A bet­ter fu­ture for rental mar­ket

In­no­va­tive schemes, use of va­cant homes, PPP model rec­om­mended in draft Rental Hous­ing Pol­icy

HT Estates - - FRONT PAGE - Van­dana Ram­nani

Many peo­ple in­vest­ing their hard­earned money in a house hes­i­tate t o rent i t out. Fear­ing that their ten­ants would ei­ther de­fault on rent pay­ment or not va­cate the house, they pre­fer to sit back in­stead and wait for prices on the property to ap­pre­ci­ate. Low re­turns on rentals are a prob­lem too, with 1.4% re­turns on res­i­den­tial property con­trast­ing sharply with 6% to 7% re­turns on com­mer­cial prop­er­ties.

The draft Na­tional Ur­ban Rental Hous­ing Pol­icy re­port re­leased last month seeks to ad­dress all rental mar­ket is­sues. It ac­knowl­edges that 11.09 mil­lion houses are va­cant in ur­ban ar­eas as per Cen­sus 2011 and sug­gests that if th­ese are made avail­able for rental hous­ing, the ur­ban hous­ing short­age is­sue could be largely sorted out.

Real es­tate ex­perts are of the view that the gap be­tween va­cant hous­ing stock and ac­tual hous­ing re­quire­ments needs to be bridged, a task which can be ac­com­plished by draw­ing up an in­ven­tory of empty houses. Amit Bhatt of Em­barq In­dia sug­gests that the gov­ern­ment could con­sider the Sin­ga­pore model of pro­vid­ing hous­ing to peo­ple for a fixed ten­ure, get­ting the gov­ern­ment to take over the units later to con­sider their re­de­vel­op­ment po­ten­tial.

“The new draft pol­icy seeks to ad­dress some of the fears land­lords have but it re­mains to be seen how it gets im­ple­mented,” says Su­nil Tyagi of Zeus Law, a law firm.

The draft pro­poses rental hous­ing mod­els such as PPP and schemes such as rent to own, shared own­er­ship, rental

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