Mumbai: Maharashtra has the third-largest percentage of urban rental homes occupied by nuclear families, of the 21.72 million such households in India out of the eight states and union territories.
This is according to a report released by Knight Frank India, the international property consultancy service and Khaitan & Co, one of India’s largest law firms on Monday.
The state ranked number three on the list of urban rental households, thereby dispelling the notion that 50 per cent of nuclear families in urban areas own their homes.
In urban India, eight states and union territories have the highest percentage share of rental households, comprising 16.63 million or 76.57 per cent of the total urban rented households.
Tamil Nadu, with 16.5 per cent, has the highest share of rented households in India, followed by Andhra Pradesh (13.5 per cent ), Maharashtra (13.5 per cent), Karnataka (11.3 per cent), Gujarat (6.1per cent), West Bengal (5.9 per cent), Uttar Pradesh (5.1 per cent) and the National Capital Territory (NCT) of Delhi (4.3 per cent).
The report advocates that the Draft Model Tenancy Act (MTA) 2019, when implemented, will ensure the growth of institutional rental housing in India, especially in its mega and metropolises.
If rental housing is institutionalised with the introduction of a legal framework as envisaged, it would help create a huge rental stock, which can also attract institutional investments in the long run, the report estimates.
Shishir Baijal, chairman and managing director of Knight Frank India said, “As we move towards a more flexible work environment globally, there is a need for the Indian real estate sector too to envisage itself as a service, rather than a product.
The addition of over 223 million new urban residents to the cities by 2031 will not be feasible if the rental housing market is not developed. However, in order to truly institutionalise and revive the rental market, more thought and debate is required to evolve the Model Tenancy Act into a meaningful, holistic and comprehensive piece of legislation.”
Sudip Mullick, a partner of Khaitan & Co said, “Limited policy relating to rental housing and existing legislation unfriendly to landlords or owners of premises have been a big deterrent for creation of rental housing stock in the country.
The MTA provides a much-needed independent mechanism specially engineered to deal with issues pertaining to rental premises. MTA will provide for speedy remedies to both owner and occupier of rental properties and will enable the court to deal with more legal factors that require evaluation of issues arising out of changing environment of complex commercial transactions, government policies and new laws.”
