Model Tenancy Act is aimed at opening up of the vacant housing stock for rental housing purposes and helping bridge the trust deficit that exists between tenants and landlords by clearly delineating their obligations.
The deal was closed in December 2020 but was registered in April 2021, IndexTap quoted the registration dates as saying, adding the 2% stamp duty benefit has been availed for this deal (Representative image)
The Indian stock market continues to trade in the green led by realty stocks. Sensex is up 243.69 points or 0.47% at 52093.17, and the Nifty added 76.10 points or 0.49% at 15652.30.
Among the sectors, the realty index jumped 4 percent on June 3 after the Cabinet on June 2 approved the Model Tenancy Act for circulation to the States/Union Territories for adoption.
The Act is aimed at opening up of the vacant housing stock for rental housing purposes and helping bridge the trust deficit that exists between tenants and landlords by clearly delineating their obligations.
Also Read: Model Tenancy Act: What it means for you, how it will help, and other questions answered
Real estate experts say that clear-cut incentives to boost rental housing via a sound policy will positively help the government to further strengthen its Housing for All initiative.
As a result of this move, realty stocks are buzzing with the top gainers being Oberoi Realty which jumped over 9 percent hitting new 52-week high on BSE, followed by Mahindra Lifespace, Phoenix Mills, Indiabulls Real Estate and Prestige Estates which added 5-7 percent each.
Real estate experts say that the Act can fuel the rental housing supply pipeline by attracting more investors, and more rental housing stock will help students, working professionals and migrant populations to find urban accommodation, especially in COVID-19-like exigencies.
The Act will apply to premises let out for residential, commercial or educational use, but not for industrial use. It also won’t cover hotels, lodging houses, inns, etc. This model law will be applied prospectively and will not affect existing tenancies.
It seeks to cover both urban as well as rural areas.
Real estate stocks have been under pressure with the sectors showing negative growth of 8.6 percent between April 2020 and March 2021 due the impact of COVID-19, official data released by the National Statistical Office (NSO) showed on May 31.