With the quarter witnessing the highest quarterly gross leasing for a few listed players, coupled with expectations of rising demand for office space, it is positive for listed commercial developers as well as real estate investment trusts (Reits).
The recent rules on special economic zones (SEZs) and increasing lease activity by global capability centres (GCCs) are expected to boost both occupancies and rentals going ahead. This will not only benefit pure-play commercial asset owners such as the four listed Reits but also developers with significant office portfolios, such as DLF and Brigade Enterprises.
The immediate trigger for the stocks is the strong performance in the October-December quarter, as well as calendar year 2023 (CY23). The recovery in demand for office space has benefited Reits, as gross leasing saw an improvement in the quarter. Both Embassy Reit and Brookfield Reit posted their highest-ever quarterly gross leasing since their initial public offering.
The worry for the sector has been a significant quantum of exits, largely due to slowdown concerns in the software and information technology-enabled services (ITeS). This has resulted in net leasing (new leases less exits) being in the negative.
However, while exits have continued, the pace of the same has reduced, and all major developers have reported net leasing to be in positive territory in the quarter.
This story is from the February 26, 2024 edition of Business Standard.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the February 26, 2024 edition of Business Standard.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
Indians prefer credit over debit card for high-value payments
In June 2024, India saw a significant increase in the number of credit, debit, and prepaid cards, reaching a total of 1.451 billion cards—an 11 per cent jump from the previous year, according to the India Digital Payments report for the first half of 2024 (January to June) by payment technology service provider Worldline.
An Indian anthropologist ahead of her time
Urmilla Deshpande set out to work on a novel about an Indian woman in Germany in the 1920s based on her grandmother Irawati Karve when she stumbled on the opportunity to write her biography.
IAF plane makes inaugural landing at upcoming Navi Mumbai airport
An Airbus C-295 of the Indian Air Force (IAF) touched down at Navi Mumbai International Airport (NMIAL) on Friday, marking the formal inaugural flight landing at the place. A Sukhoi SU-30 fighter jet did a low fly-by at the airport to test the 3.7-km long runway in the presence of Maharashtra Chief Minister Eknath Shinde, his deputy Devendra Fadnavis and Murlidhar Mohol, Minister of State for Civil Aviation and Co-operation.
Less than 33% of youth can search Net, transact online
Less than a third of those in the 15-29 age group can \"search the internet; send or receive an email and perform an online transaction\", show the findings from the latest Comprehensive Annual Modular Survey (CAMS), released by National Statistical Office (NSO) this week.
TCS shares dip as analysts offer mixed outlook
IT sector is expected to grow considerably from Q4 FY25 onwards
NSE retains Nifty 50 for weekly contracts
The National Stock Exchange (NSE) has opted for the Nifty 50 index for issuing weekly option contracts following the Securities Exchange Board of India (Sebi's) one-exchange-one-benchmark mandate.
Compare lenders' costs; higher rates can offset benefits of offers
Footfall, enquiries, and bookings at car dealerships are rising, driven by attractive offers and promotions. These special deals typically start in October and run until the New Year.
Noel's appointment as Tata Trusts' chair signals continuity: Analysts
It will be business as usual for Tata group stocks post Noel Naval Tata's appointment as chair of Tata Trusts, said analysts. They added that the development will signal continuity.
Sebi intervenes in ₹45cr Trafiksol IPO irregularity
To undertake detailed examination into disclosures by the firm
India-focused funds log first weekly redemption in 19 mths
China resurgence, expensive valuation dim India appeal; midcap funds see 14th week of outflows