Constraints affecting the efficiency of the urban residential land market in developing countries: a case study of India

Access to serviced land for housing is one of the major problems faced by practically all developing countries. In most cities of developing countries, the urban poor and even the middle-income group often have to step outside the formal land market to gain access to land and housing. Generally, in cities of developing countries the informal land market is much bigger than the formal market. To improve the operation of the formal land market it is necessary to understand the constraints that are preventing it from operating efficiently. It was found that finance, policies, regulation, laws and other instruments formulated to improve the efficiency of the land market have often themselves become constraints requiring change. It is suggested that to overcome these constraints it will be necessary for governments to recognise the informal market and work with it, rather than ignore or oppose it as at present.