India is likely to join the league of five developed nations, who have a housing start up index (HSUI) of their own, by the end of 2010. The work on preparing a database for the index has begun and, once it is started, the indices will be released on a quarterly basis. The housing index is viewed as a key indicator of economic activity in the
countries where it is being used, particularly in the last couple of years of economic meltdown for which sub-prime housing loan crisis in the United States is often blamed. Besides the US, the other countries having a housing index are the United Kingdom, Canada, Australia and Japan.
According to sources in the housing and urban poverty alleviation ministry, the National Buildings Organisation (NBO) is working on developing the indices for 30 cities. The work on collecting a database of statistics — on how many permits for construction of houses are being issued and on how many allotted plots construction has begun — for ascertaining the index is going on, sources said, adding that it was likely to be completed by December.
Collecting the data in itself is taking time as there were no mechanisms earlier to maintain and collate such data. In fact, when the initiative was taken by the ministry following consultations with the Reserve Bank of India, the latter had suggested to take up only seven cities and proceed further once the available data and its updation was properly organised.
However, sources said that the NBO has taken up 30 cities, most of which are currently being funded through JNNURM.