Advertisement
When should a housing society in Mumbai start considering re...
From GST on JDAs to SEBI’s REIT reclassification and the S...
Stay ahead in the world of real estate with our daily podcas...
Stay ahead in the world of real estate with our daily podcas...
The IMF has revised India's FY26 GDP growth forecast down to 6.2% from 6.5%, citing global trade tensions, slower global growth, and tighter financial conditions. Despite the cut, India remains one of the fastest-growing major economies, with FY25 growth pegged at 6.8%, driven by consumption and infrastructure spending. The real estate sector continues to support urban demand, with housing launches and commercial leasing rising. However, the IMF warns of volatile capital flows and geopolitical risks. Inflation is projected at 4.6% for FY26, within RBI's target range. Developers may defer luxury launches, but affordable housing pipelines stay strong amid stable domestic fundamentals.
The International Monetary Fund (IMF) has marginally lowered India's GDP growth forecast for the financial year 2025-26 to 6.2%, down by 30 basis points from its earlier projection of 6.5%. Despite the cut, the IMF maintained a stable economic outlook for India, citing resilient domestic demand and government-led infrastructure spending as strong counterweights to global headwinds. Advertisement
In its April 2025 edition of the World Economic Outlook, the IMF attributed the revision to increased trade tensions, slowing global growth, and tighter financial conditions worldwide. The multilateral agency also warned of persistent inflation in advanced economies and lower-than-expected growth in China, which together pose downside risks to emerging markets like India.
For FY25, India's GDP growth projection remains unchanged at 6.8%, which places the country among the fastest-growing major economies globally. This is largely driven by robust private consumption, strong manufacturing output, and continued investments in real estate and infrastructure projects.
Economists tracking the Indian economy believe the real estate sector particularly residential and warehousing segments continues to play a significant role in sustaining urban demand. Data from Knight Frank and PropEquity shows a 9-11% rise in home launches across top cities in Q4 FY25, and commercial leasing has been on the rise, especially in Tier 1 cities like Bengaluru and Hyderabad.
However, the IMF has cautioned that capital flows into emerging markets could remain volatile due to expected interest rate hikes in the US and Europe. It also flagged geopolitical conflicts especially in West Asia and Eastern Europe as unpredictable variables affecting global investor sentiment.
For India, inflation remains within the Reserve Bank of India's comfort zone but could rise due to higher commodity prices and currency volatility. The IMF forecasts India's inflation to average 4.6% in FY26, within the central bank's 2-6% target range.
The IMF's latest outlook projects global growth at 3.2% in 2025, with the US expected to grow at 2.1%, China at 4.1%, and the Eurozone lagging at 1.3%. India remains a standout performer among major economies, but the gap is expected to narrow slightly as other regions recover from recent supply chain shocks and interest rate cycles.
While the IMF report itself may not cause immediate market disruption, developers and institutional investors are likely to factor in the broader caution it signals. In Mumbai and Delhi-NCR, developers are expected to delay some high-ticket project launches until after the Q2 FY26 policy reviews. However, affordable and mid-income housing pipelines remain robust. India's macro fundamentals remain strong, but global risks now loom larger in FY26. For investors,
5th Jun, 2025
25th May, 2023
11th May, 2023
27th Apr, 2023
Advertisement
Facebook
Whatsapp
