Rising inflation and change in policy stance by the US Federal Reserve and other central banks including the Reserve Bank of India are seen as key risks for equity markets in 2022 including the new Covid variant Omicron
Real estate investment likely to deliver solid returns
As corporates are gradually shifting from the work from home (WFH) to work from office (WFO), demand for commercial real estate is likely pick up going into 2022, say industry experts. Meanwhile, the rising cost of construction is seen boosting demand for ready-to-move-in residential properties.
“Investments in the Indian real estate sector have remained resilient despite the headwinds triggered by the pandemic, adversely impacting the economy and business climate. For the nine months ended September 2021, investments were recorded to the tune of USD3.5 billion, almost 75% of the quantum seen in 2020. Favourable one-time bulk deals have been keeping the investment momentum strong in the last past few quarters. Interestingly, residential and industrial & warehousing sectors have emerged as major beneficiaries this year garnering a combined 36% of the investments. While the office will continue to remain a dominant sector, investments in residential and industrial & warehousing are likely to strengthen in 2022 aided by strong business fundamentals. Income visibility & stability, attractive valuations and identifying the dark horses will underline the investment ethos in 2022”, the Economic Times quoted Ramesh Nair, CEO, India and Managing Director, Market Development, Asia, Colliers as saying