Housing : Rentals and Vacant Homes

What does the Survey Say?
The Survey pointed out that India’s housing requirements are complex and policies have mostly “focused on building more homes and on homeownership. So it wants a more holistic approach that takes into account rentals and vacancy rates.
  • The government needs to address issues such as rent control and unclear property rights rather than focusing on building more homes under its scheme to provide ‘Housing for All’ by 2022,
  • In turn, this needs policymakers to pay more attention to contract enforcement, property rights and spatial distribution of housing supply versus demand
  • A successful housing policy should enable the ability to move to, between and within cities as job opportunities arise.
  • It should also deliver vertical mobility, so that an aspirational population can climb the socio-economic ladder,
  • It highlighted that two important areas that need to be looked at are the rental segment and vacancy rates.
  • The share of rental housing has actually been declining in Indian cities since independence from 54% in 1961 to 28% in 2011.
  • As a proportion, renting accommodation is more prevalent in urban areas than in rural. According to the 2011 Census, the share of households living in rented houses was only 5% in rural areas, but 31% in urban areas.
Vacant Houses
  • It pointed out that despite the shortage of housing in urban India (more than 18 million households in 2012), there is also a trend of increase in vacant houses: from 6.5 million in 2001 to 11.1 million in 2011.
  • According to the national census, vacant houses constituted around 12% of the share of the total urban housing stock. Mumbai has the highest number of total vacant houses (0.48 million), followed by Delhi (0.3 million) and Bengaluru (around 0.3 million). In terms of share of vacant houses to total residential stock, Gurgaon ranked highest (26%).

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top