Rental policy to bring a revolutionary change in the real estate industry: Niranjan Hiranandani

                The much-awaited rental housing policy will bring about a revolutionary change in the real estate sector, stated Niranjan Hiranandani, President, NAREDCO. He said this during a webinar organised by The Free Press Journal and IIM Indore, supported by BIG FM and Money Life.

 

Speaking on the rental real estate, Hiranandani, Co-Founder and Managing Director, Hiranandani Group, said, “Post COVID-19, the rent policy will be the next revolutionary thing.” The ministry of housing and urban affairs (MoHUA) has posted the draft policy on their website and it is awaiting feedback from the general public. He added the Housing minister Hardeep Puri has been proactively looking at developing this policy. Hiranandani, who is also National President, Assocham, added that this policy will help rental home seekers to get dwellings at an affordable rent.

 

The focus of the new policy would be to help reduce housing shortages in urban areas and also encourage renting of homes which lie vacant across the country.

 

Hiranandani stated that currently, it makes no sense for institutions or developers to actually build residential houses on rent. On the contrary, there are many commercial places that are built for being rented out.

 

Hiranandani strongly felt that this rental policy will be of help to all those aspirational migrants who come to the cities for better living standards but end up in homes that are not liveable. He stressed on the need to have social security for these migrants. If they had homes, they might not even leave the cities they dwell in, he explained. He added that if the governments give impetus to the concept of housing for migrants and other labourers, it will be helpful in not just providing homes but also driving the growth story of the country.

 

This impetus to housing along with a boost to infrastructure projects could easily result in a GDP growth of 7 per cent plus by March 2021, but “only if the government focuses on housing in terms of policies and RBI sorts the liquidity issue along with the Gadkari-led infrastructure projects. Then this growth is achievable.”

 

He also mentioned how taxation has impacted the sector. He added that over the years, real estate has become the most heavily taxed industry in India. “More taxed than tobacco.” If 35-40 per cent of the value of the apartment one is buying is in terms of direct and indirect taxes, then it is natural that housing is going to be expensive, he stressed.

Source: The Free Press Journal