REITs, strata sales attracting small investor to commercial real estate

Monopolised by large investors earlier, office realty can now be fragmented into smaller parcels of investments, making it easier for the small guy to take exposure

At a time when residential real estate is facing a downturn, with little price appreciation and lower rental returns, commercial real estate, particularly the office segment, has emerged as the favourite asset class of both global institutional investors and domestic investors, including high net worth individuals (HNIs) and retail investors. This is because the segment offers the potential for handsome rental returns along with capital appreciation.

In the past, investment in office real estate was monopolised by large investors and HNIs as it involves large investment. But today there is greater democratisation of this segment. Investment opportunities are opening up