The biggest house market in India is on the brink of collapse, as the country’s housing market is in a tailspin, the latest data shows.
The Indian housing market, which was already facing an acute shortage of houses in March 2016, is now in the grip of a housing bubble that has created the kind of demand for houses that is only growing at a blistering pace, the data shows, as measured by a composite index of five indicators.
The index shows that the demand for housing is at a six-month high and that there is still a big supply gap, the most recent data showed.
A total of 4,973 properties have been listed for sale in the past two weeks.
A whopping 87,521 are on sale.
The market is at its lowest level in six months.
At the same time, the number of houses listed for rent is also at a low.
In the past three months, the index has registered a sharp decline.
According to the data, only 14,817 properties have gone on the market for sale.
A big portion of the current inventory is held by the government-controlled Housing and Urban Development Corporation of India (HUDC) as well as a number of private developers.
The number of homes listed for rental has also fallen.
In April, the HUDC held 2,096 properties for sale, while in May, it held 1,073.
The share of those properties in the inventory has been falling steadily since April, from 17.4 per cent in April to 12.3 per cent last month.
According to data from the Department of Statistics, the share of all housing properties listed for a rental for a one-month period stood at 12.9 per cent.
This percentage has fallen to 8.3% for a two-month rental period.
This is a major factor that has driven down the prices of properties.
According the data released on Tuesday, the average price of a house in the last six months was Rs 12.75 lakh, a sharp drop from Rs 17.35 lakh in March.