The central government declared on March 15th that it is bringing a new tenancy law to promote the rental housing sector. This will be primarily for the urban areas and the law will be brought after taking in to account the recent requirements of the city’s rental sector. It is a fact that migration to different cities are at its peak now with many  new tier II cities which are flourishing too. The new rental policy is being planned keeping in mind this trend of migration to cities. This policy will be mainly for the ones who let out their houses for renting. This is what the Urban Development Minister, Mr. M Venkiah Naidu reiterated to the press. Adding to this he also said that the draft of the new law has already being sent to the respective state governments for their views on it. The draft policy that is being shared with different states of India and other stakeholders also includes few of the re-commendatory incentives both on the fronts of non-financial and financial realms to promote the cause of rental housing.

The spokes men of the government said that a new modern policy on tenancy is being attempted to be evolved which is indeed a challenging task. Mr. Naidu said that the task is difficult but not impossible. The data and the census on the urban housing say that 11.09 million houses are vacant as per the data census of 2011 and there is a housing shortage of about 19 million units in the cities. The draft of the new rental bill has also kept in mind the “Housing for All mission by 2022” and has incorporated a host of fiscal incentives for the encouragement of rental housing. This is also aimed at as housing is the key sector of real estate to boost and uphold the demand of the ancillary sectors like steel, cement and other building materials apart from creating additional jobs in the sector. The draft of the real estate rental Bill also suggested few of the tax incentives for the house owners and the land lords renting their property. These incentives are also there for the institutional property owners who wants to set up mass rental housing and there are provisions of exemption of the Property Tax for Social or the cooperative housing and rental properties.

The amendment also suggested the treatment of the rental housing stocks equally with the premises duly owned by the owner in the terms of the property taxes and in calculation of the different utility charges like the water, electricity and other services and facilities.

10 Responses

  1. Navaneeth

    In urban areas, many landlords can get advantage of tenancy law and they invest more to construct residential and PG accommodations. Now PG accommodations are in most demand in Bangalore. And many small scale investors are starting PG accommodations.

    Reply
  2. saikumar

    Housing is the key sector in the real estate of this law many investors and builder’s it’s brought new changes.This tenancy law also brings changes in both residential and commercial real estate.

    Reply
  3. Prakash Raj

    After reading this article I am having some doubts. Whether it is useful for the builder or investor. What are the changes will appear in Real estate due to this tenancy law.

    Reply
  4. Shareef

    Most of the investors are welcoming this new tenancy law, because it will be more useful for investors.

    Reply
  5. Saroja

    This new tenancy law is very useful for both the investor and the realtor. Both are having some tax exceptions and it will control the fraud. So it is useful to increase the real estate market.

    Reply
  6. Adharsh

    This tenancy law makes happy to invest and attract the middle class people to invest in realty firms, because there is tax incentives for owner of rental homes.

    Reply
    • Arjun

      Of-course the tenancy law helps house owners and investors to boost the realty market. And is there any positive effects on tenants?

      Reply
  7. Ashwin

    Govt of India is introducing new bills along with schemes to promote and attracting the investors to develop the Realty Industry. This tenancy law makes investors happy to invest in real estate to enjoy the benefits.

    Reply
  8. Abhi

    The new ‘Tenancy Law’ is really boosting the Realty market’s investors. And the best with this law is that ‘tax incentives for the house owners’ it’s a really quite interesting point.

    Reply
  9. Gowri Sankar

    The government of India introducing a new and best law which is Tenancy law. This will help to the investors. It will increase the growth of Real estate in India.

    Reply

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