9.42         ndian   onom
     Harmonized Master List of Infrastructure Sub-sector  important than investing in their own houses that
     (given ‘infrastructure status’ by late 2017) which   is subject to local market risk. Nonetheless, the
     will benefit it in many ways:                        share of rental housing has actually been declining
          (i) Cheaper fund/credit (at lower rates of      in Indian cities since independence from 54 per
               interest) on longer tenure fund will be    cent in 1961 to 28 per cent in 2011. Though
               facilitated.                               the country has witnessed a decline in the share
                                                          of rentals, it is not uniform—it has been sharper
         (ii) Simplified process of approval (for
                                                          in the northern states (excluding the mountain
               construction of multimodal logistics
                                                          states). Rental is more prevalent in urban areas
               (parks) facilities which includes both
                                                          (31 per cent) than the rural (5 per cent), as per the
               storage and transportation).
                                                          Census 2011—with more urbanised states having
        (iii) Increased market accountability through     higher percentages of renting.
               regulatory authority and will attract
                                                          Vacant Housing: Despite the shortage of housing
               investments from debt and pension
                                                          in urban India (more than 18 million households
               funds.
                                                          in 2012), there is also a trend increase in vacant
          Apart from increasing trade, better             houses (11.1 million in 2011 from 6.5 million
     performance in logistics will augment the            of 2001). As per the Census 2011 vacant houses
     programme like Make in India, and also enable        constitute around 12 per cent of the share of
     India to become an important part of the global      the total urban housing stock. The number and
     supply chain.                                        share of vacant houses for some major cities are—
                                                          Mumbai has the highest number of total vacant
        housIng PolIcy                                    houses (0.48 million), followed by Delhi (0.3
                                                          million) and Bengaluru (around 0.3 million). In
     Housing is a key policy priority of the Government
                                                          terms of share of vacant houses to total residential
     today. With increasingly ‘fluid’ population
                                                          stock, Gurgaon ranks highest (26 per cent). The
     the housing policy need to enable horizontal
                                                          phenomenon of high vacancy rates is not fully
     or spatial mobility (i.e., movement within and
                                                          understood but unclear property rights, weak
     between cities) and vertical mobility (to climb
                                                          contract enforcement and low rental yields may be
     socio-economic ladder) as opportunities arise.
                                                          important factors. The spatial distribution of the
     The Economic Survey 2017-18 has highlighted
                                                          new real estate may also be an issue as the vacancy
     certain factors in this regard when the country is
                                                          rates generally increase with distance away from
     going for an ambitious scheme—Housing for All.       the denser urban cores.
     Two basic issues related to the sector is rental and
                                                               Home ownership is encouraged as part of
     vacant houses.
                                                          socio-economic policy in most part of the world
     Rental Housing: Such housing is important for        including India. While there is nothing wrong
     both horizontal and vertical mobility as it allows   in encouraging home ownership, it needs to
     people to access suitable housing without actually   be recognized that the rental market is also an
     having to buy it. Across the income spectrum,        important part of the urban eco-system. Housing
     rental housing is an important foothold into a       needs of India are complex and policies have been
     city for new arrivals, until they purchase their own mostly focused on building more homes and on
     homes. For rural migrants, in particular, whose      home ownership. In recent decades several factors
     financial portfolios may already be tied up in land  have constrained this market in the country,
     and livestock, it is access to shelter that is more  such as—rent control, unclear property rights