclusive and the estimates of price and income elasticity of housing demand vary over a wide range. It may be argued that measuring the volume of housing services as housing expenditure, as is done in previous research, essentially ignores the heterogeneity, and for large number of policy purposes like impact of tax on tenure choice, choice between owning and renting etc., the distribution of housing consumption into qualitatively different categorie...
This paper aims to develop a conceptual framework within which “housing and basic infrastructure ... more This paper aims to develop a conceptual framework within which “housing and basic infrastructure services for all” can be delivered in urban India. Despite high and sustained GDP growth rates over the past two decades, the vast majority of Indians continue to live in substandard housing with few basic amenities or pay disproportionately high portions of their income for formal housing and services like water. The framework developed here stresses integration – an alignment of the economic, legal, planning, financial systems and a clear mapping of requirements – tenure mix, associated infrastructure in order to ensure targeted and productive investment. Above all it highlights that that housing cannot be thought of in isolation but must be provided along with infrastructure – physical and social. Against the elements highlighted in the framework, the paper evaluates the current issues and challenges in the Indian urban housing market and makes recommendations for tools and approaches...
Mumbai has around 2.5 Square Km of land in the heart of the city (8 Km from the CBD) which is own... more Mumbai has around 2.5 Square Km of land in the heart of the city (8 Km from the CBD) which is owned by 58 cotton textile mills. Since mid seventies a number of these mills have been declared as sick (loss making) units. Urban Land (Ceiling and Holding) Act 1976 prevented owners to sell the land for real estate development. During the last five years, a number of land transactions and large scale commercial real estate development on mill land have taken place. This paper analyzes the institutional and economic factors that have caused the transformation of mill lands from a centre of economic activity to a degenerated belt and again, post 1991, as a regenerated area of economic activities. Sequential changes in the Development Control regulations since 1991 have allowed mill owners to exploit the commercial potential of the land either through a sale or development by themselves. In this context, this paper analyses the impact of development on mill lands on other micromarkets in Mu...
This research is inspired from the existing challenges of compulsory acquisition of land by publi... more This research is inspired from the existing challenges of compulsory acquisition of land by public authorities in Scotland. The exercise of the power of compulsory acquisition is a common instrument of land procurement for public projects and is often resisted, by the affected landowners, for various reasons. There is continuous effort at policy level to harmonise the procedure and derive fairer compensation mechanism for the loss of land and property rights. The first step towards achieving this bigger objective will be to understand the role of land and property in the overall well-being of an individual landowner. In this context, this research identifies and creates a list of valuable ‘functionings’ of individual landowners who have suffered losses due to compulsory acquisition, servitude and severance under various public projects in Scotland.The method of Qualitative Content Analysis is applied to analyse case reports prepared by the Lands Tribunal for Scotland. In depth analy...
Development Paradigms for Urban Housing in BRICS Countries, 2016
Following discussions in earlier chapters this one adds another dimension by utilizing Sen’s capa... more Following discussions in earlier chapters this one adds another dimension by utilizing Sen’s capability approach to ask whether housing as a good has created capability for individuals (defined by the functionings of being well-sheltered and having financial security) in the countries studied. Depriving individuals of these functionings is a failure on the part of the country's institutions, which have not been able to convert the characteristics of housing good into capability. This also allows countries to be compared, institutional arrangements analyzed and outcomes evaluated. This chapter illustrates how all these countries have failed to provide a well-sheltered society. The nature of this deprivation, though, differs: in Brazil it is measured as housing quantity and quality; in Russia in terms of housing quality; India shows deprivation in the form of quantity and quality; while China's problems relate to affordability and quality.
Development Paradigms for Urban Housing in BRICS Countries, 2016
Brazil has a shortage of seven million housing units, made greater by the large proportion of hou... more Brazil has a shortage of seven million housing units, made greater by the large proportion of households living in informal housing. Historical political and economic ideological developments have had a profound impact on housing in the country. The political trajectory, rapid socio-cultural transformation from rural to urban society, economic development and institutional changes have all contributed to the state of housing. This chapter presents a comprehensive review of housing in Brazil and critically analyzes housing outcomes and institutions. What is important in the case of Brazil is that the country’s institutional capacity to provide housing and the development of housing programs and supporting legislation at state and municipal levels have improved over time. New programs allocating subsidies for the poor have been set up. Legal, technical, and institutional capabilities have been enhanced and public participation plays a greater role in the allocation of funds for the poor. These measures ensure that social housing policy now contributes more strongly toward enhancing living conditions in the country.
