Mr. Chinnaiyan watches closely as his team of masons carefully lays bricks in place. The walls of a new home are rising steadily, just as they have in the 300+ houses he has built over the years. “I used to do all the work with my own hands,” he says. “Now, I guide my workers, making sure everything is done right. But the feeling is the same—building a home means building someone’s future.”  

For over two decades, Chinnaiyan has worked in construction. He started as a helper, carrying bricks, mixing mortar, and learning the craft from older masons. Years of hard work turned him into a skilled mason, and eventually, he became a supervisor, leading a team of between dozens of workers. 

His construction company, Aishwarya Constructions, is named after his daughter. “Initially, I named it SPA Constructions, but after she was born, I changed it,” he says. “She is my biggest inspiration.”

Through his company, he has helped countless families build homes, ensuring they have a strong foundation—both literally and figuratively. 

The Changing Landscape of Construction

One of the biggest changes Chinnaiyan has seen in his career is the shift in building materials. Traditionally, river sand was the preferred choice for construction. “People believed it was the best, simply because it’s been used for generations,” he explains.  

But sourcing river sand has become increasingly difficult. Illegal mining has stripped riverbeds, leading to environmental disasters like flooding, erosion, and destruction of natural habitats. Governments have tightened restrictions, and as a result, river sand prices have skyrocketed. 

Alternatives were needed. Among these alternatives was manufactured sand, or M-sand, a material produced by crushing hard stones into fine aggregates that mimic the properties of river sand. Technically sound and environmentally sustainable, M-sand emerged as a promising option.

That’s where Aruna Blue Metals, a company founded by K. Senthil Kumar, stepped in. The company has been working to promote M-sand as a better alternative to river sand. “We saw the crisis coming,” says Senthil Kumar, CEO of Aruna Blue Metals.

When too much sand is taken from rivers, it weakens the river bed and erodes river banks and makes it harder for the ground to absorb water. Moreover, without enough sand, rivers can’t slow down water flow, leading to sudden and severe flooding especially during heavy rains. 

In Tamil Nadu, excessive river sand mining has deepened riverbeds and damaged natural drainage systems, making floods worse. For example, the Thamirabarani and Palar rivers have experienced bed deepening by up to 15 meters over two decades due to extensive sand extraction. In 2015, Tamil Nadu experienced devastating floods that affected more than 4 million people and resulted in enormous economic loss. 

These events underscore the critical need for sustainable alternatives like M-sand in construction to mitigate the adverse effects of sand mining and reduce the vulnerability of communities to flooding.

“We knew Tamil Nadu needed a sustainable, high-quality sand alternative, but breaking into the market and mainly direct customers wasn’t easy,” says Senthil Kumar, CEO of Aruna Blue Metals.

What was the biggest challenge of Aruna Blue Metals?

Convincing individual home builders and small contractors to switch. 

Most of Aruna’s early success came from selling M-sand to large developers, but the real impact would come from reaching everyday people—the families building their own homes

That’s when the Terwilliger Center for Innovation in Shelter (TCIS), supported by Habitat for Humanity International and Hilti Foundation, stepped in. Their partnership with Aruna Blue Metals helped address key challenges in promoting M-sand, ensuring that more people had access to affordable and sustainable building materials.

Educating Masons and Contractors About the Quality and Benefits of M-Sand

Many workers in the construction industry, including masons and contractors, were skeptical about M-sand. They believed that river sand was superior simply because it had been used for generations.  

Old habits die hard. “Many builders were reluctant to switch,” admits Mr. Chinnaiyan from his own experience from the ground. “Even when M-sand is cheaper and more consistent, people hesitated. They don’t trust what they don’t know.”  

However, TCIS helped Aruna conduct training sessions, demonstrations, and outreach programs to change this perception. They worked with local masons, contractors, and engineers to explain how M-sand is produced, its consistency in quality, and its advantages over river sand. 

These sessions reassured workers that M-sand was not just a cheaper alternative but a reliable and high-quality material for construction.

Expanding the Market Beyond Big Developers to Reach Individual Homeowners and Small-Scale Builders

Initially, Aruna’s primary customers were large developers who bought materials in bulk. However, the real impact of M-sand would be felt at the individual level—by families building their own homes and small contractors working on local projects. 

