"Shelter within my reach" : medium rise apartment housing for the middle income group in Karachi, Pakistan

Abstract

This thesis identifies the project development processes of medium rise (five storied or less) apartment housing built by the private formal sector, catering to the middle income groups in Karachi, Pakistan. Middle income housing production is constrained due to the lack of support and a passive attitude adopted by the local public agencies, leaving a limited number of private builders as the key suppliers for this group. The study aims to understand both the builder's and the buyer's perspectives, the bottlenecks and limitations presented by the broader framework within which the particular housing delivery process takes place and its design implications on the apartment product. Through analyzing the housing market conditions, the research reviews the shifts and trends in the supply of medium rise apartments produced by the private builders. It argues that in a situation of rationed supply of publicly owned serviced land, under- developed housing finance systems, procedural predicaments and con·uptive practices of public agencies, medium rise housing- which was an affordable housing choice for the middle classes earlier- has moved upmarket to produce larger and more expensive units for the upper income categories. This process has accelerated in the face of slow growth in real incomes and high rate of inflation in Pakistan. Due to high risks faced by the private builders as well as high demand, the builders have set abnormally large profit margins. As a result prices of apartments have considerably increased causing them to be beyond the reach of most middle class families. The housing market in Karachi is thus increasingly becoming unresponsive to the middle class. Unfavorable market conditions are also discouraging entry of new entrepreneurs in the housing industry, and have led to the builders' perception that de-regulation of land-use and standards is the solution. The research concludes that provision of serviced land, increase in credit facilities and procedural improvements pertaining to acquiring permits and infrastructure connections, would create a dynamic process of housing development for the middle income. The study connects this development process to the design of the housing product. The research indicates that the current housing problems of the middle income group are a symptom of market failure in the housing sector. By analyzing case examples of middle income apartment schemes in the city and the response of residents and builders, changes and ideas for generating new approaches that deal more effectively with the quantitative and qualitative aspects of apartment housing are suggested for the middle class.