The Gujarat government plans to provide a major boost to the rental housing sector in the state. Apart from introducing a new affordable rental housing policy, the government will incentivize affordable rental housing projects through the public private partnership (PPP) mode. The state government’s policy will be on the lines of the Union government’s proposed rental housing policy.
Apart from providing a much needed boost to the real estate sector, the move will also bring into use the piled-up housing inventory.
A key state government official said that at present, there are over 8,000 constructed apartments of the Gujarat Housing Board (GHB) that are lying vacant because of various reasons. “The government aims to offer all these properties under the affordable rental housing policy. A very large chunk of migrant workers do not get housing facilities. Workers coming to the state for a shorter period of time do not want to buy houses either and are also not able to afford high rent. Such persons will benefit from the proposed affordable rental housing policy,” the official said.
More importantly, the government is considering a proposal to use plots of land reserved for economically weaker sections (EWS) housing projects to create large scale rental housing facilities under the PPP mode. “The government will offer plots reserved for EWS housing in all areas of all cities to private developers. This will ensure that the floating population of our cities can get housing facilities on rent at affordable rates,” the official said.
Sources in the government said that existing affordable housing schemes which are lying vacant due to poor demand will also be included in the PPP affordable rental housing schemes that the government intends to offer. “The developer will begin to get money against his investment even while catering to the demand of affordable rental houses,” the official said.
Sources further said that, “The government aims to acquire over 25,000 homes under the PPP mode in the coming months and offer these as affordable rental housing units. Government plans to offer FSI and other incentives similar to affordable housing and EWS housing schemes. In addition, the government may pay a subsidy also for these affordable rental housing projects, so end users can get benefits.”
