20.7 lakh houses lying vacant in top 12 cities when they have highest urban housing shortfall
New Delhi: About 20.7 lakh houses are lying vacant in the top 12 cities of the country when these cities have the highest urban housing shortfall. One of the main reasons for so many homes lying vacant is that the rental yield is too low to cover the risk of renting out the properties, according to a joint report by RICS and Knight Frank.
Out of this 20.7 lakh homes, around Mumbai accounts for the highest number of vacant houses having 5 lakh such units. Delhi and Bengaluru have 3 lakh such units each while Pune and Ahmedabad have 2 lakh such homes each.
The litigations risk in renting out properties and Rent Control Act are other big reasons why landlords are reluctant to tent out their homes. The Rent Control Act does allow eviction of the tenant in certain cases but the implementation f the Act so far has been tilted in favour of the tenants.
Jaipur has about 1.2 lakh houses lying vacant while Hyderabad has around 1lakh such units. Lack of an organised renting marketplace has also acted as a hindrance in the development of a robust renting system in the country.
Kolkata has about 80,000 homes lying vacant while Bhopal has around 75,000 such units. The cost of transactions involved in a renting activity including the brokerage and taxes are also proving to be an impediment in development of a robust renting system. Gurugram, Lucknow and Ghaziabad have the rest of the vacant homes.
Rental housing is the need of the hour in the country in supporting the urban housing requirements. Due to the lack of formal rental housing schemes in the country, a number of urban migrants are forced to resort to informal housing.
According to an estimate by Knight Frank, ‘Purpose Built Student Housing’ has a potential of 60 lakh hostel beds in India at the moment.