Abstract This research was inspired by the challenges faced by landowners seeking adequate compen... more Abstract This research was inspired by the challenges faced by landowners seeking adequate compensation for all their losses following the compulsory acquisition of land by public authorities in Scotland. This research uses Sen’s ‘capability approach’ and argues that the well-being contribution of land extends beyond its market value and therefore compensation payable following compulsory acquisition should include these other losses. The aim of this research is to identify the valuable functionings (or usefulness) of land from the perspective of the existing landowners. The functionings which contribute to their well-being can be both financial and non-financial and should be appropriately compensated. This research identifies and creates a list of valuable ‘functionings’ of individual landowners who have suffered losses due to compulsory acquisition, servitude and severance under various public projects in Scotland. Qualitative Content Analysis is applied to analyse case reports prepared by the Lands Tribunal for Scotland. In-depth analysis of 19 relevant cases is performed with the use of NVIVO software and reveals a list of 15 different functionings of land. Results show that financial functionings are the most frequently discussed at the Lands Tribunal. The debate on the loss of financial benefits from expected and planned development on land in the near future is the most debated topic by the landowners.
This paper examines the ability of buyers to afford and upgrade to private housing using the expe... more This paper examines the ability of buyers to afford and upgrade to private housing using the experience in land scarce Singapore as a case study. The concepts of the “threshold buyer?and “threshold upgrader?are introduced to construct an operational inter-temporal model of affordability and upward mobility, taking into consideration income, mortgage rates, prices of public housing flats and the legislative/financing framework in Singapore. The theoretical private property price computed by the upward mobility model is the lower bound dictated by affordability and cash outlay considerations such that the buyer/upgrader is no better or worse off arising from changes in the relevant factors over time. The model is empirically tested to evaluate the theoretical underpinnings as well as the ability of the model to predict private property price. Finally, the paper examines the implications for housing ownership policy in a wider context.
A rapid increase in land and property values has been one of the driving forces of urban ecosyste... more A rapid increase in land and property values has been one of the driving forces of urban ecosystem development in many countries. This phenomenon has presented project proponents/policymakers with multiple options and associated challenges, nudging them to configure or incorporate elements of land-based financing in their policies and legislations. Specifically, the Government of India and various state governments have sought to monetize land through diverse instruments, for augmenting the financial viability of infrastructure and area development projects. This paper compares Indian central and state infrastructure policies/acts with regard to land monetization strategies. The analysis indicates that policies and legislations are taking a turn towards promoting land monetization mechanisms as a financing tool for cities and project implementation agencies. However, the approach is cautiously used and implementation is often seen to fall behind actual project timelines. Based on th...
PurposeThis paper examines the extent of the short-run relationship between Australian real estat... more PurposeThis paper examines the extent of the short-run relationship between Australian real estate investment trusts (A-REITs) and direct real estate returns on both a commercial property sector and a prime and secondary grade basis, i.e. a subsector basis.Design/methodology/approachTwo-step methodology is used. First, we identify the dynamic interdependencies between A-REITs and each commercial property subsector to determine whether the returns of A-REITs lead each subsector or vice versa. Second, short-run deviations between these asset returns are estimated by measuring their individual response behaviours to changes in key economic and financial market factors that are expected to influence these returns.FindingsResults suggest that each subsector shares a unique relationship to A-REITs, given each prime and secondary grade commercial property return series varies in behaviour. Some property subsector returns can be predicted by movements in A-REIT returns, whereas returns for ...
Purpose The purpose of this paper is to understand the factors that affect the performance of pro... more Purpose The purpose of this paper is to understand the factors that affect the performance of projects being implemented on the public-private partnership (PPP) framework, with specific reference to urban drinking water sector in India. Design/methodology/approach A listing of factors that have a bearing on project performance have been developed based on a review of the literature. Through a survey, seven factors that are relevant to the Indian context were determined. Interviews were then conducted across a cross-section of government agencies, financial institutions, development agencies, private sector entities and consultants to understand the relative importance of these attributes. The analytical hierarchy process was used to develop relative weights of these factors. Findings Ranking and relative weights of the factors in descending order are stakeholder consent and support for water PPP projects (22.1 percent), appropriate project structure (17.4 percent), availability of r...
International Journal of Housing Markets and Analysis
PurposeHomeownership has been the main focus of housing policies in most countries. Typical means... more PurposeHomeownership has been the main focus of housing policies in most countries. Typical means that households use to achieve homeownership is to take out a loan and supplement this with accumulated wealth for a downpayment. This paper aims to analyze the mortgage demand behavior of households in the UK, Australia and Japan.Design/methodology/approachUsing three panel data sets, HILDA for Australia, KHPS for Japan and USS for the UK, the paper estimates three equations using ordinary least squares: mortgage demand function, housing demand function and initial loan to value ratio function.FindingsThough homeownership is a preferred tenure and the mortgages are “recourse” loans, housing markets in these three countries operate in different mortgage market institutional structures. Results indicate that income elasticity of mortgage demand differ despite income elasticity of housing demand being similar. Different mortgage institutions in countries that pose constraints for borrower...
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Papers by Piyush Tiwari