MUMBAI : Investors in commercial real estate, including listed real estate investment trusts (Reits), are likely to see a fall in rental yields in the coming months as leases expire and pandemic fears depress fresh leasing.
There are three listed Reits in India—Embassy Office Parks, Mindspace Business Parks and Brookfield India Reit—that invest in grade-1 properties.
Since the pandemic outbreak in March 2020, vacancies at office properties have risen by 300 basis points (bps) to touch 16.6% in June 2021 and are expected to rise 200-300 bps this fiscal year, according to ICICI Securities.
This is mainly due to the devastating second wave in April, which is expected to keep ‘work from home’ as the norm in the foreseeable future at many