One of the basic problems of any developing country is to provide shelter to the low income groups. The housing does not mean shelter only but it includes the services related to it i.e. sanitation, sewerage, street conditions and water etc. The government policies related to the provision of such facilities have greater impact on the quality of life and standard of living. The demand for housing reflects the willingness to pay for a set of housing services. The house is a set of many goods; the number of bedrooms, bathrooms, quality of local services and utilities, tidiness of the neighborhood and quality of the local environment [Katherine (2006)].
The difference in value may be due to housing and neighborhood characteristics with amenity or dis-amenity values. “It happened that a house with different structure in different locations might have same price and a similar house in different location have different value. It means that price structure reflects two separate though related sets of influences which for convenience are termed dwelling and location factors.” [Wilkinson (1973)]. “Location has always been an important determinant of property’s value and the land close to the city centre has the highest value.” [James and Beth (2002)]. Before modern transportation, most people preferred to live close to work. Now days, it is the quality of the area which attracts the residents, workers and business managers to settle. Amenities (green field, fresh air etc.) and the dis-amenity (noise, dust, drain etc.) often influence the decisions of household. In developing countries, it is experienced that the cause of low demand for environmental goods is poverty that is why households do not attach weight to amenity and ignore risk factor for health even when they were aware of the threat and perils for health and hygiene conditions.