The migration to the urban areas, particularly in developing countries poses a challenge on international, national and local policy making. In most developing countries the attempts to formalize markets have failed to provide the adequate housing for the ever-growing urban population. Self-help housing and squatting has long been seen as detrimental to sound urban development and planning. In last two decades it has been recognized that self-help housing has a great contribution towards providing a sufficient housing for the urban poor and “it is still the only architecture that works” (Turner, 1976) This form of housing is not only crucial for providing housing for the poor working in the informal sector but it also plays an important role in the urban economy. Without this informal settlements the local economy could not be competitive in the global context.
In the urban context the urban poverty is closely associated with spatial segregation; overcrowding, filth, unemployment, total absence of social services, malnutrition – this representation of poverty is only one-sided and represents only partial reality. To address the issues of urban poverty it is fundamental to recognize that housing needs to meet adequate living standards “as well as cultural definitions of security of tenure as an essential part of a decent standard of living”. Substandard informal housing has two major issues:1. lack of quality, infrastructure and space and 2. insecurity.
Current policies fail to recognize the importance of providing appropriate land for the housing. Evictions and relocation are justified by governments wanting to beautify and redevelop the cities. These schemes more often than not result in communities repopulation the vacated site. In the case of social housing, the immense expenditures on land and adherence to inappropriate building regulations make the resulting products unaffordable for the urban poor. Since the 70’s slum upgrading and upgrading sites and services are the major approaches to introduce participation and self-help housing into practical policies. It is more efficient to improve the existing settlements that to build new ones, yet the performance and scale of upgrading is disappointing. The upgrades face the inappropriate planning standards and building regulations which increase the public investment and limit the investment to single intervention. In addition the issue of land ownership is a major constrain to redevelopments. The land central to the city is usually to expensive to be populated by the urban poor resulting in relocations. The alternative locations are usually on the periphery, without the adequate transport links to the livelihoods. The prime locations come with the price tag, even the pavement dwellers in India have to pay regular fees to the policemen or syndicates. The informal market plays a significant role in providing housing to the poor. Houses built without permits with a substandard infrastructure and quality, by cutting corners and cost are the only affordable option for the poor. This kind of housing represents an opportunity for the occupant to incrementally improves the home, however the improvements also increase the value of the property which can increase the rent in case of rented properties.