DDA nod for ARHC will give a boost to rental housing for migrant workers, say experts

With the Delhi Development Authority (DDA) approving inclusion of the Affordable Rental Housing Complexes (ARHC) scheme in Master Plan 2021, rental housing for migrant labour in Delhi has received a fillip.

Welcoming the DDA move, industry experts said this will pave the way for budget rental housing for poor and migrant workers living in urban areas in the Capital.

Anuj Puri, Chairman, ANAROCK Property Consultants, said, “DDA’s approval for ARHC is a major step forward for the Central government’s aim to provide affordable rental housing for migrant workers. The dearth of suitable affordable rental housing in major cities led to mass exodus of migrants who had zero income during the lockdown in early 2020. Delhi-NCR was one of the major regions to witness such an exodus during the period.”

“The ARHCs will ensure affordable and easily accessible rental housing in vicinity of the work places for urban poor and migrant workers in the Capital, which will have a major impact on the proliferation of slums as also enable new projects under ARHC,” said Dr Niranjan Hiranandani, National President, NAREDCO.

It was clear that the government needed to shift gears urgently in terms of affordable rental housing. Clearly guided by the extreme plight of migrant workers during the COVID-19-infused lockdown, ARHCs was given the Cabinet approval in July 2020.

Further, “a maximum overall FAR of 50% over and above the permissible FAR is also being provisioned, free of charges, to incentivize the concept of ARHCs in Delhi. The idea is to attract private developers into building such homes,” said Puri.

“This will not just provide affordable rental housing for urban poor and migrant labour, the projects will create jobs, and provide business opportunities for raw material suppliers, which will be positive for the economy,” Hiranandani said.

For developers too, it can be a viable option for building homes for their labour force who, in crises like this pandemic, will not be forced to return to their hometowns because there isn’t enough suitable affordable rental housing available in the cities.