Rental housing needs government support and tax incentives to boost affordability: NAREDCO

India’s real estate sector needs a stronger push towards rental housing if the country wants to address affordability concerns and sustain long-term urban growth, according to Dr Niranjan Hiranandani, Chairman of NAREDCO.

Speaking at NAREDCO Maharashtra’s Change of Guard event held in Mumbai, Hiranandani highlighted that while home loans and financing options have significantly improved home ownership affordability, rental housing remains an equally critical segment that requires immediate policy attention.

He noted that India’s rapidly growing urban population and rising migration to major cities are putting pressure on housing supply. In this backdrop, rental housing can play a key role in meeting demand from young professionals, migrant workers, and families looking for affordable living options in urban centres.

Hiranandani stressed that government support measures and tax incentives are essential to encourage developers and institutional investors to participate in the rental housing segment. Such initiatives, he said, would not only improve affordability but also create a more balanced and sustainable real estate ecosystem.

At the event, NAREDCO Maharashtra also announced a leadership transition, with Kamlesh Thakur taking charge as president, succeeding Prashant Sharma. The new leadership outlined its focus areas including transparency, faster approvals, ease of doing business, and stronger collaboration with government agencies.

The association also launched NAREDCO ONE, a digital platform aimed at bringing developer members onto a unified communication and information-sharing system. The move is expected to improve coordination within the sector and support policy-led initiatives.

Industry experts at the event pointed out that rental housing is becoming increasingly important as demand patterns shift across metro cities and emerging urban corridors. With policy support and incentives, the segment could become a major driver of future real estate growth.

As India’s cities continue to expand, experts believe rental housing will remain central to addressing urban affordability challenges while supporting sustainable development in the housing sector.