Real estate sector is alive and well as the death of the office is greatly exaggerated, BlackRock says
real estatesector is on track to gain from inflationand historically low rates, BlackRocksays.
- The analysts threw cold water on the notion that offices are on their way out, writing that new properties could see more demand.
- Overall, BlackRock expects a small decline in real estate demand, rather than a real-estate bloodbath.
The real estate sector is on track to gain from higher inflation and lower-than-expected interest rate hikes, though the effects will be far from uniform, BlackRock analysts wrote in a market commentary note.
The analysts threw cold water on the notion that offices are on their way out, writing that big, new, green properties could see more, not less, demand as the economy reopens. Employees' desire for flexible, dynamic workplaces alongside investors' growing calls for deeper ESG commitments could buoy the right properties, especially in cities.
Conversely, small, less sustainable properties - and the companies that own them - could see their fortunes diminish. Overall, BlackRock expects a small, heterogeneous decline in real estate demand, rather than a real-estate bloodbath.
Logistics firms, with extensive investments in properties like warehouses, could get caught between two opposing trends. On one hand, growing ecommerce demand will likely benefit the logistics sector, yet many parts of that market are "nearing peak valuation," according to the BlackRock note.
BlackRock flagged a more dovish
- Air Canada, Emirates, Air India and other airlines resume flights to Toronto and the tickets are priced up to ₹5 lakh
- I flew on a $65 million Gulfstream G650ER private jet and saw why it's a favorite of tech billionaires like Elon Musk and Jeff Bezos
- The collapse of Evergrande, one of China’s largest home developers, is “not a Lehman moment” but the fear may haunt steel and metal stocks in India
- Zee Entertainment, Infosys, HDFC Bank and other top stocks to watch out for on September 22
- IRCTC, IndiaMART, Cummins India and others have been under pressure in the last 5 days but still worth buying
- Noise ropes in Taapsee Pannu as its brand ambassador for smart wearables
- Online fantasy gaming startup earns almost five times Dhoni's Chennai Super Kings
- Samsung's first F-series phone with 5G support, Galaxy F42, to launch soon