A Tale of Two Cities: Rental Housing Sub- Markets in Informal Settlements of New and Old Hyderabad

The majority of the world’s population now live in cities (United Nations, 2014), and it has been projected that the largest contribution to urban growth is likely to come from the proliferation and expansion of informal settlements in African and Asian Cities (UNHabitat, 2016). Given the rate of growth, the sheer volume as well as the nature of urbanisation, the question of housing is not just critical but also increasingly complex. One of the critical gaps in our understanding of these phenomena relates to relative paucity of research on rental arrangements between landlords and tenants in informal settlements. This thesis addresses this critical gap, applying institutional analysis to the study of transactions between landlords and tenants in two informal settlements in Hyderabad, India. The research draws on fieldwork conducted between January 2014 and May 2015, that involved a survey of 137 households across the two settlements, as well as interviews with key informants and local experts. The innovative interdisciplinary framework adopted places the transaction at the centre of the analysis, and provides a strong theoretical basis for the identification of sets of rules that shape these. There were distinct differences found between the two settlements in terms of built environment, demographics and ethnic and religious identity that are linked to the specific histories of the settlements, and the impact of urban policy over the past two decades. There were also specific differences found pertaining to access to rental housing for different groups such as young men and middle aged women, though the role of gender in mediating these transactions was multi-faceted. The key finding of the research is that rental transactions in both sub-markets conform to abroad set of congruent and stable rules that are identified as the Kirayadar-Makandar relationship or institution, which specifies the rights and duties of landlords and tenants. The scope of the research precludes a discussion of the geographical boundaries of the institution