Real Estate Reactions on Rental Housing Scheme

Sharad Mittal, CEO, Motilal Oswal Real Estate Fund stated, “One of the biggest challenges faced by the real estate sector in reviving activity pertained to migrant labour. FM’s announcement of providing free food grains to 8 crore migrant workers over the next 2 months and soon making their PDS cards portable across states will provide an incentive to the migrant works to return to the sites more quickly. Announcing the scheme on providing affordable rented houses to migrant labour under the PMAY scheme will provide long term stability to them and may help in reinstating their faith in the current crisis.” Ramesh Nair, CEO and Country Head (India), JLL said, “The second set of special economic measures were announced as a part of PM Modi’s ‘Self-Reliant India’ movement. These measures focused on resolving the problems of migrant workers, street vendors and farmers. The Government of India is committed towards generating employment opportunities while ensuring that people across the nation get access to necessities such as food and shelter. ‘Housing for All’ has been a major focus of the Government and the affordable rental accommodation scheme for migrant workers and urban poor will go a long way in ensuring the same. Moreover, this availability of organised housing facilities will lead to decongestion of urban spaces by reducing unauthorized occupancy & encroachment and thus, facilitate better town planning. “ Sushil Mohta, Chairman, Merlin Group and President, Credai West Bengal expressed, “Affordable Rental housing for white / blue collar is a great idea, as currently they stay in slums or Chawls in inhuman conditions. In many countries like Dubai etc, this scheme is applicable, but to deal with individual and collect rent will be very difficult unless one can rent out to corporates or suitable amendments are brought in currant rent laws. Govt should exempt this housing from land ceiling and give exemptions/ concession on income tax, municipal taxes in gst and banks should be asked to lend liberally at concessional rate.” “The announcement to build rental housing complexes via public-private partnership will stimulate demand for raw materials, generate employment and thus provide a thrust to affordable housing,” said Surendra Hiranandani, Chairman and Managing Director, House of Hiranandani. Manju Yagnik, Vice Chairperson, Nahar Group and Vice President NAREDCO (Maharashtra) on the measures announced on housing, migrant workers by the Finance Minister’ stated, “The announcements on affordable rental housing would certainly boost sentiments of the housing sector. Affordable rental housing scheme for migrant workers and urban poor in the places where they are working will help migrant workers in a big way. This will be done via the PPP model, which will help the housing sector too. The housing sector is directly and indirectly linked to over 200 allied sectors, which will boost the demand for steel, cement and industries linked to the supply of raw material.”