Government To Release National Rental Housing Policy Soon
The draft National Rental Housing Policy after due consultation with the concerned ministries in the government will be soon released, said Minister of State with independent charge for Housing and Urban Affairs.
The Minister told that the rental policy will be out soon adding that consultations on the policy are on, as they have consulted Chief Ministers and need to consult some other ministers in the government. No specific timeframe has been given for the release of policy.
Rental Housing Policy is aimed at alleviating the housing shortage in urban areas by encouraging renting of homes, which is currently at a consultation stage and will be sent for cabinet approval after due diligence.
Also, as most of the slum dwellers are not interested in shifting to affordable houses as they are located away from cities and employment hubs, the Minister said, that they have to develop the slums on an ‘as-is-where-is’ basis moreover it is no longer possible to lift people and relocate 40-50 kilometres away from the habitation and their work.
Large-scale rental housing complexes could provide basic amenities and social services, which will ease the process of developing new industrial complexes and urban areas.
For private investment to flow into rental housing, ultimately the return on capital for rental housing projects would need to be competitive vis-a-vis returns earned from assets with similar risks/ alternate use of that money such as debt funds, etc. The business models in the housing sector and the income tax laws promote ownership driven models, with returns accruing primarily from capital appreciation. The rental yields in India are low. However, they are not uniform and can be relatively higher for smaller sized housing.
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