Houses across 40 nations, whether they are developed or developing, are more unaffordable than they have ever been since 2008. While in India, housing prices increased at the rate of 59%, in other developing countries, they increased at the rate of 50 to 148%. Actually, a significant rise in housing development costs (total amount spent for acquiring land, building structures and project financing) is leading to increased housing prices, i.e. the market value or purchase price of the dwelling unit. The increased housing costs, particularly when combined with shortages, drastically lower housing affordability for low-income group (LIG). India faces a significant shortfall in affordable housing, with the estimated deficit rising by 54% between 2012 (18.78 million) and 2018 (29 million), resulting in a 95.62% shortage for LIG and EWS.

Lack of a diverse housing financing system, increasing construction cost and lack of coordination between different levels of organisational stakeholders in various phases of housing development are the main reasons why housing programs and initiatives fail. The challenges of housing delivery, particularly in ensuring effective implementation and reaching out to the marginalized groups such as LIGs are problems of the both metropolitan cities as well as tier&ndashII cities. Many researchers suggested eliminating the constraints of affordable housing by involving a variety of activities between different levels of organisational stakeholders, like government, market, and civil society, in the housing development process.

This research develops a framework for reducing housing development costs for LIG through collaborative activities of organisational stakeholders at different phases of housing development. This research aims to identify various factors and attributes determining housing development costs. It also identifies organisational stakeholders, their resources and level of contribution in various collaborative activities at different phases of housing development cost reduction for LIG housing units in tier-II cities in India (Rourkela, Bhubaneswar and Ranchi). This framework intends to provide a mechanism for reducing housing development costs for LIG housing by integrating the capacity of organisational stakeholders through collaboration.