InvestorQ : Why are some of the realty companies like Embassy, Brigade and Prestige down so sharply in the last couple of months?
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Why are some of the realty companies like Embassy, Brigade and Prestige down so sharply in the last couple of months?

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12 months ago
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It has a lot to do with the commercial realty and rental business focus of these companies you have stated in your question. There appears to be trouble brewing among the commercial realty developers. Many of the south based developers like Prestige and Brigade as well as Embassy REITS of Mumbai have been quite active in commercial realty. Commercial realty and the rentals business had emerged as the big story over the last few years with limited off take for residential apartments. This had also enabled DLF to get fantastic valuations for its commercial franchise and helped the group reduce its debt substantially. However, with the COVID-19 and the mandatory Work from Home (WFH) strictures, most companies are thinking in terms of a more decentralized and distributed workforce. It is the uncertainty and a likely shift in workplaces that is spooking these stocks. Already, negotiations are on for rental cuts at this point of time.

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