India would see rental housing making a big splash in the market in the next 10 years, The government has started working on a policy on rental housing.
In an interview to DNA Money, Mr Niranjan Hiranandani, co-founder and managing director of the Hiranandani Group, as well as national president of National Real Estate Development Council, said, “We need to create a rental housing policy quickly. The government is going to come up with that. We have already had a chat with the government.”
In 10 years, at least 50% of all the housing stock created will be on a rental housing basis, Mr Hiranandani noted. “The concept of rental housing has not come fully. This is going to be the next biggest change in India.”
This has already happened in the commercial realty segment, with 70% of the properties being put on a rental basis. This model is often implemented for large commercial real estate assets.
The richest country in the world, the US, has at least 50% of houses only for rental. “In India, the government said they want ‘Housing for All’, but they have presumed that it will be on an ownership basis. It’s not needed. No country in the world, even America, Russia or China, has everything on ownership. At least 50% of housing in the future has to be on rent,” Mr Hiranandani observed.