With the country going through a rough phase of economic crisis, the real estate sector, which is one of the major contributors to the country’s economy, has also suffered. Not only has the number of projects become limited owing to a lull in investment but the spaces available for construction have also become limited. The Twelfth Five-Year Plan (2012-17) estimates show that the housing shortage in the country is almost 29 million units. Inadequate supply of affordable housing is being seen as the key reason behind this shortfall.
A recently conducted survey by ConstructionBiz360 shows that a resounding 100% of respondents feel that rental services can be regarded as a long-term solution to the problem of residential property shortage in India.
According to Ramesh Nair, managing director (West) at Jones Lang LaSalle India, “Tenants prepared to make commitments in the short-term continue to have leverage, but the window of opportunity to secure attractive long-term rental rates and quality space will begin to dwindle by end of 2012.”
It has widely been seen that many developed economies have emphasised on providing its citizens with affordable social rental solutions, which contributes to about 20-30% of their housing stock. These social housing solutions in fact are provided by the government itself or by organisations using government incentives.
According to Darshini Gangadhar, a Bengaluru resident, “Rental houses are obviously better when it comes to looking for budget housing solutions. Not only are they economically viable, but also easily accessible.”
Accessibility is incidentally a big issue in cities like Mumbai complaining against cramp for space.
With the commendable growth of the housing finance industry over the last 20 years, the government has been motivated to promote the private sector to construct housing stock for the lower income group in the city. However, a lot remains to be done as the country looks to provide housing to every citizen in the country within the next few years.