Real estate developers hail 'Model Tenancy Act'
The real estate developers in India have welcomed the Model Tenancy Act passed by the Narendra Modi Government.
The real estate developers in India have welcomed the Model Tenancy Act passed by the Narendra Modi Government. The industry insiders are of the opinion that the act would help Modi 2.0 Government to meet its ambitious target of 'Housing For All by 2022' to provide shelter to every citizen. They say that it would also bring transparency in commercial rental business as Rental Housing can gain traction with a conducive policy framework, which shall attract corporate players to provide serviced apartments for their employees. It also gives a lucrative proposition for REITS and Foreign Direct Investments players with a steady income as well as appreciation in the property value.
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Speaking on the act and its provisions Dr. Niranjan Hiranandani, National President at NAREDCO said, "Rental Housing concept is applicable globally in most of the developed countries. Indian Government has set an ambitious target of Housing For All by 2022 to provide shelter to every citizen. To meet this mammoth target, horizon and scope of this scheme should be expanded to embrace rental housing model. In the current day scenario, it easy to fetch commercial properties on lease versus residential. Therefore, new national rental housing policy will promote and regulate rental housing platform which will draw individual as well as corporate players into this emerging segment with a good influx of investments pumped into the residential rental housing segment. It also gives a lucrative proposition for REITS and Foreign Direct Investments players with a steady income as well as appreciation in the property value."
Dhiraj Jain, Director at Mahagun Group said, "There are many challenges and prevalent practices have to be kept in mind so as not to face hurdles for implementing the Act. There are practices like multiple month advance rent which will be difficult to wipe out as it shows the fears of landlords. The Act and the system have to give assurance to the landlords that in case of disputes the process of solving the dispute will not be taxing. Having said that it is a good move and let us hope that it will streamline the rental markets, which forms a large part of Indian housing segment."
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