Feb 23, 2009, 11:32 PM
Post #1 of 1
In the Indian context, the real impact of the Rent Control Act on the rental housing market would depend on the relative proportions of the controlled, semi-controlled and uncontrolled segments of the market in cities like Kochi. As the poorer households find it difficult increasingly to secure legal shelter by ownership or tenancy, they seek accommodation in the informal unregulated settlements, or on subletting arrangement of various types in the semi-controlled market.
Part of private sector innovation
The degree of security enjoyed by the tenants in the unauthorized settlements is, of course, a function of community pressure, perception of the de facto legality of the settlements, and the clout of the landlord. In the semi-controlled market, the impact depends upon the landlordís perception of the risks involved. In the controlled market, the impact of rent-controlled legislation is seen in the large number of cases averaging around 10,000 per year instituted in the major cities, and the frustration of the affected parties over early resolution of the various claims for possession of the premises and the settlement of the rent arrears. It has been seen that a large proportion of cases actually involves smaller premises and those with lower rents.
We may now look at the experience of direct public intervention in the management of rental housing, and the nature of the effort taken by the private sector in creating shelter for a large section of the people. The role of the private sector in accelerating housing development can never be sidelined in cities like Kochi. When considering the proliferation of apartments Kochi is in the forefront of all other destinations and the flats and other living spaces on offer are of world-class quality.
The success in one real estate venture has resulted in more investments in other projects. Some of the leading builders have now forayed into the Middle East destinations after learning the lessons of the trade from humble beginnings in the city of Kochi.