The second covid wave is going to impact the recovery of many sectors, including real estate. The commercial real estate sector, especially grade A offices, has shown resilience over the past year with good occupancy and rent recovery levels. This may impact the performance of real estate investment trusts (Reits), which invest the majority of their assets in rent-generating commercial real estate, at least in the short term. We believe that the Reit structure has permanently altered the face of the Indian office market. With this track record, an office Reit focused on catering to the Indian market should form a core component of any asset allocation strategy alongside equity and bonds for all retail investors.

Source: Mint April 25, 2021 20:37 UTC