Just as the Omicron variant led third wave was receding, the commencement of war in Europe in February 2022 sent crude oil prices spiraling, raising concerns around shortage of key commodities. With a resurgence of infections in China, Hong Kong, Europe and the United States, the pandemic effect lingers. However, due to a steep decline in the caseload in India, the containment measures for COVID-19 were scaled back by the end of March 2022. With nearly 86% of Indian adults having received both the vaccine shots, India is preparing itself for the next stage of pandemic response as the persistent threat of new variants cannot be ignored.
In its first monetary policy review for financial year 2022-23, the Reserve Bank of India (RBI) has kept the repo rate unchanged, maintaining its accommodative stance to support growth.
Taking a closer look at the economic scenario, both the manufacturing and services Purchasing Manager's Index (PMI) have remained expansionary, albeit at a slower pas in some countries and heightened supply side disruptions, the real Gross Domestic Product (GDP) growth outlook has been moderated to 7.2% for the current fiscal.
As we emerge from the pandemic situation with resilience, the growth in the residential market has been impressive for key Indian cities. Home-buyers are exhibiting a strong appetite for better housing which is translating into an upcycle for the residential market. Office space demand has been growing steadily which is visible in the enhanced leasing volume in the current quarter, a trend likely to stay in 2022.
The buoyancy in stakeholders' take on the sector reflects positively in the zonal scores, most of which have only inched up in Q1 2022. However, the scenario is dynamic, and we need to remain watchful.
Also Read:
The Real Estate Sentiment Index Report Q1 2022
What the Real Estate Sentiment Score increase means for Building & Construction industry India?