BAKU, Azerbaijan, May 21. Systematically resolving the global affordable housing deficit requires looking beyond traditional financial underwriting instruments to actively expand broader access pathways, including the strategic scaling of the rental housing sector and the comprehensive master-planning of municipal infrastructure grids, Srinivas Sampath, Director for Water and Urban Development at the Asian Development Bank (ADB), said, Trend reports.
He made the remark during a session titled "A New Deal for Housing Finance" held within the framework of the 13th session of the World Urban Forum (WUF13) in Baku.
According to him, the architecture of any effective housing policy hinges strictly upon the specific socioeconomic demographics of the target population, particularly when engineering solutions for highly vulnerable segments. He noted that low-income populations require structured state support that extends far beyond simple cash transfers; instead, it demands the holistic design of residential settlements that seamlessly integrate spatial urban planning, mass transit transportation networks, and foundational social infrastructure.
Sampath highlighted historical precedents within Public-Private Partnership (PPP) frameworks, pointing out that shifting an excessive operational or financial burden onto private developers routinely drove aggregate project expenditures several times higher than initial government projections. This mismatch, he explained, underscores the non-negotiable necessity of direct state capital expenditure injection into primary baseline infrastructure to systematically de-risk developments and maximize project viability. He noted that even when land parcels enter the market fully equipped with utility infrastructure lines, their final baseline costs frequently remain completely out of reach for a substantial portion of the population.
The ADB director concurrently directed sharp focus toward the critical necessity of developing rental housing as an independent, fully formalized segment of the residential market. According to him, institutionalized rental structures operate as a vital baseline solution for internal migrants and urban workers who lack the necessary capital accumulation to secure property titles or navigate traditional mortgage underwriting channels. He reported that across multiple sovereign states within the Asian region—including India, the Philippines, Indonesia, and Vietnam—the deliberate expansion of rental housing frameworks has solidified into a primary anchor of national housing policy.
Moreover, Sampath stated that the ADB, in direct alignment with the World Bank, is actively implementing joint initiatives to capitalize specialized rental housing funds. He cited ongoing operations across the Indian state of Tamil Nadu as a prime example, where these synchronized funds back targeted residential projects engineered specifically for industrial laborers, migrant workforces, and other vulnerable urban populations.
"Deploying these structural financial mechanisms allows governments to substantially expand the net volume of affordable options while progressively optimizing the overarching supply matrix of municipal real estate markets," Sampath stated.
"The international community must execute a decisive shift away from a narrow, isolated focus on homeownership financing, pivoting instead toward a comprehensive model engineered to maximize baseline housing accessibility across both metropolitan grids and rural districts", the ADB director concluded.
Today marks the fifth day of WUF13 in Baku.
The first day included a ministerial meeting dedicated to the New Urban Agenda, a ministerial roundtable, assemblies for women and civil society, business sessions, and discussions on urban prosperity. An official ceremony marking the raising of the UN and Azerbaijani flags also took place.
The second day stood out for the inaugural Leaders' Summit, featuring high-level discussions on the global housing crisis, urbanization policy, and urban resilience. Concurrently, the opening of the Mexico City pavilion took place, serving as a significant platform for expanding cooperation with the Latin American region and preparing for WUF14.
The third day of WUF13 featured a comprehensive program of events covering the global housing crisis, the formation of safe and inclusive cities, climate resilience, artificial intelligence and urban governance, green urbanization, social equity, and sustainable transport.
One of the highlights of the third day was the signing of a sister-city memorandum between the Azerbaijani city of Shusha and the Turkish city of Trabzon.
The fourth day of WUF13 featured a broad program of events dedicated to urbanization, climate change, inclusive urban development, housing policy, and sustainable governance.
One of the important events of the UN Special Program for the Economies of Central Asia (SPECA) Cities Forum, held on the fourth day, was the announcement of Almaty’s official accession to the “Declaration of Intent on the Establishment of the SPECA Smart Climate-Resilient Cities Forum.”
Also, for the first time in WUF history and at Azerbaijan’s initiative, the “WUF13 NGO Forum: Global Partnership and Decision-Making” was held.
WUF13, which has attracted more than 40,000 registered participants from 182 countries, will continue until May 22. Held under the theme “Housing the world: Safe and resilient cities and communities,” the forum brings together governments, international organizations, experts, and representatives of civil society to strengthen global cooperation in the field of sustainable urban development.
