Strong leasing activity to benefit Real Estate Investment Trusts

But slowdown in the US and rising interest rates could pose risks

With the calendar year expected to be a record one for commercial real estate, listed majors in the segment are set to be major beneficiaries.

The return-to-office trend has led to increase in leasing activity, higher occupancies, rising rental income and mark-to-market gains on renewals.

This will help real estate investment trusts (REITs) such as Embassy Office Parks REIT and Brookfield India Real Estate and Mindspace Business Parks REIT, which are a direct play on the upward trend in leasing of offices.

Property consultancy Knight Frank India highlighted that the commercial office sector hit a seven-quarter high in Q2 (September