Reits keep lights on for office leasing as mkt flickers

Targeted tenant takeup and portfolio moves spotlight spaces peers leave dark

- RAM PRASAD SAHU

With average returns of 18 percent overthe pastyear, listed real estate investment trusts (Reits) have outperformed both the Nifty Realty and the Sensex.

Over the same period, Nifty Realty fell 15.5percent, while the benchmark was largely unchanged. Steady office leasing, the Securities and Exchange Board of India’s decision to reclassify Reits as equity instruments, and portfolio expansion have strengthened the sector’s appeal.

Leasing across the country’s seven largest office markets has stayed firm through the first three quarters (January-September). Leasing offtake has crossed 50.9 million square feet (msf), up 8percent year-on-year. Bengaluru leads the pack with leasing of 14 msf, making up 27 per cent of overall office space demand. Leasing in Puneand Chennai over nine months hasalready exceeded their full-year 2024 levels.