The instinct to nurture a family is a natural human trait. One that transcends borders, economies, even cultures. It is a characteristic of human nature that prevails in the midst of even the direst of circumstances. Since time immemorial, man has manifested this protective quality in the form of a home-a place of refuge and security. In recent times, this has expanded to include the realisation of dreams and a sense of achievement. What has remained constant is the fact that housing is a basic need, an undeniable right for every human being.

It is for these reasons that housing is an integral measure of a country's development, and the way a society houses its people an important determinant of its development and progress. This is not a concept of the modern world, but finds its roots in ancient times. The cities of the Indus Valley Civilisation, Harappa and Mohenjodaro, are exemplary instances of the engineering excellence of the human race. At the same time, they were home to one of the most developed ancient civilisations, the knowledge of which is applicable to the world even today. This not only required a vision for future growth, but the desire that all should share in the income that was collectively earned.

This is a valuable history lesson that we seem to have somehow left behind in our classrooms. We are surrounded by technological advancements and economic progress, but still have to provide our citizens with the basic needs of food and shelter-a goal that we set for Independent India almost 60 years ago. At this juncture, there has emerged a critical need to reorganise the system and look beyond immediate solutions in order to succeed in providing affordable housing for all.

Rapid population growth and an increase in urbanisation have led to the proliferation of slums, which, though viewed negatively, are, in a way, a makeshift solution to a complex housing problem. As a result, India is witnessing an ever-increasing pressure on urban infrastructure and services. Studies reveal that we currently face a housing shortage of approximately 20 million units, half of which is urban and around 70 per cent of that belongs to the low-income segment. Our population is likely to cross 1.3 billion by 2020 and our urban population set to grow by 85 million over the next 10 years. An ASSOCHAM paper on real estate development has estimated that the demand for dwelling units will grow to 90 million by 2020, which would require a minimum investment of $890 billion (Rs 40,05,000 crore).

What seems like a double-edged sword is actually an opportunity for us, to overhaul a system that needs not only to solve urgent problems, but also prevent a repetition of the mistakes of the past. The challenge lies in fortifying the basic framework on which the housing sector is built. Four aspects need to be addressed-the financing model, regulations, infrastructure and knowledge creation-and all dealt with simultaneously, with a sense of urgency, if the efforts are to succeed.

Being able to afford a house is dependent on the repaying capacity of an individual, since that is the basic principle of providing financial support. While the operational aspects of the system have been streamlined, a critical point has yet to be addressed-the question of employment since it is the decisive factor that ensures earning. In order to enable the youth of our country to take full advantage of their capabilities, an equal emphasis will have to be given to education and health, which are directly related to employment growth.

As our population grows and the economy progresses, the demand for financial assistance will increase exponentially. In such a scenario, normal credit appraisal processes are not likely to provide sufficient checks in the process. The system will need to be much stronger, bringing into focus the role of independent credit rating agencies, which will be able to provide necessary and updated information regarding applicants. Such a system will not only contribute to transparency and control in disbursal, but will make it possible for legitimate applicants to access loans and other financial services promptly. In India, the setting up of CIBIL or Credit Information Bureau (India) Limited has been the first step, but a lot more needs to be done.

As formal housing markets evolve and strengthen in India, there still exists a large chunk of the population in rural and urban India that needs basic shelter, particularly the non-formal and self-employed low-income segments. This is a huge market opportunity that can be serviced by alternative financing methods. The Centenary Rural Development Bank (CRDB) in Uganda is, for instance, one of the few banks in the world dedicated to housing micro-finance. While financing the lower income segments, the bank tends to focus more on 'character and capacity' rather than 'collateral and capital'. In India too, over the past decade, a number of successful micro-finance institutions and NGOs have shown the path to the formal banking community. Experience has shown that repayment records are actually better in this category, nullifying the question of higher risk. What is required is the ability to be responsive to the specific needs of low-income clients and then finding ways to lend in a cost-effective way. These micro-finance initiatives not only provide easy and timely access to financial services, but also support livelihood generation through self-help. Moving such efforts to the mainstream could be the most efficient instrument of poverty alleviation in our country.

