A recession is a phenomenon when economic growth contracts for two consecutive quarters accompanied by rising unemployment. While there are talks of recession in the developed economies of the USA and some European countries during 2023, the world economy will continue to grow albeit at a moderate pace; and emerging markets including India are recording relatively better GDP growth numbers compared to their developed counterparts.
As far as the domestic demand is concerned, we think it is ring fenced on account of resilient Indian economic growth and long runway for sales growth in sectors like housing and warehousing. We expect these segments to be relatively unscathed by the upheavals expected in the developed economies of the USA and Europe.
Some segments like office and capital flows will be influenced by the economic conditions in the developed markets given the interlinkage of client segments. As we move ahead to a comfortable hold on the monetary tightening and price stability targets of central banks, we expect the Indian real estate to capture increased investment and business opportunities given the premise of availability of high skilled talent, business friendly government policies and improvement in global competitiveness index.
- Vivek Rathi, Director Research, Knight Frank India
