Affordable Rental Housing for Poor

15 Jul 2020 CW Staff

This initiative basically emanated from the plight and migration of workers during the COVID-19-infused lockdown. Absence of affordable rental housing in major cities led to mass exodus of migrants that had zero income during the lockdown. Thus, the government had to shift gears of their Housing for All initiative and include affordable rental housing as part of it.

The scheme is clearly an attempt to bridge the shortfall of dwelling units across the country. All states will also be asked to develop such products and encourage private partnerships. The move will not just regularise the rental housing market across the country, but it will also add another asset class to be considered by developers at large.

Furthermore, to attract private participation from developers, the government has also rolled out special incentives such as use permission, 50 per cent additional FAR/FSI, concessional loan at priority sector lending rate, tax reliefs at par with affordable housing, etc. to develop ARHCs on their own available vacant land for 25 years. Many developers have significant land parcels both within the cities as well as their peripheries – the latter land parcels being prime candidates for affordable housing, including rental housing. Land parcels in the municipal limits may not be viable for this purpose, given the high land rates.

However, low yields are likely to be a major deterrent for attracting private participation. Even while funding for such projects is said to be given at concessional rates, it may still be unviable for developers who have bought land within city limits at steep prices earlier on. Even while the government has tried to address these deterrents and provide benefits and incentives, we will have to wait and watch and see how this move can mobilise the interest from the industry.

About the Author:

Anuj Puri is Chairman at Anarock Property Consultants.

The Cabinet approval for development of affordable rental housing complexes (ARHC) for urban migrants and poor is indeed a praiseworthy move which will significantly help fulfil the government’s ambitious ‘Housing for All by 2022’ initiative. Under this scheme, vacant government-funded housing in urban cities will be converted into ARHC via the PPP model and be rented out to migrants at concessional rates. This initiative basically emanated from the plight and migration of workers during the COVID-19-infused lockdown. Absence of affordable rental housing in major cities led to mass exodus of migrants that had zero income during the lockdown. Thus, the government had to shift gears of their Housing for All initiative and include affordable rental housing as part of it. The scheme is clearly an attempt to bridge the shortfall of dwelling units across the country. All states will also be asked to develop such products and encourage private partnerships. The move will not just regularise the rental housing market across the country, but it will also add another asset class to be considered by developers at large. Furthermore, to attract private participation from developers, the government has also rolled out special incentives such as use permission, 50 per cent additional FAR/FSI, concessional loan at priority sector lending rate, tax reliefs at par with affordable housing, etc. to develop ARHCs on their own available vacant land for 25 years. Many developers have significant land parcels both within the cities as well as their peripheries – the latter land parcels being prime candidates for affordable housing, including rental housing. Land parcels in the municipal limits may not be viable for this purpose, given the high land rates. However, low yields are likely to be a major deterrent for attracting private participation. Even while funding for such projects is said to be given at concessional rates, it may still be unviable for developers who have bought land within city limits at steep prices earlier on. Even while the government has tried to address these deterrents and provide benefits and incentives, we will have to wait and watch and see how this move can mobilise the interest from the industry. About the Author: Anuj Puri is Chairman at Anarock Property Consultants.

Equipment

12 Dec 2025

Schwing Stetter India Unveils New Innovations at Excon 2025

Schwing Stetter India unveiled more than 20 new machines at Excon 2025, marking one of its most significant showcases and introducing several India-first technologies to the construction equipment sector. The company launched the country’s first 56-metre boom pump designed and manufactured in India, the first fully electric truck mixer, the first CNG mixer variant and the first hybrid boom pump. Executives said the launch portfolio was engineered to support India’s move toward faster, greener and more vertically oriented infrastructure through advanced engineering, clean-energy solutions a..

Infrastructure Energy

12 Dec 2025

SEPC Resolves Hindustan Copper Dispute, Wins Rs 725 Mn Order

Engineering, procurement and construction firm SEPC Ltd has recently settled a dispute with Hindustan Copper Ltd (HCL) and secured a mining infrastructure order valued at Rs 725 million from the state-owned company. SEPC informed the stock exchanges that it has executed a settlement deed with HCL, bringing closure to all inter-se claims and counterclaims arising from arbitration proceedings. As part of the settlement, SEPC will receive Rs 304.5 million as full and final payment, marking the resolution of all pending disputes between the two entities. The company also stated that Hindustan Co..

Infrastructure Energy

12 Dec 2025

20% Ethanol Blending Cuts India’s CO2 Emissions by 73.6 Mn Tonnes

Union Road Transport and Highways Minister Nitin Gadkari recently said that India has reduced carbon dioxide emissions by 73.6 million metric tonnes due to the adoption of 20 per cent ethanol blending in petrol. He made the statement while replying to supplementary questions during the Question Hour in the Lok Sabha. Describing ethanol as a green fuel, the minister said it plays a key role in reducing pollution while also supporting higher incomes for farmers. He underlined that ethanol blending contributes both to environmental sustainability and rural economic growth. Nitin Gadkari also po..