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A Composite Indicator of Realty Sector Activity in India

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  • Upreti, Priyanka
  • Handa, Akanksha
  • Chaudhari, Dipak
  • Ghosh, Saurabh

Abstract

The realty sector plays a crucial role in India in terms of employment generation, access to housing and as a major source of saving in physical form, besides direct contribution to the country’s Gross Value Added (GVA). In this study, we estimate a dynamic factor for housing (DFH) from a range of available high-frequency indicators of real estate activity. Our empirical findings indicate unidirectional causality from DFH to GVA with evidence of the first and second-round impact of revival in DFH driving recovery in GVA. Our empirical results also indicate the critical role of counter-cyclical fiscal and monetary policy measures, housing sector reforms and other policy incentives for the housing sector in reviving construction sector activity and GVA growth in the post- COVID period.

Suggested Citation

  • Upreti, Priyanka & Handa, Akanksha & Chaudhari, Dipak & Ghosh, Saurabh, 2021. "A Composite Indicator of Realty Sector Activity in India," MPRA Paper 111059, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:111059
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    References listed on IDEAS

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    More about this item

    Keywords

    Construction sector; economic growth; dynamic factor model; Granger causality;
    All these keywords.

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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