India needs real estate market indicator

November 21, 2008 by OPPE News

Trade bosses have called on the Indian government to develop a real estate market monitoring system to help keep the country in the financial pink.

The Associated Chambers of Commerce and Industry of India (Assocham) named the measure on a list of six new economic indicators it wants the government to adopt.

Assocham asked for the changes after the completion of a concept paper called New Indicators to Check Economic Uncertainties.

More detailed financial intelligence would help India better predict economic problems, the group said.

Assocham president Sajjan Jindal said:

“It is in the prime interest of the economy to have a close monitor on the activities across various dimensions including employment, construction, real estate, the non-manufacturing sector, external prices and consumer confidence.”

The organisation’s plan for a housing market index includes figures which would show demand and economic momentum connected to real estate.

Such a measure could help India to “insulate” itself from the knock-on effects of the US property crisis, the plan claims.

The indicator could be based on statistics monitoring sales of new homes, forthcoming deals, and traffic of prospective new purchasers.

Assocham’s proposals also include a plan to monitor construction in India, which would examine the the rupee value of new building in residential, non-residential and public projects.