Perspective on Q2 GDP Data of 2021-2022

Nitin Bavisi, Group CFO at Ajmera Realty & Infra India Ltd said, “Real Estate sector holds the key to the country’s economic revival.” Q2 GDP Data of 2021-2022 has shown notable recovery, however it still has to bring back to what it was in the second quarter of 2019-2020. Real Estate is the backbone of the economy and has the potential to contribute up to 13% to GDP by 2030 if harnessed well. The first thing to note is that the real estate sector is the third largest sector in terms Foreign Direct Investment flow and second largest employment generator and third largest sector to induce economic growth. Real estate sector is expanding with multi-fold increase in demand and showcasing impressive growth. Keeping in mind rising inflation and increasing cost of raw materials, it will have an impact on the augmented purchasing power which in turn will affect demand for new properties. Massive rise in inflation will likely push RBI to hike rates. It will be important to stabilise the prices and watch out on the consumption. In the times to come, India’s economy is likely to gain momentum despite the risk of the new Omicron variant. With the continuous progress in vaccination, any disruptions are unlikely.