TCIS supported Aruna in shifting its business model to cater to these customers. They helped establish distribution networks, connect with retailers who sold to individuals, and raise awareness among first-time home builders. 

This expansion meant that even those building a single home could now access M-sand easily.  

Streamlining Supply Chains to Make M-Sand More Available and Affordable in Local Markets

One of the key barriers to M-sand adoption was availability. Even when people wanted to switch, they often couldn’t find M-sand suppliers nearby.

TCIS worked with Aruna to improve logistics, ensuring M-sand reached more local markets at a competitive price. This included identifying new distribution hubs, reducing transportation costs, and improving the overall supply chain. As a result, M-sand became not only a sustainable alternative but also a more accessible and cost-effective option for everyday people.

Through these efforts, TCIS and Aruna were able to transform the construction landscape—helping masons like Chinnaiyan build more homes, giving families an affordable way to achieve homeownership, and reducing the environmental damage caused by river sand mining.

The results were truly transformative. “With TCIS’s support, our M-sand sales grew by 25% in just a few months. Before 2019, our business was primarily focused on selling to other businesses, with only 20% of our sales coming from individual customers. Today, that’s completely flipped—80% of our sales now come from individuals and smaller buyers, while only 20% comes from other businesses. This shift happened thanks to our partnership with TCIS,” says Senthil Kumar. 

“More importantly, we saw a significant change in trust—homeowners, masons, and small contractors started choosing M-sand over traditional river sand which saves them precious money.”

A Sustainable Future for Housing

The acceptance of M-sand is about both affordability and sustainability. With fewer homes relying on river sand, the damage to India’s rivers can be slowed. “People don’t realize that every truckload of sand taken from a river is making future floods worse,” says Senthil Kumar. “Switching to M-sand doesn’t just save money—it protects our environment.”  

With organizations like Hilti Foundation and TCIS championing innovation in shelter, the future of housing in India is changing. As M-sand becomes the norm, more families will be able to afford quality homes and India’s rivers will have a chance to recover. 

Standing at the construction site, watching his workers put the final touches on a new home, Chinnaiyan smiles. “This house will stand for generations,” he says. “And that’s what matters.”  

One home at a time, India is building towards a stronger, more sustainable future.

TCIS and the Hilti Foundation

The Hilti Foundation supports Habitat for Humanity’s Terwilliger Center for Innovation in Shelter (TCIS) to bring affordable, sustainable housing solutions to low-income families. Together, they work to develop and introduce practical, market-based products that can improve living conditions for underserved communities. Focusing on three pilot regions—Peru (construction services), India (heat-reflective coatings), and the Philippines (walls and foundations)—the initiative aims to prove that these solutions can succeed in real-world conditions. In India, for instance, the partnership is making strong progress, helping families access cooling roof coatings that reduce indoor temperatures and improve comfort in hot climates (read more on the initiative here) or build houses with the artificial sand that is both sustainable and more effective making safe and decent houses and home for affordable for people. 

Europe is facing a troubling situation—while millions struggle with housing insecurity, many buildings remain empty. With 30 million homes in Europe sitting vacant and 900,000 people homeless each night, the need for solutions is urgent. Adding to the crisis, the building sector is responsible for up to 35% of Europe’s energy-related CO₂ emissions. Tackling both the housing shortage and climate concerns requires innovative action.  

Ana Carolina Gomes, Associate Director for Strategy and Operations at Habitat for Humanity International, is leading efforts to address this gap. At the World Urban Forum organized by UN-Habitat in November 2024, she outlined Habitat for Humanity’s plan to repurpose vacant buildings—a strategy that combines social impact with environmental responsibility. The goal is to increase affordable housing while also reducing carbon emissions.  

A proven model for sustainable housing solutions  

Habitat for Humanity’s approach builds on research-backed strategies and demonstration projects that support policy change. The process follows a structured approach:  

• research and data collection – gathering reliable data to push for policy changes. 
• demonstration projects – refurbishing empty spaces to show practical, scalable solutions. 
• stakeholder collaboration – working with governments, industry leaders, and financial institutions to create lasting change. 
• advocacy for policy change – engaging with policymakers to integrate sustainable housing solutions into national programs.  

This method ensures that solutions are not just theoretical but have been tested in real-world conditions.  

