On the heels of the release of a new report that shows the median income of people renting out an apartment in India is $2,800 per month, the Indian government is looking to simplify its housing rules to encourage the use of Airbnb.
According to a report from the National Housing Authority (NHA), India is home to more than one million apartments, the vast majority of which are rented out as vacation rentals.
The average apartment costs about $1,000 per month to rent out and, as of March 2018, a median rent for a two-bedroom unit in Mumbai was $1.7 million.
However, the report notes that the government’s housing laws have been struggling to catch up with rising rents in the past decade.
The NHA, however, says that it is considering allowing Airbnb and similar services to be used in rental accommodation.
According to the report, the country is home of around 2.5 million Airbnb listings, and the number of properties being rented out for Airbnb and other online services has increased by almost 2 million since 2012.
The government has also introduced a crackdown on online booking sites such as Priceline and Booking.com, which are used to book rental properties, as well as banning short-term rentals and short-stay hotels.
The new regulations are expected to come into force in February 2019.
Airbnb is also looking to use these rules to attract more people to its services.
In the first six months of 2018, the company made an additional $30 million from advertising, travel and other activities to reach its 2.2 million Airbnb guests in India.
The company is also planning to set up an India office, which is expected to open in 2018.
Airbus, a German-based travel agency, has also started offering short- stay hotel reservations to its clients in India, as it aims to reach 2.8 million users in the country by the end of 2020.
Airbnbs service, which connects travellers with their hosts for short stays, has already become a big player in the rental sector.
According to Airbnb, its platform has helped more than 2.6 million people book hotel rooms and Airbnb has added an additional 9.4 million properties to its platform since it launched in 2013.
The government plans to ease rules for Airbnb in the coming months.
Airbnb is currently banned in the capital, New Delhi, as per the Anti-Corruption Act.