The government’s demonetisation move is likely to bolster the prospects of the much-awaited listings of Real Estate Investment Trusts (REITs) that has so far remained a non-starter. Owing to higher liquidity on account of expected transfer of liquidity from the informal sector to banking, government bond yields have seen a compression of 40 basis points since demonetisation was announced on November 8.
Such a change in yield implies a boost for prime office markets such as Bandra-Kurla Complex in Mumbai as office assets are likely to be revalued nearly 4% higher. Apart from this, expected reduction in interest rates through monetary policy is also likely to enhance returns from REIT structures that have so far remained unattractive for investors.
Read more: Economic Times
