Rent Control in Mumbai

For all you former, current, and future renters out there — rent these days is too high, right? What if you could pay the same rent your parents, or grandparents, paid back in the day? Sounds pretty good!

Now what if that low rent meant that your home was in such disrepair that it could literally collapse while you were sleeping? That’s one of the unintended consequences of extensive rent control currently playing out in Mumbai, India. Let’s take a look.


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44 comments

  1. HP taxes are paid on annual letting value which is higher of Actual rent or Annual lettable value(Which is of course higher)…Hence taxes would be higher than The rent itself…By keeping property unrented, Tax liability does not arises…

  2. Funny , how everyone jumps to blaming socialism. Rent control is a safety net. How it is done, along with other factors is what is important. If they have not raised rents enough, that is a problem. Also what have the wages in India been according to ratio to rent. If you are not careful, cities will all become a gated community for only the rich( think nyc) and rural/suburbs for the poor. Remember fuedalism. What happens when the economic base starts to go down and the majority are looking through the fence at the nice city they can not visit, let alone live in. Take a look at San fran,silicon valley. Rent in US has increase 60 % and wages have not kept up, what happens when everyone is apt poor. Do you see what is happening now in the US. Many people are thinking about living in motor homes and sheds, in the richest country in the world, the US will soon be nomads moving around following low wage jobs.

  3. Great video to show a real-world example of rent control's consequences, but I think this unfortunately won't convince any rent control advocates because it kind of glosses over the fact that there are some poor people who benefit from rent control, namely those in rent controlled units that they otherwise could never afford. As a former "hey rent control sounds like a good idea" person, I think the idea is borne out of empathy for those who are paying very high rents, so it would have been interesting to talk with a poor person who is negatively impacted by rent control by being blocked out of an area that is heavily rent-controlled or who pays a high market rate to subsidize their rent-controlled neighbords

  4. It is a violation of the right of Equality given by the constitution of India that one person has a right to get rent at the market rate while the other is deprived of the same right. When the rent control act in 1949 was passed it was applicable on all properties hence it did not violated the right of Equality.
    But now since it is applicable only on a few people it is a clear violation of the right of Equality.
    I request public, media and government to help and support landlords to get justice bcoz late justice means no justice.

  5. Hello sir. Thanks for uploading such informative videoes. I have a question, besides all this rent control stuff, why is it hard for landlords to make tenants leave their property. I mean it's their property and they have the right to have it back when agreement between landlords and tenants is over (if there is an agreement). Ofc an agreement can't be for 5 decades. Am I missing something? Please reply.
    Regards.
    Vidyanshu Mishra

  6. There is a direct relation between property income and poverty. A (status) underdeveloped country such as India or Thailand has about 50% of it's income from property, whereas less then 20% of income in the wealthy countries is from property income.

  7. Famous lines from a Hindi movie “date upon date date upon justice is not given what is given is a date” the court system is definitely slow and there are not enough judges half of the required post are empty

  8. High cost of real estate is already causing businesses to move out of Mumbai. Factories have closed and even all major service sector companies are establishing bases elsewhere. All new business and entrepreneurs are coming up from other places. Add to that global warming related business disruption due to heavy rains and flooding cost of doing business in Mumbai is going to rise. The city would plateau out and new urban centers will gain its share

  9. Wow! This is so much informative. And everything is absolutely true and correct information. I must say you did meet the right people who have the correct information and know-how of the market. The approval process is so tedious and and now it has even become worse with so many restrictions for small builders that it is further restricting the supply in the market and only well established companies are able to cater to upper middle class housing segment. This is a serious concern as it affects small businesses to enter the market and leading to the cascading effect. As rightly mentioned the cost of capital is so high and to worsen the problem the number of years to finish the project is high which results in lower NPV and in order to offset it -You got it – pass the cost to consumers.[And this is all not accounting for bribery] Also some fools think the prices are rising because the country is growing and they are the ones who are either uneducated or are politicians.
    India has the worst government problems and even the people are so stupid(in general) and uneducated(in general) that nothing can be done even in 100 years. I won't call the country even a developing country.

  10. So it is not really rent control, but the pandering to populist freebies that is the problem. If the govt had the guts to increase the rent with inflation, none of this would have happened.

  11. Doesn't matter, socialists and globalists know what these policies do, you can see it right here in the US in the ghettoized cities, you can see it in everything they do that has been done 100 times before by communists and others, they want as many people as possible living in poverty with no way out, how else to concentrate power over the masses?

  12. Hey guys I have a question, what if let's say all u.s factories went back to America obviously the prices would rise, but what would you call that? Inflation or deflation?

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