The rise in rental housing demand is giving a new face to the metropolitan cities

Q: Why rental housing is the next big thing in the realty sector?

Javed,

11th February 2016

Rentals in Mumbai

budget 2016

rental housing

rental housing programme for weaker sections

recommendations for budget 2016

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Replies (3)

Yes, and my only recommendation is that the government should fast track the process of preparing the Draft National Urban Rental Policy 2015 and Draft Model Tenancy Act 2015. Increase Tax exemption for rental income from 30 % to 50 % while giving woman headed households full exemption.

Vatsa Suman, Pune

11th February 2016

Comment

It is true Shailja. around 56% of the shortage of 19 million units is from the economically weaker section with an average annual household income of up to Rs.1 lakh, while around 40% in the lower income group with an income of Rs. 1-2 lakh.

Vatsa Suman, Pune

11th February 2016

Comment

HI Vatsa,
So, which are the factors leading shortage of demand across the cities?

Shailja, Delhi-NCR

11th February 2016

Well, no generalization of rent, no regulation for brokers, no fixed framework for the deposit money, no fixed framework for rent agreement and lack of any regulation on the hike of rent are few factors leading the shortage of demand across the city.

Vatsa Suman, Pune

11th February 2016

Thanks for the information Vatsa. You mean to say that these are particular section of the sector which Budget 2016 should give most importance. And what is your recommendations for Budget 2016?

Shailja, Delhi-NCR

11th February 2016

Hi Javed,
It is because of demand for residential properties on lease was the highest in Bengaluru followed by Mumbai and Pune. Large job market in Bengaluru and Pune, high cost of owning a home in Mumbai, increasing migration of people to the city led to the growth.

Praveen Modi, Mumbai

11th February 2016

Comment

Hi Praveen,
The problem is not so much with supply as it is with the shortage of demand. As the country faces a shortage of 19 million houses, around 10.2 million completed units are lying vacant, which can be soaked up under rental housing programme for weaker sections.

Shailja, Delhi-NCR

11th February 2016