Multiple tailwinds likely to reverse REIT underperformance in markets

Stocks of listed real estate investment trusts (REITs) gained by as much as 11 per cent over the last two trading sessions after the government amended the rules for special economic zones (SEZs).

The notification allows identification of non-processing areas within an SEZ enabling asset owners to re-lease these areas once the process is completed.

Vacancies increased after tax benefits for new units in SEZs from March 2020 were withdrawn. 

Commercial real estate players, especially large asset owners such as Embassy, Mindspace, Brookfield and DLF, were bearing the brunt of vacancies in SEZ space even as the non-SEZ space was