Housing Start-up Index

The Reserve Bank Of India will soon launch a Housing Start-up Index and this index would be ready by December.
What is a Housing Start-Up Index? 
Housing start up index (HSUI) tracks construction of new houses started in a particular period. It is a measure of the level of construction activity in a given period for a region and is considered as one of the leading indicators of economic activity. New starts pick up when the business cycle picks up.

How does such an index help? 
Business:Housing activity has a bearing on a number of other sectors such as steel, cement and construction labour. Moreover, investment in housing would at a later stage translate into increased purchases of other consumer goods such as furniture, furnishings and home appliances. Timely and quality data on housing starts can help these businesses plan better. The index will help the developers ascertain the risk of building in a particular area, as it will provide information about the construction activity happening across major cities. For instance, a developer will not enter a location where there excessive housing construction.
Policy-makers: The housing start index is one of the key leading indicators of the economic activity. It is a good measure of consumer confidence as only in a situation when they are confident about the future would they take on a big liability such as buying a house. Therefore, the index is one of the important input in monetary policy in the developed countries and is keenly watched. It can also help authorities detect property bubbles in their early stage.
Home buyers: Through this index, prospective buyer or seller will get a good idea of the future supply, helping them get a better fix on the likely trends in prices. The buyer/seller can compare the index price with the offer while deciding on a deal. The Index, also helps in tracking consumer behaviour as well as the investment trends geographically.

Which cities will be covered under the index 
The first phase of HSUI will cover 31 cities across the country. These will include all major cities like Delhi, Mumbai, Chennai, Bengaluru, Kolkata, among others. Eventually it will cover the rest of the country. Once operational, the data is expected to be printed on a quarterly basis.