Rental housing is not an option for developers, says DLF's Rajeev Talwar

In Mumbai, the price of housing has stagnated since 2013

While the Union government has issued the draft of a model tenancy law, to promote rental housing, real estate developers are not keen.

“Rental housing is not an option for developers. Government has to change policy to make it viable for property developers,” said Rajeev Talwar, chief executive at DLF, the largest company in the sector. The annual yield on investment in housing is 2 to 3 per cent. Those on commercial property are between 8 and 10 per cent. “Developers get loans at 13-14 per cent (interest a year), if not higher. Therefore, at the current yields, rental housing is