Key Challenges Of Affordable Rental Housing Policy In India
Since everyone cannot buy a house, affordable rental homes are necessary to meet the huge demand for housing in the country. They can also significantly contribute to ensuring housing for all by 2022. Sources say the government is likely to launch a new affordable rental housing policy soon, which is already in the consultation stage now.
Why does India need an affordable rental housing policy? Metro cities witness a huge influx of people from Tier 2 cities in search of employment. India is also facing rapid urbanisation leading to the shortage of houses primarily demanded by the EWS and LIG categories.
As per government reports, the urban housing shortage is estimated at 18.78 million units. Hence, affordable housing has to be supported by affordable rental homes so more people can be absorbed into the housing ecosystem.
The government should focus on rental housing schemes as it is also an important factor for social welfare. Much as it incentivised, the affordable housing includes rental projects held institutionally for formats such as student housing, senior living (long lease) and executive rental housing in growth centres, said CEO and Country Head, JLL India.
In countries like China and Australia, the government gives land as well as incentives for affordable rental homes. However, in India due to no rental policy, cities continue to grapple with these challenges.
Director of the Real Estate Management Institute (REMI) highlights four challenges of affordable rental housing in India:
- Land cost is high so it is not a very attractive proposition
- Maintenance and upkeep of houses – Tenants will be able to pay rent or not is uncertain
- Tenancy and Rental Laws – Revamp of the existing tenant laws as currently, people are nervous about rental housing models
- Emotional sentiment – People want to buy rather than rent.
Considering the growing demand for rental homes, there are many start-ups in India offering low-cost rental homes to the migrated population which mainly includes students and working professionals. This trend is picking up in Delhi-NCR and other places like Bengaluru and Mumbai.
It appears that the built-to-rent model can only be successful when the government provides incentives for it and encourages private participation through tax benefits to meet the goal of Housing for All by 2022.
Source Link- https://realty.economictimes.indiatimes.com/.