There’s an interesting article in the New York Times by Anand Giridharadas about the way in which the Indian real estate boom has been affecting slums in Mumbai.

As many readers may be aware, Mumbai shantytowns are unusual in that their residents are often effectively permanent, and many people living there actually prefer the chaotic environment to the cramped enclosed spaces that are sometimes made available to them via various housing/resettlement schemes. The old method of clearing slums consisted of mainly bulldozing them and then going away, at which point the former residents would simply come back and rebuild. It was, in effect, both ineffectual and unfair. In recent years, the pace of slum-clearing has quickened, as the government has hopes of “Shanghaization” in support of “Vision Mumbai” (see this Frontline article for more).

But now there is a new method, where private developers are resettling slum dwellers into tower apartments they build and give away for free to residents. In exchange, they get to develop the remainder of the land any way they want:

Under a government program that is unusual in slums the world over, investors both here and from abroad are doing what was once left to philanthropists: giving slum dwellers new apartments free of charge.

Builders raze entire slums and use part of the land for tenement houses to shelter the former residents. The apartments are 225 square feet, the size of a typical shanty here. In return, the developer wins the right to build lucrative towers on the rest of the land, and pays nothing but the cost of resettlement.

Investors are eager to build these homes. “The moment you put them in a tower, you’re releasing 90 percent of the land,” said Pranay Vakil, chairman of the Indian arm of Knight Frank, a global real estate consulting firm.

So far, 100,000 apartments have been built in Mumbai, formerly known as Bombay, housing 600,000 people, said Debashish Chakrabarty, a civil servant who runs the city’s Slum Rehabilitation Authority. (link)

There are some concerns about this approach that are outlined in the Times article (read the whole thing), but at first glance this seems like a significant improvement over how things are normally done in Mumbai. The slum-dwellers aren’t forced out of the area, nor are they forced to agree to resettlement plans (70% of the established residents have to approve the plan before it is enacted).

What do people think? Can this work? Does it seem like it might really improve the living situations of slum dwellers? Can there really be such a thing as a business-friendly approach to slum resettlement that is also fair to the lower middle class and working class people who currently live in Mumbai’s slums?