Policy rate – status quo stance to support growth-Dr. Samantak Das, Chief Economist and Head Research & REIS, India,

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New Delhi, October 09, 2021: “Sustained policy support and the progress of vaccination are important tools for restoring normalcy and recouping the economic growth lost during the pandemic period. The central bank’s decision to keep the policy rates unchanged is expected to act as key policy support to nurture the sustained growth of the economy. The confidence in the recovery of the economy is reflected in RBI maintaining the GDP growth forecast at 9.5% for the financial year 2021-22. The upward revision of the sovereign rating by Moody’s to “Stable” from “Negative” also supports the view that downside risks are receding. 

The real estate sector has acted as a forward-looking indicator of economic recovery if one were to look at the operational metrics of key asset classes. Commercial office space witnessed 8% YOY growth in net absorption at 5.85 mn sq. ft in Q3 2021, while residential sales grew by 65% on sequential quarter basis registering sales of more than 32,000 units in the top seven cities in India. The reduction in mortgage rates by various banks is expected to provide further boost to housing sales with the onset of festive season and improved visibility on economic growth. The growth in credit cycle is expected to benefit overall real estate sector which will also have ripple effect on other sectors.

Corporate Comm India (CCI Newswire)