That dream house: Real estate has some opportunity waiting to be tapped

If the real estate sector is properly managed, it could drive not just finance but demand for a range of products and services, writes T N Ninan

India’s housing market follows a home-ownership model, especially in the rural areas where rental arrangements are rare. Even in urban areas, 70 per cent of homes are self-owned; the rental market accounts for barely a quarter of the urban market. Still, that is a substantial number, so it is just as well that the government has brought out a model rental law for state governments to adopt. It will take a few years for the states to enact their legislation and set up special courts. Still, the new model law could fundamentally change the rental business, and housing itself.