Private Low-Cost Housing and the Peri-Urban Frontier: The economics of building outside Indian cities
This paper examines the role that the private sector can play in the creation of low-cost housing stock in India. We use theoretical and empirical evidence to establish the optimality of locating low-cost housing projects in peri-urban areas, and illustrate this with a case study of a successful low-cost housing project in Shapar-Veraval district in Gujarat. We conclude by suggesting that an infrastructure subsidy for low-cost developments in peri-urban locations may spur investment and additionally make housing more accessible to low-income groups.