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Board REITs to ride office real estate recovery, absorption hits 8-qtr high

A severe third wave of the pandemic could reverse the ongoing upswing in REIT prices

Illustration: Binay Sinha
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Illustration: Binay Sinha

Sarbajeet K Sen New Delhi
The office real estate market is recovering from the disruption caused by the Covid-19 pandemic. According to JLL’s office market update released this week, net absorption of office space was 11.56 million square feet in the October-December quarter of 2021, the highest in the past eight quarters and up 86 per cent quarter-on-quarter. This augurs well for Real Estate Investment Trusts (REITs), which invest in commercial real estate (primarily office space).  

A REIT collects money from investors and invests it in a portfolio of real estate assets that yield rental income. Three REITs are listed on the exchanges currently: Embassy

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First Published: Jan 06 2022 | 3:16 PM IST

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