Barriers to Enhance Access to Affordable Housing in West Bank, Palestine: Perspectives of the Developers

Abstract

Affordable housing support from real estate developers is important for the growth of the housing sector anywhere in the world. Any absence of such support could give rise to hardships for low-income families. Understanding the level of awareness among such developers about the nature of affordable housing is thus crucial. In fact, a good understanding of the challenges that hinder their involvement in the production of affordable houses, and the policies required for enhancing their involvement are necessary for effective planning. They could support vulnerable low-income households and propel the provision of housing. This is indeed the case also in Palestine, where access to affordable housing is a pressing issue. This study examines the perspectives of the developers involved in the production of affordable houses in West Bank, Palestine. It employed a variety of tools: a questionnaire, a phone survey, interviews, and email correspondence to ascertain their level of understanding of the issue. 62 real estate companies affiliated with the Palestinian Union of Developers in the West Bank provided information. Findings reveal that 88.7% of the real estate companies have a good grasp of affordable housing concepts. Majority support the provision of affordable housing for the needy. However, 21% do not support any involvement in its production, citing limited government support. In fact, almost all the companies pointed out the difficulty in partnering with the government, weak infrastructure and high land prices as the major obstacles to their contribution to affordable housing projects. It reveals that they will be motivated if there are encouraging policies and regulations allowing an increase in the number of floors and building densities. Moreover, provision of government land and reductions of the minimum areas for the residential units will also motivate them. This paper points out that there is a need for a swift response to the requirements and opinions of these real estate companies. This will improve the performance of the real estate sector fostering increased investment, making affordable housing available in Palestine.