Realty Growth shifts to smaller Cities

Posted On: 2014-09-23 22:05:13

New Delhi : 

    The Real estate sector has been witnessing a declining trend in big cities such as Bangalore, Kolkata, and Chennai, While the growth is noticeable in smaller cities labelled as tier -2  centres  like Dehradun , Bhopal and Hubli, according to the housing start Up index ( HSUI)  which was released on Monday.
   HSUI, an indicator of volume of construction in the housing sector during a certain period , covered 27 cities, across the country between 2009 and 2011 . The index will cover 300 cities soon. The first of - it's-kind initiative is a critical indicator of economic growth sectors like banking , mortgage , labour , steel, cement and paint. 

   India has joined a club of six developed countries - Canada , US , Japan, France, Australia, and New Zealand - which have a housing start - up - index. 

   The index showed a declining trend in the real estate sector in million - plus cities , while it indicated an upward movement in smaller cities.

    Housing Minister Girija Vyas said " The Contribution of reality sector is about 10% of the GDP and Hence , it is a key macroeconomic indicator, it will help both the private sector in assessing economic activities in a region , it will also benefit consumers and promoters "

   She said such trends were useful indicators of the pattern  of development in the country , which in turn would help policy- makers and administrators  understand the future focus and thrust areas not only in terms of housing provision , but all the associated infrastructure and civic amenities required,There are 254 ancillary  sectors which are related to housing sector directly or in directly like cement and iron .30 million people are involved in the sector which has an estimate market size of 2.5 lakh crore.

Source : The Times Of India - Mumbai (04-FEB-2014)