Rental Housing: Government’s National Urban Rental Housing Policy
National Urban Rental Housing Policy: Sales have started picking up in the real estate in the country, even the rental market is growing at a healthy rate. A survey in 2011 indicated that a massive 24.7 million families lived on rent. Development of new workplace hubs and the increased rate of job creation has led the formation of new residential projects in and around the cities and huge growth in demand for rental housing in India. The reason is that buying a house is still more or less out of reach for most of the population, owing to high property prices.
Due to the migration from villages and small towns to cities has resulted in a constantly increase in the housing requirement, but there are not enough housing projects which are lower- income homebuyers. So mostly they end up living in a rented apartments which are near to their workplace in the cities and are also close to schools for their children.
Affordable Housing in India is located on the peripheries of the cities. Comparatively renting a house in the city is quite affordable. India’s growth in rental market is also the effect of demonetization move of the last yea and a slow down in the real estate market in the past couple of years, the effect of demonetization along with RERA and then GST.
Due to which properties were not getting enough buyers or the correct price, so the owners opted to rent their properties which has given an over-supply in the market. As per independent survey there was a decline of about 7% in annual rent in Delhi in the last 1 year.
Indian Real Estate market is now showing increased activity in terms of sales, and with stabilized prices along with more affordable housing supply hitting the market, the overall sales scenario is showing rebooted potential.
Rental market will continue to thrive since buying a home is still not affordable to a vast majority of people, and the employment opportunities available in major cities are not proportional to housing available there.
For the youth of today owning a house may not meet the requirements like best amenities in locations that ensure a good quality life, while renting means one can stay wherever one wishes, and move at any time.
Youngsters are deciding against buying a home and instead investing the funds which would have gone into EMIs into financial products for better returns, while staying in rented accommodation that does not pinch their pockets as much as an EMI does.
Government’s efforts to boost renting to help solve India’s massive housing challenges. The Government is coming out with the National Urban Rental Housing Policy to help reduce housing shortage and bring 11 million empty unsold houses onto the rental market.
For property investor, buying a home to rent out is a sound decision, as steady rental income along with capital value appreciation of the property in the long term can make such an investment quite lucrative.
Source Link- http://www.sify.com/finance/rental-housing-the-ideal-investment-news-finance-rixr1tjacifag.html