Mumbai: A new model tenancy law along with several other reform measures would be announced to promote rental housing in the country, said finance minister Nirmala Sitharaman in her maiden Union Budget on Friday.
“Current rental laws are archaic and do not address the relationship between the lessor and the lessee realistically and fairly,” Sitharaman said, adding that new tenancy model would be finalised and circulated soon. However, she has not provided details on the proposed reforms and tenancy law.
The move by the government is likely to help streamline and boost the highly unorganised Indian rental market which is estimated to be an around $20-billion market as per IMF. While urban areas account $13.5 billion, around $0.8 billion come from rural areas.
“The new model tenancy which is likely to be re-introduced is expected to balance the rights and responsibilities of both landlords and tenants that will make the rental market more efficient and streamlined across the country,” said Megha Maan, senior associate director, research at Colliers International India.
The FM also said several land parcels held by central government and public sector enterprises would be used to build large public infrastructure and affordable housing.
“Large public infrastructure can be built on land parcels held by central ministry and central public sector enterprises. Through an innovative instrument such as joint development and concession, public infrastructure and affordable housing would be taken up,” she said.
Under the ‘House for All by 2022’ mission, the government aims to build 1.95 crore houses between 2022 under the Pradhan Mantri Awaas Yojana (Gramin) scheme. So far 1.15 crore houses have been built under the PMAY scheme.