Rental Housing

By Accommodation Times Bureau

The Indian rental housing sector is seriously under-serviced by the organized real estate Industry. The onus to meet the huge demand for such housing falls largely on the unorganized sector – meaning individual property owners. By the same coin, the rate of organization of the sector is so rapid that we can see the shortage of rental space increasing alarmingly on a year-on year basis.

Also, one should remember that the shortage of rental space in India extends far beyond the usually considered boundaries. It is typical to focus only on the mega cities, which have a lot of economic activity and, therefore, a large quantum of inbound workforce to drive rental demand.

If we factor in the 30+ cities in India with populations of more than a million that also generate a considerable demand for rental accommodation, the problem becomes huge.

Another aspect of the rental property conundrum in India is that there is no thought given to the different kinds of products required to meet the different types of rental demand. For instance, there is a huge imbalance between bachelor and family residences in the rental market in most cities. So far, there has been no real concept of public or private agencies constructing residential projects specifically aimed at meeting the demand for rental housing. It is only now that agencies such as MHADA and MMRDA have woken up to this lacuna and have initiated certain projects targeted to meet this demand.

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