Upper East

2020: Work-From-Home Increases Demand For Home Office Spaces.

The new normal of work-from-home due to the COVID-19 pandemic has caused a stir in the real estate market. Along with the decreasing property prices it is now observed that there will be a rise in the demand for home office spaces. This blog offers a brief on the real estate scenario for home office spaces. It will highlight topics including:
1. The rise in demand for home office spaces
2. Fall in demand for office spaces
The real estate agents are reporting an elevated interest for home office spaces by their buyers during this period of social distancing and work-from-home. A rise in the use of digital media to conduct communications has also been recorded. According to the experts, the battered and bruised real estate industry will take about a year to regain its strength.

Scenario of the India real estate

Property buyers are expected to move towards smart homes and integrated townships in the post-COVID-19 environment. The demand for residential real estate could elevate in 6 to 12 months once the effects of the pandemic start to wear off, and buyers will prefer moving into apartments that offer spaces for distinct activities. Research suggests that about one-fifth of buyers (21%) may return to the market in 6 to 12 months, as per the sentiment witnessed in May.
According to the experts, 80% end-users and 90% of investors would prefer homes that are smart and come with carved-out work areas as work from home will be the norm. Integrated townships too will be in demand. Reports also suggest that Homes with carved out office-like workplaces would be attractive to nearly 24% of end-users. At least 30% end-users and investors showed a willingness to pay a premium for homes that would incorporate a wellness concept. Real estate developers are now in the process of enriching the lifestyle of the public by offering high-end services that satisfy the daily essential requirement for various activities easily. Upper east 97 is one of the leading real estate developers offering luxurious spaces with brilliant amenities to revive your energy. They offer amenities including a swimming pool, golf put, box cricket, entertainment zones, and jogging track. If you are in search of a property in Mumbai either to reside or for real estate investment, Upper east 97 is a great choice.

Demand for office spaces post COVID-19

Research suggests that office space demand may fall by 5-15 percent as corporates look to adopt to work-from-home (WFH) policy. However, office spaces will not continue on losing their demand due to the series of challenges posed by work-from-home like data privacy, staff productivity, team management, and punctuality. This minimal impact on office demand in the medium term could get compensated from additional space that corporates might need to maintain social distancing among staff. Knight Frank India CMD Shishir Baijal said, “WFH will co-exist, but office space will not lose its importance as a strategic tool for corporate culture development and a source of competitive advantage. More formulae will be devised which will include “work from near home” alongside work from office and WFH. This will, in the long term, ensure there will be office developments not only in the top 8 cities but also in smaller towns, where employees originate from. Social distancing is here to stay until a viable treatment for COVID-19 is found, which will require office users to maintain or acquire more space to accommodate the existing team.”

• Home ambiance and amenities

The increase in traffic, population, and urbanization leave a desire for a more tranquil lifestyle. Real estate developers offer estate projects that often involve all necessary amenities within a decent distance from the residence. People need larger spaces to enjoy a personalized experience of activities that otherwise would require you to move out of your home. This sense of security in times of a pandemic is enough motivation for people to desire larger spaces with the necessary amenities at hand. Many real estate projects create entertainment zones for the residents to provide the comfort of enjoyment while remaining within the limits of the residence. The social distancing norms imposed restrict one indoors making it difficult to function in various aspects. Gated communities can also be lucrative for prospective property buyers in search of a safe and secured residence.
Research suggests that office space demand may fall by 5-15 percent as corporates look to adopt to work-from-home (WFH) policy. However, office spaces will not continue on losing their demand due to the series of challenges posed by work-from-home like data privacy, staff productivity, team management, and punctuality. This minimal impact on office demand in the medium term could get compensated from additional space that corporates might need to maintain social distancing among staff. Knight Frank India CMD Shishir Baijal said, “WFH will co-exist, but office space will not lose its importance as a strategic tool for corporate culture development and a source of competitive advantage. More formulae will be devised which will include “work from near home” alongside work from office and WFH. This will, in the long term, ensure there will be office developments not only in the top 8 cities but also in smaller towns, where employees originate from. Social distancing is here to stay until a viable treatment for COVID-19 is found, which will require office users to maintain or acquire more space to accommodate the existing team.”
He noted that employers now feel that WFH could be an alternative workplace strategy. He said office space leasing will decline in 2020 due to delays in decision making by the corporates. Anshuman Magazine, Chairman & CEO – India, South East Asia, Middle East & Africa, CBRE, said, “Given the fact that the COVID-19 situation is fluid and ever-evolving; it’s too early to call anything a trend, as yet. Office space absorption would continue to remain dominant. Anshul Jain, MD (South East Asia and India), Cushman and Wakefield, said, “Our current situation has forced us to work from home and we all have done a splendid job without a doubt. But it was always clear that this was temporary, and there weren’t any distractions. Most people are looking forward to going back to the office, reclaiming the routine and getting back the human interaction in their work lives. One must not overlook the fact that most people don’t have the ideal home work environment.”
One can however try to incorporate an ideal work-from-home environment with minor changes in the décor and lighting along with comfortable furniture. Apartments with spacious rooms can come handy for the work-from-home requirement. COVID-19 will be push organizations in the opposite direction and they will need more space per employee. Companies trying to fit employees in a restricted space might face struggling to begin working from the office spaces again. Booming sectors like technology and e-commerce are already more likely to embrace virtual working. Twitter CEO Jack Dorsey has said that employees can work from home permanently if they want to. Arnab Ghosh, National Director, Fitout at Colliers International India, said, “Work-from-home is a new reality today because of an unprecedented pandemic, but for it to be a norm, it needs to overcome quite a few social, cultural, and infrastructural challenges.”
“Going by the recent feedback from the industry, the concept is here to stay. The current situation is expected to impact the commercial office space take-up in short to mid-term (6-12 months) in India. The lack of clarity of how to house the employees at the workspace during these times is bound to delay the decision making, thereby affecting the absorption of office space by at least two to three quarters,” Shrinivas Rao, CEO-APAC, Vestian, said.
To conclude, there is an intense desire among property buyers to opt for residential properties with efficient home office spaces. The work-from-norm is believed to stay with us for a longer duration until a vaccine to combat the virus is introduced. Hence, potential homebuyers will look for apartments with the potential of providing essential amenities that do not require them to travel a long distance. They will also look for spaces that can be effectively turned into office spaces for convenience. Office spaces are likely to lose their demand, but not for long. Experts predict that office spaces will be back in demand in the post-COVID-19 environment.