Hiranandani Calls for 10-Year Rental-Housing Incentives With Companies, Banks and Trusts as Builders

What was proposed

Speaking at the News18 Rising Bharat Summit in Mumbai, Niranjan Hiranandani urged the government to incentivise rental housing quickly and for the next 10 years. He said the aim should be to encourage private companies, banks, financial institutions and charitable trusts to build accommodation for working professionals.

He argued that traditional affordable housing has become hard to deliver because of high land prices, construction costs and government charges. He said that when he sells a house for Rs 40,000 per square foot in Mumbai, Rs 20,000 goes to government first, according to remarks he made on 1 November 2026.

• Extend housing incentives beyond the industry to service-sector employers, including banks, financial institutions and large corporate employers. He named Reliance and HDFC as examples of firms that could take part.
• Revive the role of charitable institutions in providing affordable rental accommodation, including Tata Trusts and CSR funds building rental homes.
• Consider tax concessions to improve investment economics and attract institutional capital.

The figures behind the argument

Hiranandani said returns on residential rental investment of 2 to 3 per cent discourage developers and institutional investors from the segment. He proposed tax concessions as one way to change that calculation. No tax change has been announced.

He cited Economic Survey 2025-26 data showing that in India's top eight cities, the share of affordable supply (units below Rs 50 lakh) fell from 52.4% in 2018 to 17% by 2025. The same survey estimates cumulative affordable housing demand in India at 30 million units by 2030, citing a Knight Frank–NAREDCO report.

He compared the position with the United States, where he said about 50 per cent of people live in rental housing, and said rental housing appeared to be the only alternative for India.

Commuting and workforce housing

On commuting, Hiranandani pointed to people living in Virar and Vasai and travelling to South Mumbai offices, which he said does not make sense. He suggested service housing near workplaces as a remedy. The Economic Survey notes that in many Indian cities affordable housing is increasingly built in peripheral areas where land is cheaper, and these areas often lack adequate connectivity to jobs and mass transit.

What it means for buyers, renters and investors

• Home buyers: The proposal does not change any price, tax or purchase rule. Hiranandani's argument is that land, construction and government charges put homes beyond many ordinary buyers' reach.
• Renters and workers: The proposal aims to expand the supply of affordable rental homes, particularly in urban areas where workers face long commutes or spend a large share of income on housing.
• Investors and developers: Low rental yields are the stated barrier. Any change would depend on incentives that have not been announced.
• Banks and lenders: Long-term rental projects would require assessment of project viability, tenant affordability, cash-flow sustainability and developer risk. This is commentary from the outlet covering the proposal, not a statement from any bank.

About the Hiranandani Group

The Hiranandani Group's flagship is an integrated township of more than 250 acres at Powai, Mumbai. The group also has townships in Thane, Panvel and Chennai, and has diversified into education, healthcare, hospitality, infrastructure, entertainment and organised retail. The company says it has delivered about 35 million sq ft of homes and 15 million sq ft of offices and retail; this is a company claim and has not been independently audited.

Hiranandani has made several public remarks on affordable and rental housing in 2026. In May 2026 he said rental housing could become a long-term solution similar to the commercial real estate model, and that CSR money and charitable trusts would need to contribute. On 1 November 2026 he said affordable housing had been largely destroyed when asked about developers moving away from homes below Rs 50 lakh.

What comes next

As of 3 November 2026, no government decision, consultation or deadline on rental-housing incentives has been announced. The 10-year incentive horizon is Hiranandani's request, not a scheduled policy. Any change to tax treatment or incentives would need to come from the government and would be announced through official channels.