The shutdown has posed a serious problem for the lucrative and vibrant commercial segment, which has so far been a reliable mainstay of the Indian real estate sector.
While residential real estate segment was struggling for long, especially after demonetisation and implementation of reforms, demand for office space was growing till imposition of the nationwide lockdown to contain the spread of highly contagious Novel Coronavirus COVID-19.
Now, the shutdown has posed a serious problem for the lucrative and vibrant commercial segment, which has so far been a reliable mainstay of the Indian real estate sector.
The COVID-19 pandemic has proved that many office works may be done remotely through work from home (WFH) and employees may save the time of commuting from home to office and back by working from the safety of home, while companies may save lot of revenue by occupying lesser office space and reduce electricity bills on account of lower use of AC and lights, which may prove a major gamechanger for the commercial real estate.
“Once the lockdown period ends, companies would also lay more emphasis on cost optimisation and prefer flexible workspaces,” said Manas Mehrotra, Chairman, 315Work Avenue.
Apart from WFH, the need for social distancing would pose a challenge for time being to the cost effective option of Coworking, space for which may be taken on rent on a monthly, day-to-day and even hourly basis.
“While concerns around Covid-19 have also led to reduced footfalls in co-workspaces which have been growing at a rapid pace for the last few years, this blip could be temporary and last till precautions are deemed necessary. Most corporates would avoid capital expenditures and look to co-working facilities to expand their business” Mehrotra said.
“People need options and access to a collaborative environment for success in life and work. It’s an opportunity to show how the coworking models can also offer new solutions and make our economy more resilient in such circumstances. Hence a silver lining in all this is that this has offered coworking providers an opportunity to re-think their strategy and make the segment more attractive for consumers,” he added.