The amount of rental housing in India has declined significantly over the years for various reasons, including the nature of the rent control laws. This paper assesses the impact of rent control for Mumbai, where it has created a shortfall in formal, affordable rental housing and contributed to distortions in the land market. The paper describes how "first-generation" rent control in Mumbai has led to deterioration of the existing rental housing stock, virtually halted the construction of new housing for rental in the city, and given rise to informal practices such as pagdi or key money. It also analyses the spatial concentration and composition of rent-controlled tenements in the city. It proposes reforms that would allow a gradual move towards rationalized rent controls, arguing that such second-generation controls will help incentivize investments in the rental sector and reduce the demand in the housing market at large, with implications for prices and affordable housing in particular.
Mumbai is facing significant challenges in terms of infrastructure deficit and paucity of land owing to its mismanagement and stringent regulations. These problems could be resolved-through policy tweaksif public organizations that own land, managed these assets efficiently. This would not only augment the effective land supply in the city, but would also enable public organizations to unlock the potential value of their land assets. This could help in financing infrastructure projects. The first step in realizing the locked values of public land would be an understanding of the extant situation of Public Land in Mumbai which suffers from several deficiencies: ambiguity in land ownership, inefficient utilization, unauthorized settlements, and rent seeking, which cumulatively distort land markets. This article attempts to deconstruct the situation of Ownership and Management Public Land in Mumbai using the Institutional Analysis and Development (IAD) Framework in order to clarify the underlying institutions that work in tandem to influence the outcomes and suggest an agenda for further research.
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