From the UK to Poland - Expanding the model  

The first version of this model started in the UK, where Habitat for Humanity Great Britain, with help from donors mainly M&G, renovated empty buildings in London. The project successfully turned vacant properties into homes and created toolkits to help local governments implement similar projects.  

Next, the project moved to Poland, where the Social Rental Agency model was introduced. Unlike in Western Europe, where rental markets are more structured, Central and Eastern Europe still faces housing systems influenced by the post-Soviet era. With less than 5% of the housing stock being affordable, innovative solutions are needed.  

Social Rental Agencies act as intermediaries, connecting private property owners with people in need of affordable housing. This model ensures sustainable housing management while preventing newly refurbished properties from becoming segregated, low-income areas. Instead, a focus on social cohesion promotes diverse tenant communities.  

A flagship project  

Building on these successes, Habitat for Humanity launched the Empty Spaces to Homes initiative, a flagship program supported by Laudes foundation and M&G, aimed at identifying scalable financial solutions. Through this initiative, several housing units will be renovated to demonstrate cost-effective, climate-friendly ways to repurpose vacant buildings.  

Key outcomes of the project include:  

• financial innovation – researching market-based funding models to ensure long-term scalability. 
• policy advocacy – Working with local and national governments to encourage the reuse of vacant properties. 
• carbon impact assessment – measuring CO₂ savings from repurposed buildings to align with EU climate goals.   

Advocacy at the EU level

Beyond local efforts, Habitat for Humanity is pushing for EU-wide reforms to make repurposing vacant buildings a central part of Europe’s housing policy. Their advocacy focuses on:  

1. A unified definition of vacant real estate – standardizing definitions across EU countries for more reliable data. 
2. Comprehensive mapping of vacant properties – conducting extensive research to identify available spaces. 
3. Awareness campaigns – promoting the environmental and social benefits of reusing empty properties. 
4. Strategic EU funding – directing resources from existing programs to speed up the conversion of vacant buildings into affordable homes.  

A path forward

As Ana Carolina Gomes emphasizes, solving Europe’s housing crisis requires collective action. Governments, businesses, and civil society must work together to transform empty spaces into homes. By using market-based solutions, building partnerships, and pushing for policy change, Habitat for Humanity is showing that sustainable, affordable housing solutions are possible.  

The vision is clear: a future where no home is left empty while people remain without shelter. With the right strategies and collaboration, Europe can close the housing gap and fight climate change—one repurposed building at a time.  

Read our manifesto on opportunities for the European Union for 2024-2029.  

Also, read the manifesto for Practical Policies for a Just and Resilient Built Environment by the Laudes Foundation Coalition.  

Last year, Habitat for Humanity International had the opportunity to participate in the United Nations Economic Commission for Europe (UN-ECE) Forum of Mayors in Geneva, Switzerland. This high-level event brought together representatives from 40 national governments, local authorities, and housing and climate experts from across the continent to explore sustainable urban solutions. We joined the forum to present one of our most transformative initiatives—Empty Spaces to Homes—a project that reimagines vacant buildings as a key part of solving Europe’s housing and climate crises.

Across Europe, 30 million buildings sit vacant while nearly 900,000 people experience homelessness each night. This stark contrast reveals both a significant problem and a tremendous opportunity. Habitat for Humanity’s Empty Spaces to Homes project, supported by Laudes Foundation and M&G, is addressing these challenges by transforming vacant buildings into sustainable, affordable housing. Rather than constructing new homes that contribute to environmental harm, the project revitalizes abandoned properties, reducing waste and tackling two urgent issues: the housing crisis and the building sector’s carbon footprint, which accounts for 35% of the EU’s energy-related emissions.

Bringing the vision to life: success in the UK and Poland

The initial phase of this project has already yielded impressive results in the UK and Poland. 

In the UK, with generous support from M&G as a main donor, the initiative has expanded beyond just constructing homes. It’s also focused on building partnerships, engaging local communities, and influencing public policy. Since its inception in 2019, by 2023 the UK project had completed critical research, forged key partnerships, and delivered its first housing projects. 

In Poland, the focus has been on collaborating with Social Rental Agencies to connect landlords with tenants in need of affordable housing. This model has proven particularly effective in Central and Eastern Europe, where the large-scale privatization of housing in the 1990s reduced the availability of public housing options. These pilot programs are laying the groundwork for broader, long-term change.

