Informal Housing Marketsand Redvelopment

Abstract: World-wide, the population is increasing rapidly and so is the number of people residing informally. Hence the development of slums is increasingly becoming a rising problem. Consequently, the need to acknowledge the issue and to find sufficient solutions has enlarged. The informal settlement of Dharavi is facing a redevelopment and it is of importance to survey and analyse the current situation. Dharavi consists of an area that represents many informal settlements and its development is at present at an interesting stage, suitable for this research. By studying Dharavi useful information can be obtained and later applied to other areas and future redevelopment projects. There is an apparent lack of documented knowledge regarding the impact of slum redevelopment. In particular, this shortcoming concerns informal housing markets. The main purpose of this research was to acquire knowledge regarding the process of property development in informal settlements and to identify how such development would affect existing housing and rental markets. The purpose was fulfilled by conducting a case study and a complementary literature study. During the case study, information was mainly gathered through qualitative open-ended interviews with Dharavi inhabitants as well as local field experts. It has been found that a number of aspects regarding informal communities are affected upon redevelopment. Some of the most substantial changes concern the informal housing market, where juridical and financial changes are to be expected. Consequently, there are some positive as well as negative outcomes of such redevelopment. The major positive outcomes are improved housing standards and the creation of a healthier environment. The negative outcomes concern the likelihood of remaining in the area, the difficulties to retain a livelihood and thus the risk of new slum formation elsewhere.