REAL ESTATE INDUSTRY OF INDIA 2022: OUTLOOK AND CHALLENGES
- Credit Rating Agency in India
- Industry Report
- REAL ESTATE INDUSTRY OF INDIA 2022: OUTLOOK AND CHALLENGES
The IMF substantiates the thesis that financial conditions significantly influence prices in different parts of the market. A granular examination of the commercial real estate sector shows that prices of industrial and residential properties have surged globally since end 2020, but the worst-affected retail and office segments are on the stabilization path. With tightening financial conditions and Central Banks across countries in an aggressive rate hiking spree, the industrial and residential segments have taken a hit and the prices retail and office property have moved southwards because of infections, work from home, e-commerce and increased teleworking.
Debilities and disruptive effects of the commercial real estate market can endanger financial stability because of the inter-linkages and inter-dependencies of this sector with the broader macro-economy necessitating greater caution and effective macro-prudential policy to mitigate systemic risks.