Real Estate
Hiranandani: Corporates, Banks Must Build Rental Homes
By GeoSquare News Desk · Published 2026-11-02
Amid the growing affordable housing crisis in Maharashtra, prominent real estate developer Niranjan Hiranandani has proposed a new model involving companies, banks and philanthropic trusts like the Tata trusts to build rental homes. The suggestion comes as the state grapples with a severe shortage of low-cost rental options, especially in urban centres like Mumbai, Pune and Nagpur.
Why Rental Housing Needs Private Participation
Hiranandani argues that the government alone cannot meet the massive demand for rental housing. By roping in corporates, banks and trusts, the development of rental properties can be scaled up quickly. Banks could finance large-scale rental projects, while companies and trusts can provide land or capital. This approach would also create a steady income stream for investors, making it an attractive asset class.
Impact on Maharashtra Property Market
For property buyers and investors in Maharashtra, this move could open up new opportunities in the mid-income and affordable segments. Rental housing projects backed by institutional players may bring better amenities and professional management, improving the overall living standards. It could also ease the pressure on home ownership, allowing more families to opt for long-term rentals instead of stretching finances to buy a home.
Industry watchers believe that if such a model takes shape, it could significantly alter the dynamics of the state's real estate sector. With increasing urbanisation and migration, the demand for rental homes is expected to rise further. The participation of large entities could ensure a steady supply, stabilising rental yields and making the market more predictable for investors.
While the proposal is still at an ideation stage, it has sparked a conversation about innovative ways to solve the affordable housing puzzle. For now, all eyes are on how policymakers and private players respond to this call for collaborative action.