Institutionalising the Rental Housing Market in India 2019

Written by Suchit Punnose | Oct 16, 2019 11:00:00 PM

Rental housing has been a much passed over subject in context of housing in India. Even after 72 years of independence, there is no policy framework to catalyse private sector participation in this vital subgroup of housing despite 21.72 million urban rented households. Historically, the Indian housing policies have been directed towards home ownership which alone cannot solve the housing conundrum. Zero or no policy interventions for rental housing have been a big deterrent for creation of rental housing stock in the country. As per the Census 2011 data, 11.09 million houses remain vacant in urban areas despite the massive housing shortage. This is due to various factors such as low rental yield, poor maintenance of vacant stock, forceful possession, dilapidated state of buildings and lack of incentives. As an extension of these market realities, the prospects of converting urban land into investment and provide a steady source of income to landlords remains nil.