New Delhi, Sept. 18 -- Real estate investment trusts (Reits) are in the limelight following the Securities and Exchange Board of India's recent decision to reclassify them as equity instruments, a change from their earlier categorization as hybrid instruments. This move paves the way for their inclusion in equity indices, higher mutual fund allocations, and increased participation from institutional investors.

The timing couldn't have been better. The outlook for Reits appears positive, driven by strong demand for high-quality office spaces in major Indian cities. Leasing activity from domestic companies in the BFSI (banking, financial services, and insurance) sector, along with flex spaces and global capability centres (GCCs)-foreign fi...