This could be a factor behind inflated prices. And, housing shortage at the beginning of 2012 was 18.78 million. If there is a liquidity crunch, this has the potential to create a sharp fall in housing prices, with destabilising consequences for the rest of the economy, as happened in the US in 2008.
JNU professor Amitabh Kundu, who headed the technical committee that authored the report, said: “If the houses were available to the homeless, squatters, slum-dwellers and those living in extremely congested conditions, the shortage would be much less.”
Sanjay Dutta, executive managing director (South East Asia), real estate brokerage firm Cushman and Wakefield, said: “It reflects the government’s skewed housing policy.”