NAREDCO Maharashtra Seeks Policy Push for Rental Housing and Residential REITs
Mumbai, Maharashtra | September 1, 2026: Real estate industry body NAREDCO Maharashtra has called for policy changes to strengthen India's rental housing market, improve access to finance and create a regulatory framework for residential Real Estate Investment Trusts (REITs).
The association said rising property prices in major cities are making homeownership increasingly difficult for middle-class and lower-income households, creating a need for a stronger organised rental housing ecosystem.
Rental Housing Needs Policy Support
NAREDCO Maharashtra President Kamlesh Thakur said rapid urbanisation and rising housing demand require greater policy attention towards rental housing.
According to the association, residential property prices have increased significantly in major urban centres over the past four to five years, making homeownership challenging for many households.
NAREDCO has sought:
- Incentives for large-scale rental housing development
- A clearly defined rental housing policy
- Greater housing supply in urban areas
- Measures to improve housing affordability
A stronger rental market could provide an alternative for households that are unable to purchase homes at prevailing prices.
Residential REIT Framework Proposed
The association has also called for a suitable regulatory framework for residential REITs.
India's listed REIT market has largely developed around income-generating commercial properties such as office assets. NAREDCO believes residential REITs could bring institutional investment into the organised rental housing segment.
Such a model could potentially allow investors to participate in rental income from professionally managed residential portfolios while helping developers access a broader pool of capital.
Industry Seeks More Domestic Funding
NAREDCO Maharashtra has also urged policymakers to strengthen India's domestic financial ecosystem for real estate.
The association wants measures that can:
- Improve access to institutional finance
- Encourage domestic capital participation
- Increase funding availability for developers
- Reduce dependence on external sources of capital
- Support investment and employment
The industry body said deeper domestic funding could help create a more financially sustainable real estate sector.
Simpler Approvals and Tax Policies Also Needed
Along with financing, NAREDCO Maharashtra has called for simplification of taxation and approval processes.
The association believes smoother regulatory procedures could reduce development costs and help developers bring housing projects to market more efficiently.
For homebuyers, lower development costs and increased housing supply could potentially improve affordability over the longer term.
Real Estate Summit to Focus on Foreign Investment
NAREDCO Maharashtra will host the Real Estate & Infrastructure Investors' Summit 2026 (REIIS 2026) in Mumbai on September 3.
The summit, themed 'Re-defining India's Growth Story', is expected to bring together developers, financial institutions and foreign investors.
The association estimates that the event could help attract around ₹10,000 crore in foreign investment into Indian real estate.
Why This Matters for Homebuyers and Investors
The industry's push for rental housing and residential REITs comes at a time when urban housing affordability remains a major concern.
A larger professionally managed rental housing market could provide more options for people who prefer renting over purchasing, while residential REITs could introduce new investment channels linked to rental income.
For the broader property market, greater institutional participation could also support the development of organised housing projects and rental communities.
What Happens Next
NAREDCO Maharashtra is expected to take its policy recommendations forward through discussions with central and state governments and industry stakeholders.
The upcoming Mumbai summit will also provide a platform for developers, financial institutions and investors to discuss funding and investment opportunities.
The success of any proposed rental housing or residential REIT framework will ultimately depend on how policymakers address regulation, taxation, financing and project viability.