Evidently, the responsibility of creating housing within our cities and villages is one that needs to be shared by all stakeholders. On the regulatory front, the government needs to act on archaic laws and take objective decisions on issues like stamp duties, disorganised land records, FSI (floor space index) as well as tedious procedures and paperwork. Regular updation of records and data pertaining to real estate will help planners and developers create effective blueprints for the future. Concurrently, real estate professionals and citizens will need to contribute and work towards the re-planning process.

A recent development has been the launch of the Jawaharlal Nehru National Urban Renewal Mission by the Central government. The programme will provide Rs 5,500 crore in the first year alone to select cities for infrastructure development and provision of basic services. Furthermore, the Mission promises to address the problems of legal, systemic and procedural reforms and aims to align them to the contemporary needs of our cities and towns. It is this multi-pronged approach that is encouraging.

This is an approach required in urban planning as well. A shift in focus-from buildings to people-will enable a multi-dimensional approach, which encompasses quality of living and physical development. What is required is a focus on providing an integrated delivery of services, and not just housing development. CEMEX, a leading global producer and marketer of quality cement products, through its "Patrimonio Hoy" programme in Mexico organises low-income families into self-financing cells that facilitate and expedite the typical home-building process. The programme not only provides them with the products they need, but also offers them guaranteed prices and technical assistance, including an architect, so they can optimise space and reduce waste.

Long-term planning in housing will be incomplete without the enabling factor of technology. To have all transaction related information accessible at multiple points with the help of computerised registration records, will lead to a greater degree of transparency and accountability in land transactions. On the consumer side, the internet has already become a platform for real estate transactions and the concept of e-housing is not difficult to envisage. Imagine homes that generate more energy than they consume, software that controls every household appliance and robots that ensure your dinner is ready to be served-even before you step inside.

The establishment of a new framework in the housing sector is a task that is being discussed at several levels. A point to keep in mind is the long-term nature of the undertaking at hand. This is why knowledge creation and dissemination becomes a necessary objective. As does professionalism and accountability, especially since decisions taken here are set to influence multiple lives. Corporate governance is an area that needs to be embedded in the entire development process, resulting in an environment free from red tapism and bureaucratic obstacles. Governance will also need to permeate the supply side, with developers working towards transparency in their projects, with regards to quality and prices. A home is a lifelong personal investment, and it is for this reason that issues such as guarantees on homes will form part of the basic principles of housing projects.

Progress will need to be supported by the creation of a knowledge pool of professionals and consultants, who will have a qualified and objective outlook and the vision to look beyond obvious solutions. This has created an urgent need to develop a structured and formal curriculum for real estate and urban planning in India, be it in architecture, management or entrepreneurship. Today's academicians will have to groom a generation of thinkers and implementers, who will be taught in institutions that set high standards and even higher goals. It is a vision like this that will ultimately result in the provision of affordable and quality housing for all.

The importance of the housing and real estate sector in India can be judged by the estimate that for every rupee invested in the construction of houses, Re 0.78 is added to the GDP of the country. The linkages run deep and progress in this area will enable growth in various others at a faster pace, ultimately creating demand, improving quality and setting standards-all in all, boosting the economy.

One thing is clear-solutions will require a participatory approach, with governments and communities involving themselves in the creation of housing solutions. Strong local governments that can manage urban planning, boast the fiscal strength and possess the ability to enforce what they think will make the difference. Developers will have to adopt an enabling role, working together with governments to translate regulations into quality housing, and using resources effectively to ensure that people derive maximum benefit.

My vision for India in 2020 includes planned, clean cities with basic infrastructure in place, affordable and energy efficient homes, a dynamic regulatory and legal framework, and most of all, concerned citizens involved in the running of their cities and towns. It is said, "Rome was not built in a day". Not surprising, since the ancient Romans were down-to-earth realists. While the rich had gracious homes, the others had apartments, some big, others small. The important point was that there was a roof over every head. Is this too much to ask? I do not think so. It is time for us to make this possible, not only for ourselves and the people we know, but for every Indian for whom affordable quality housing is an undeniable right. How much time it takes, is entirely in our hands.

The author is Chairman of HDFC Ltd