Providing quality, affordable housing for the low-Income sector in Pakistan
Ansaar Management Company (AMC), a Pakistan-based social enterprise, is tackling the lack of affordable housing in Pakistan. The company has joined the Business Call to Action (BCtA) with a commitment to build 5,000 new affordable housing units by 2020, providing high-quality homes to 35,000 low-income people. Focused on community self-reliance and sustainability, AMC aims to scale up its inclusive housing investments to achieve annual profits of US$8 million within ten years while building vibrant communities for nearly 200,000 people.
With its mission to provide safe, affordable homes to families who otherwise could not benefit from home ownership, AMC is poised to be the leader in this emerging market. The company's inclusive business model goes beyond low-cost housing construction to the development of ecologically sound, healthy and productive communities. Each unit AMC builds has access to clean drinking water, electricity and underground sewage. After the construction of new housing blocks, AMC stays involved in the community for five years to nurture new residents engagement and build their capacity.
The model works because AMC builds and sells 70 percent of its new residential units at or near cost, while selling the remaining prime and commercial plots at the market rate. Within 10 years, AMC expects to achieve annual profits of US$8 million by building healthy and sustainable communities for nearly 200,000 people.
Pakistan suffers from a severe shortage in housing, especially among low- and middle-income people. For decades, the Pakistani real estate sector has seen the rich amassing property while the majority of Pakistan's people are unable to purchase a home. As a result of the country's population boom and a lack of access to financing, the country lacks approximately 10 million affordable housing units. With a high level of rural-to-urban migration and a lack of affordable solutions for the new migrants, unplanned housing on uninhabited land in insecure and unhealthy conditions has become the norm.
Following extensive research, AMC developed an inclusive business model that aims to break this pattern, allowing low-income communities to acquire homes both for shelter and assets for their families future. The company is able to provide quality, affordable housing by forging relationships with lending institutions and designing all homes in cooperation with community members to ensure their needs are met. AMC also ensures that all civil works contractors hire contractors like masons, electricians, plumbers and labourers from within the local community whenever possible.
Each new neighborhood block comprises of roughly 25 homes situated around a park that is maintained by the homeowners. This design promotes a sense of community participation, reduces traffic and maximizes security; local water treatment plants allow recycled water to be used for the block's needs. AMC's continued involvement in new neighborhoods ensures that residents will be able access additional funds and make infrastructure improvements.
The company also understands that in Pakistani society, social status is as important as financial stability. For example, when contemplating potential marriage prospects, an independently owned home with secure land tenure is a significant consideration. In addition to the social benefits, homeowners can leverage their homes as collateral to obtain loans and improve their livelihoods.
By ensuring immediate occupancy of its affordable housing units, AMC's inclusive model creates demand for the remaining market-rate units. With its inclusive investments, company has already provided new housing to 3,000 individuals and aims to serve 35,000 in the next five years. This business model is not only proving to be sustainable, but replicable throughout Pakistan.