Taking the message global

Habitat for Humanity International’s participation at the UN-ECE conference in Geneva offered a unique platform to present the Empty Spaces to Homes initiative to decision-makers from 40 governments, major European cities, and climate and housing experts. These influential figures play key roles in shaping the future of housing policy across Europe. By presenting the project to such an esteemed audience, Gyorgy Sumeghy, representing Habitat for Humanity, amplified the message that Europe’s vacant buildings are not just eyesores—they’re valuable assets capable of addressing two pressing challenges: the housing crisis and climate change.

This presentation provided a powerful platform to advocate for scalable solutions that transform vacant buildings into homes, reduce carbon emissions, and help build more inclusive communities. The conference sparked vital conversations about the policy changes and long-term support needed to scale initiatives like Empty Spaces to Homes. This marked a significant step toward ensuring the project’s impact spans across Europe, shaping national policies and promoting the adoption of similar solutions continent-wide.

A call for policy change

To maximize this impact, Habitat for Humanity is advocating for key policy changes at the EU level, including:

• establishing a clear definition of “vacant real estate” to streamline data collection and decision-making.
• mapping Europe’s vacant properties to pinpoint where housing solutions are most needed.
• launching campaigns to raise awareness about the environmental and social benefits of repurposing empty buildings.
• allocating funding from existing EU programs to support these initiatives.

Changing how we view housing

Empty Spaces to Homes challenges the widely held belief that new construction is the only solution to housing shortages. Instead, it promotes a paradigm shift in how we view vacant buildings—not as problems, but as untapped resources ready for transformation into homes. 

The message is clear: Europe’s empty buildings are not liabilities—they’re opportunities. By embracing this vision, we can solve the housing crisis, reduce carbon emissions, and create inclusive, sustainable communities for the future.

For many low-income families and small businesses in Kenya, a single disaster—such as a fire or flood—can mean financial ruin. Shockingly, 35% of Kenyans have lost homes, businesses, or property due to fire, floods, theft, or eviction in the last two years, yet few have access to property insurance to protect their assets.

Across Africa, only 4.5% of people with microinsurance have property coverage, compared to 52% for life insurance and 22% for health insurance. This disparity leaves millions exposed to financial shocks, highlighting the often overlooked faced by low-income families and small businesses. 

Without adequate insurance, rebuilding after disasters is a slow and uncertain process, keeping families and businesses in a cycle of economic vulnerability.

Recognizing this gap, Habitat for Humanity’s Terwilliger Center for Innovation in Shelter (TCIS) partnered with the International Labour Organization’s (ILO) Impact Insurance Facility and Britam Insurance to develop affordable and accessible property microinsurance solutions. Through this initiative, more than 109,800 new policyholders—including MSMEs, women, and rural residents—gained access to affordable insurance for their homes and businesses, offering them a critical financial safety net.

Barriers to property insurance adoption

Phase 1 of the project identified key barriers to property insurance adoption: 

• Lack of awareness – Many potential customers are unaware of property insurance and its benefits.
• Complex policies – Technical jargon and lengthy contracts discouraged sign-ups.
• Affordability concerns – Rigid payment structures made it difficult for low-income families to access coverage.

To overcome these challenges, the project focused on simplifying insurance policies, raising awareness, and introducing flexible payment models that made insurance more accessible to underserved communities.

Challenges and lessons learned

While Phase 1 made significant strides in bridging the insurance gap, challenges remain: 

• Market hesitancy – Some insurers are cautious about developing new inclusive products.
• Low demand perception – Even among aggregators, there was limited interest in property insurance beyond mortgage providers.
• Need for better distribution – Finding the right channels to reach low-income consumers is critical for long-term success.

Looking ahead: What to expect in phase 2

Building on the successes and lessons from Phase 1, Phase 2 will focus on: 

• Scaling flood insurance – Expanding coverage to better protect climate-vulnerable communities.
• Integrating early warning systems – Helping households and businesses prepare for and mitigate risks.
• Expanding access: Aiming to reach over 300,000 policyholders by the end of 2025 and 500,000 by the end of 2026.

Inclusive property insurance is a powerful tool for resilience, ensuring that when disaster strikes, families and businesses can rebuild faster and more effectively.

Read the full report here: