India To Have A Housing Index Soon

Published: March 9, 2009 at 10:59 PM | Author: Administrator
News Source: Indian Realty News

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India is likely to have her own housing starts index. A Technical Advisory Group (TAG) set up by the Reserve Bank of India (RBI) has recommended the creation of a Housing Start-up Index (HSUI) to be based on newly-built residential units in urban India and compiled on a quarterly basis. The number of housing starts during a period indicates the demand and supply situation as reflected in conversion of building permits into actual starts. Housing starts are considered lead indicators of economic activity due to their strong forward and backward linkages with other sectors. According to TAG, the HSUI would be confined to newly-built residential units in urban India, whose construction is authorised through the issuance of building permits. The group made its recommendations after studying the practices followed in Canada and USA.