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THEME PAPER
key role and all schemes should housing is more in the range of offers low entry and exit costs,
be converged to achieve desired Rs. 7,000 to Rs. 8,000per month greater flexibility that facilitates
results. but the market services cater only mobility, better options in
Multiple Housing Options in high-end rental segments. providing more conveniently
Developers require incentives to located place of dwelling and
There is a need for cater to rental housing for low- better value for money that
simultaneously pursuing a mix income segments. But the higher make it a preferred option over
of rental and ownership housing. income segments among the Home Ownership. In a position
People differ with their income, LIG categories could be catered of acute shortage, rental housing
requirements and preferences. to by the market with policy provides a staging post to the
A housing survey reveals that interventions. tenant and enables a steady
customers preferred safety, source of income, which converts
security, street lighting first and Public-Private Partnerships urban land into an investment,
social infrastructure like schools, Housing policy needs to focus to the owner.
hospitals are the next priority on all income segments/strata
and then comes the accessibility of the society and not only the Design of Incentives to
to places like metro connectivity, poor. Grant and subsidy do Stakeholders
buses and transportation. Other not always work and there is a The private sector may require
aspects were last in priority need to look at the market. The incentives like tax rebates, fast
while selecting properties for vision of providing housing to clearances, and density bonus,
renting. Given the experience all, whether ownership or rental etc. to cater to the needs of low-
with ownership housing under housing, calls for an increase income housing. Depending
JNNURM, rental housing needs in investment for housing, upon who the stakeholders
to get a push as it can be the including providing an enabling are, the incentives have to be
most appropriate strategy to environment for the private defined. For example, the private
meet housing needs of many, sector to participate in providing sector can be roped in to supply
especially migrants and a young affordable housing to the weaker affordable housing to upper
population who tend to be sections and low-income groups segments of the low-income
mobile. But location and services of the society. The problem is so groups. It can be incentivised
will also need to be taken into huge that the government alone for other housing groups
account. will not be able to make a dent with appropriate incentives.
Market Segmentation on it without a partnership with Affordable housing to the poorest
the private sector. of the poor segments should have
The housing market is a separate platform, delinked it
heterogeneous. Different Promoting Rental Housing from private developers. Public
segments have different incomes In view of the current urban housing including beneficiary
and needs. The lower the income housing shortage, it is essential led housing and rental subsidy
of the beneficiary, the greater that housing ownership be schemes as in other countries
the role of the government in supplemented by rental housing may be considered. The overall
housing as the lesser will be and a good tenure mix is vital business environment of the
the incentive for the private for a healthy and inclusive real estate sector needs to be
developer to enter into the development of the housing improved. For example, fast
housing market segment. For market in India. From a tenant track building plan approval
example, the demand for rental standpoint, a rental house process can lead to quicker and
16 HUDCO-HSMI Publication
