[INDIA REAL ESTATE NEWS] Good morning everyone I am Rumi Dhar from Kama Group.|
Here I have important INDIA real estate news to share with you which is as mention under.
The prolonged lockdown and mass shift towards remote working by corporates and scores of
companies had resulted in a dip in demand for commercial and office spaces across the
country, particularly in metro cities. However, market and real estate experts predict that there
could be a gradual demand for commercial spaces in key metro cities of the country.
During the initial days of the pandemic, companies leapfrogged to adapt to the new work from
home (WFH) model with widespread anticipation that office space demand will see major
decline. The shift to WFH by several companies also gave office space tenants the leeway to
bargain with their landlords as many felt that as an increasing number of people started
working remotely, there was no need to have a larger office space and pay continuous
“Till the Covid-19 crisis struck, the office market in India had been witnessing substantial
growth, both in terms of leasing volume and institutional investment. However, things now
stand at a critical juncture with revenue streams of most businesses being impacted adversely
by the pandemic induced lockdowns. As a result, decisions regarding space take up have been
delayed for the most part and there might be renegotiation of lease contracts going forward,”
observed Shrinivas Rao, CEO-APAC, Vestian Global Workplace Services.
At the same time, a number of experts hope that things may change and the market may pick
up at least in the next fiscal.
Rao feels that despite the merits of WFH, there is an ardent need for social connection for a
business to perform efficiently and thrive in the long term, along with parameters like
productivity, connectivity and data security that need careful consideration over time.
“While the office market will undoubtedly witness a decline in absorption on account of the
Covid-19 crisis, it is estimated to be short to medium term and the market is expected to pick
up in the next fiscal. Workplaces, in essence, would always remain a part of the social and
business fabric. Besides, the commercial real estate of the country is ruled by strong
fundamentals and it holds the potential to bounce back, given the strong IT eco-system in
place and the continued interest of investors,” pointed out Rao.
Real estate firm ANAROCK Property Consultants believe that conditions are expected to pick
up in key cities of India as Google, for instance, is currently on an office leasing spree as a
follow up on its massive investment plans in India over the next 5-7 years. The key target
cities for Google include Bengaluru, Hyderabad, and Gurugram, and this trend is likely to
gather pace in the upcoming quarter.
“The current trend will exist only for a short term or until Covid-19 uncertainties exist. As
soon as the vaccine hopefully before the end of the year is out, we may again see pent up
demand for commercial properties. The fact is that tenants have to adjust to new realities—
that of social distancing. Even while many companies may continue the WFH model (for a
certain percentage of their workforce) for an extended period, they will have to de-densify
the cluttered office spaces so as to adhere to the social distancing norms. This essentially
means that many may not actually give up on major real estate space. Also, many would
also like to take advantage of the negotiated rentals now and stick on to their spaces,”
remarked Anuj Puri, Chairman—ANAROCK Property Consultants.
Read more at: https://www.theweek.in/news/biz-tech/2020/08/05/real-estate-sector-hopes-for-a-quick-turnaround-by-next-fiscal.html
Have a nice day