Hiranandani seeks 10-year incentives to push rental housing for working professionals

The Managing Director of Hiranandani Group, Niranjan Hiranandani, has called on the government to offer incentives for rental housing over the next 10 years, with private companies, banks, financial institutions and charitable trusts building the homes. He made the proposal at a summit in Mumbai, and reports of his remarks were published on 2 November 2026. The proposal is a policy view by a developer. It is not a government decision, and no new scheme, rule or tax change has been announced.

What was proposed

Mr Hiranandani said traditional affordable housing has become hard to deliver because of high land prices, construction costs and government charges. He said returns on residential investment of 2 to 3 per cent discourage developers and institutional investors from the segment. He argued that rental housing could fill the gap, and compared India with the United States, where he said about 50 per cent of people live in rental housing.

His proposal has three main parts. First, the government should incentivise rental housing for 10 years. Second, the scope should extend beyond industry to services employers, including banks, financial institutions and large corporate employers, which he said could house their staff. He named Reliance and HDFC as examples of firms that could do so. Third, charitable institutions should be allowed to play a bigger role. He specifically urged that charitable trusts, including Tata Trusts, and CSR funds be allowed to build rental homes.

He also raised commuting. He said people living in Virar and Vasai who work in South Mumbai offices face a journey he described as not making sense, and suggested that housing near workplaces could be one answer. He said tax concessions could improve the economics of rental housing and draw institutional capital into it.

The figures behind the argument

In separate remarks dated 1 November 2026, Mr Hiranandani said that when he sells a home at Rs 40,000 per square foot in Mumbai, Rs 20,000 of that goes to the government first. He cited the Economic Survey 2025-26 for the view that the share of affordable housing, defined as units below Rs 50 lakh, in India's top eight cities fell from 52.4 per cent in 2018 to 17 per cent by 2025. The same Survey, as he cited it, puts cumulative affordable housing demand in India by 2030 at 30 million units, based on a Knight Frank–NAREDCO report.

The Survey also notes that affordable housing in many cities has moved to outer areas where land is cheaper, and that these areas often lack adequate infrastructure, including links to jobs and mass transit.

What it means for buyers, renters and lenders

For home buyers, the proposal changes no price, tax or purchase rule. For renters and workers, it points to more rental supply in cities, but it does not set rents or tenancy terms. For investors and developers, the proposal depends on tax treatment that has not been decided. Its success would depend on whether rental returns can be raised to attract long-term capital.

For lenders, the reporting on the proposal noted that banks would need to test project viability, tenant affordability, cash-flow sustainability and developer risk before financing long-term rental projects. That assessment is standard lending practice and is not a position taken by any bank on this proposal. No bank, Tata Trusts, Reliance or HDFC statement on the proposal has been reported.

What happens next

No government decision, consultation paper or deadline on rental-housing incentives has been announced. The 10-year horizon is Mr Hiranandani's request and is not a scheduled policy. Buyers and renters should treat the proposal as a discussion point until the government or the tax authorities publish a notified scheme, with its eligibility, tax treatment and start date. Developers considering rental projects should wait for those terms before changing their plans.