The students in Gujarat and those coming from other states will be able to avail rental homes at much cheaper rates than the market price. The Gujarat government is all set to announce its new Affordable Rental Housing Complexes (ARHC) scheme in a week or two.
Under the ARHC scheme, the government will be tying up with private players, under the public-private partnership (PPP) model, to utilise vacant houses in the Gujarat Housing Board and other schemes.
The developer or property management firm will be given vacant houses on a fixed rental model under which the firms can rent it out to lower income group (LIG), economically weaker section (EWS), students and others.
Similarly, the government also has another model in which the developer can come up with their own project and construct dwellings as per given specifications. Here, the developer will be also getting 50 per cent more FSI (Floor Space Index) for free. This will help reduce the overall cost of the construction.
However, the developer will have to get the rentals approved by the government so that it’s lesser than the prevailing market rates.
ARHC is basically the central government scheme and the state government is all set to replicate it in Gujarat. The scheme would have been better if the government would have announced heavy subsidies for the construction under this category.
There is another view that considering the cost of land in the municipal corporation and urban development authority areas, rental projects in urban areas don’t seem viable