Market Quickview: Financial Sector Outlook 2022

Financial Sector Outlook 2022

CY 2022 has witnessed all the events of market sentiments that has made the stock markets volatile all throughout the year and are expected to remain the same in the next term.

Though, the Indian economy faced challenges regarding rising real estate prices, commodity prices and inflation being the major highlight of the year, the top seven cities in India saw a major growth in sales including housing sales.

Not only this, while all the major indices globally posted a negative return, Indian equities outperformed with a nearly 5% gain in 2022. Among the major laggards. Are the Nasdaq lost 33% followed by S & P below 20%, while Heng Seng lost 18%.

According to the results from Anarock’s most recent Consumer Sentiment Survey clearly indicated that if home loan interest rates rise above 9.5 percent, we can expect significant housing demand contraction,” said Anuj Puri, Chairman – Anarock Group, a real estate consultant. Housing sales were strong in the January-September period, reaching 2.73 lakh units, which was more than the 2.61 lakh units sold in 2019. The showstoppers of 2022 were the mid-range (Rs 40-80 lakh), premium (Rs 80 lakh-Rs 1.5 crore), and luxury segments (more than Rs 1.5 crore). However, affordable housing has been a challenging time, with more homebuyers in this segment choosing to wait and see. During the first nine months of 2022, the supply of affordable housing fell to 21 percent of the approximately 2.65 lakh units rolled out in the leading seven cities in the first nine months of 2022.

Between 2021 and 2022, the top seven Indian cities saw a 54 percent increase in housing sales, from 236,500 to 364,900 units. 63,700 housing units. New launches in the top seven cities kept up with sales, increasing by 51% from 236,700 units in 2021 to nearly 357,600 new units in 2022.

Not only in the real estate sector, but in the automobile industry, in November 2022, saw an approximate increase of 3,22,070 passenger cars being sold in the Indian market exceeding 3 lakh dispatches for the eighth month of this calendar year. However, dispatches fell by 4.2% when compared to October of last year. In all, the FOMO (fear of missing out) among new investors has created an insatiable appetite for ownership, with the majority of sales driven by end-users rather than investors. The sector will experience another boost if interest rates begin to reverse and the hesitant investors join the party.

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