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Real Estate DiscussionReal Estate DiscussionReal Estate Dis...Real Estate Dis...Real Estate Hav...Real Estate Hav...Area of future action in CochinArea of future action in Cochin
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 7/5/2009 7:51 PM
 

The developed countries in Europe have been pursuing social housing policies, which rested on a system of subjective and objective subsidies and massive construction of rental housing either by the local bodies or the housing associations.  The voluntary housing associations have been able to manage council housing with the help of subsidies provided by the government.  There are serious internal doubts about the sustainability of this approach in these countries in recent times especially due to the recession in the global market. 

Since the developing countries cannot afford the luxury of these subsidies nor huge sums for construction of rental housing units, they have earmarked huge sums of money for construction of dwelling units exclusively devoted to rental housing.  They have chosen to rely on instruments like Rent Control legislation to protect the low-income groups from arbitrary eviction on high rentals. 

The National Housing Policy document of India recognized the role of rental housing.  It proposes to encourage investment in rental housing through
 Facilitating access to land, institutional finance and high quality building materials at affordable costs
 Fiscal incentives
 Modifications in rent control laws

It has been generally assumed that the liberalization of rent control legislation would lead to a larger availability of such housing amenities.  When considering the rent being charged for luxury Villas Cochin City follows a different pattern and none of these luxurious amenities are now within the reach of people with small and marginal incomes.  The rents are so high and only the expatriates now rent out such villas, while on a short visit to the city.

 

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Real Estate DiscussionReal Estate DiscussionReal Estate Dis...Real Estate Dis...Real Estate Hav...Real Estate Hav...Area of future action in CochinArea of future action in Cochin

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