BACKGROUND
A strong rental market is not just a social necessity but also an economic catalyst. When people choose to rent rather than purchase prohibitively expensive homes, they free up capital that can be reinvested into businesses, education, and skill development, strengthening both household and national economies. This financial fluidity encourages entrepreneurship, increases consumer spending on goods and services, and generates indirect tax revenues for the government, which can then be reinvested into infrastructure and public welfare. Additionally, rental housing supports workforce mobility, allowing individuals to relocate for better opportunities without the financial constraints of property ownership, thereby improving productivity and economic efficiency across urban centres.
This shift in mindset is becoming particularly prominent among India’s youth, who are prioritising financial flexibility over long-term mortgage commitments. With rising aspirations, career shifts, and the increasing preference for experience-based living over asset accumulation, renting is no longer seen as a compromise but as a strategic choice. Recognising this trend, both industry and government must take proactive steps to streamline rental housing policies, incentivise large-scale rental developments, and create a regulatory framework that protects both tenants and landlords. The recommendations of this research aim to build a structured pathway in this direction, offering actionable solutions to strengthen and expand India’s rental housing ecosystem.
Research Objectives
Through our research, we seek to generate an integrated rental product that has the correct mix of policy, finance and housing type that meets the new-age criteria. Our key aims include:
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Providing permanent supply of Rental Housing in cities in various forms as a stepping stone to own a house or permanently stay on rent;
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Ensuring the institutional supply of affordable build-to-rent housing for Economically Weaker Sections (EWS) and Lower Income Groups (LIG) while not hindering the informal supply; and
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Encouraging market rental housing as a standalone service industry through targeted policy and financial interventions.