Builders not interested in rental housing projects under Rajiv Awas Yojana
The Rajiv Awas Yojana was announced in the 2009 budget. It was a government initiative to improve the living conditions for the urban poor through the construction of houses in India for the so-called economically weaker sections (EWS).
A critical part of the program, amounting to one-fourth of such projects, is developing rental accommodation. However the private builders are not showing much interest on the project.
Now the government has made it mandatory that all housing projects in the EWS category under RAY will have a minimum 25% of the residential stock dedicated to rental housing in India.
But according a government official, the government will put thrust on new projects as a part of their preventive strategy to tackle housing shortage but so far no developers have come forward to bid for such a project.
Most developers are not thrilled by such projects since the returns on selling a property are much higher than on renting it.
In a typical EWS category housing project, the government allows a part of it to be developed as commercial space along with the rental housing. The project’s success depends on who will manage it and set the eligibility criteria for those seeking to rent homes.
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Government emphasizing on Affordable Housing Scheme
Source: Livemint
Affordable houses, affordable housing policy, houses in India, Housing projects, Rajiv Awas Yojana, rental accommodation, rental accommodation in India
