New Launch - India Real Estate Report 2026.

What is the Insitu Slum Rehabilitation Scheme?

In-Situ Slum Rehabilitation is a development model where existing slum residents are rehabilitated into new permanent housing built on the same land they currently occupy, funded partly through cross-subsidization from sale of free-market housing on the same plot.

How the Scheme Works

  • Developer rehabilitates slum dwellers into free tenements on the same site
  • Remaining free-sale component sold on the open market to fund the project
  • Government transfers development rights to incentivize developer participation

Benefits of the Model

  • Provides permanent housing without displacing communities from their location
  • Utilizes existing urban land rather than developing greenfield sites
  • Cross-subsidization reduces public funding requirements

Challenges in Practice

  • Complex stakeholder management with slum residents and political interests
  • Legal disputes over eligibility and cut-off dates for beneficiaries
  • Project timelines often extended by consent and litigation challenges

In-Situ Slum Rehabilitation offers a pragmatic urban renewal model that balances housing provision with community continuity, though its successful implementation requires careful planning, transparent processes, and sustained political commitment.

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