Reits climb the office ladder even as valuations keep rungs in place

Realty index in the rearview as office demand pulls Reits out of a two-year slump

Even as concerns grow over the residential real estate market reaching its peak, the outlook for office real estate remains strong, with listed real estate investment trusts (Reits) standing to benefit from sustained demand in the segment.

 

A recent HSBC report flagged early signs of a slowdown in the residential sector. Analysts Puneet Gulati and Akshay Malhotra highlighted factors such as declining unit sales, uneven city-wise performance, plateauing apartment sizes, and a bottoming out of unsold inventory as indicators of a maturing market.

 

While some brokerages have cut estimates and target prices for listed residential players, commercial real estate and