Office rental demand held steady for many real estate businesses, even as a national lockdown imposed following the Covid-19 outbreak shifted workstations from office to home. Many property developers anticipate the demand to only rise soon. “This theory of work from home isn’t going to last forever. It’s only under compulsion that that’s happening”, property developers convey. “It’s a matter of time that everybody will start going back to office.”

There’s optimism in terms of office space as well, predicting that space requirements are likely to go up because of social distancing measures. “Earlier, offices used to pack up many people in a smaller space of 50-60 Sq. Ft per seat. Now that will go up to maybe even 160 or 200 sqft,” he said. A Bengaluru-based entrepreneur expects demand to be further fuelled by India’s burgeoning information technology industry.

“Demand will remain because India will be a hub for these services. There will be a lot more business within this segment.” The entrepreneur, however, estimates that it will take two-three quarters for the space demand to be realized as companies continue to grapple with operations and capex spending.

Outlook for the residential sector: Sales are going up as people seek larger and more outdoorsy spaces. Demand bolstered by a borrowing rate of 7%—a record low. Sales for residential properties picked up from June. Expect a further increase in September/October sales. High demand coming out of various metros, expected to open.

Source: www.bloombergquint.com