Model tenancy law may prompt builders to construct about 50 pc of homes for rent purpose: NAREDCO

Realtors' body NAREDCO Monday said the proposed model tenancy law, if implemented by all states, will promote rental housing in a big way and it expected builders to construct at least 50 per cent of its total inventories for rent purpose in the next five years.

The Union housing and urban affairs ministry has put the draft of 'The Model Tenancy Act, 2019' in public for consultation. The announcement in this regard was made in this year's Budget.

"The draft model tenancy law protects all stakeholders, including land owners and tenants. This will promote rental housing in a big way," NAREDCO President Niranjan Hiranandani told reporters here.

The association, he said, is studying the draft law and will submit its recommendations.

Hiranandani hoped that all states will frame their own law based on this model law prepared by the Centre.

"I expect that developers will put 50 per cent of their products under rental housing," he added.

NAREDCO Chairman Rajeev Talwar said the recent announcement in the Union Budget concerning the promotion of the rental housing sector promises new growth areas for developers.

The association's Vice-Chairman Parveen Jain emphasised on faster adoption of modern construction technologies. "This will help in faster deliveries and will eventually help homebuyers."