MoUHA i.e the Union Housing and Urban Affairs Ministry tabled the draft of ‘The Model Tenancy Act, 2019’ in public, for consultation. The real estate experts feel that this is a step in the right direction as rentals or housing lease is expected to become a major segment in real estate.
Niranjan Hiranandani, President, National Real Estate Development Council (NAREDCO) said that rental housing can gain traction, with a conducive policy framework. He further said that it also gives a lucrative proposition for real estate investment trusts (REITs) and foreign direct investment players with a steady income, as well as appreciation in the property value.
The experts, however, feel that the rule will lose its purpose if the guidelines are not followed in a proper manner. Another thing that experts point out is that the Indian housing policies have also been house ownership-centric and nothing is done to promote rental housing.
The industry experts feel that this is a serious lacuna, since rental housing, by itself, can help narrow the Indian housing shortage to quite an extent. Despite the shortage of housing, vacancy levels have been on the rise, feel experts.
As per the national census, vacant houses comprised approximately 12% of the total share of the urban housing stock, amounting to nearly 11.1 million homes in 2011, an increase of 71% since 2001. Among the cities, Mumbai had the highest number of vacant homes with nearly 4.8 lakh units, followed by Delhi and Bengaluru which had almost 3 lakh units each, a recent report shows.