Several new trends were born from the Coronavirus pandemic, including work-from-home (WFH), which has brought in mixed fortunes for the real estate market. During the pandemic, this trend made it easier to work from home in a safe environment, but it negatively affected the utilization of office space as well as the impact on the lifestyle.
The pandemic lockdown has forced to shut the offices and people forced to work from home. Even after offices reopened in September 2020, social distancing norms and other hygiene protocols have restricted the staff strength in offices. This trend has affected negatively office space consumption.
According to Knight Frank India, the second quarter of CY 2020 was perhaps the worst hit due to the COVID-19 pandemic. Office realty saw a robust decline of 27 percent to 17.3 msf in H1 2020, with NCR and Pune experiencing substantial drops of 86 percent and 87 percent, respectively. Office leasing dropped by 37 percent year-on-year (YoY) to 17.2 msf (Note: Here msf means million square feet). Co-working spaces were also the worst hit.
WFH has both pros and cons for the companies across India. WFH has also been helping factors by saving on rent, electricity, and management, also cutting down the cost of transportation. Employees are too, can save the commuting costs.
WFH also has its challenges for companies, like the risks associated with data security. Some companies have been forced to set up IT infrastructure at the homes of employees who face the challenge of employee engagement.
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In the case of residential real estate, the WFH has affected it for the short term. As per Anarock, home sales in the top 7 cities reduced by 49, compared to H2 2019.
The residential real estate sector is a clear gainer. With the employees saving the various costs like transportation and other expenses along with the various government initiative for housing, led to the increased home buying.
Millennials have realized the benefits of home buying.Author
Rent differentials are huge as well. As per the developers, there is an increased demand in the 2.5 BHK and 3.5 BHK homes, so that the extra space can be converted into the workspaces. There is also increased demand for flexible spaces, ample open spaces, and amenities related to the health and well-being of the family. The demand for villas, farmhouses, rowhouses, is on the rise.
There are many ways in which WFH affected the real estate sector. We have tried to list some of them. However, if you have any questions or comments, you can reach out to us at email@example.com. Any concerns or suggestions you have will be taken into consideration.