The Indian commercial real estate market has been adversely affected by the COVID-19 pandemic. However, as the cases reduce and the economy recovers, companies are gradually coming back to operate from offices. It is expected that the demand for office spaces will increase in the coming times amid the benefits such workspaces provide.

The COVID-19 pandemic, which took hold in India in the last week of March 2020, has negatively impacted the country’s commercial real estate (office) market. To curb the spread of the virus, the Central Government instituted a nationwide lockdown. The same was followed by the Union Territories (UTs) and States. Throughout these lockdowns, offices had to remain shut, and even when some were allowed to reopen, it was with 50 percent or lower strength.

The phenomenon led to a decrease in the demand for commercial real estate across the top metropolitan cities of the country. Nevertheless, as the caseload has decreased and the vaccination numbers have gone up significantly, companies are exploring whether to return to offices.

On the issue, Aditya Kedia, Managing Director (MD), Transcon Developers, shares, “Work-from-home is a successful concept that has facilitated business continuity during the pandemic. However, as we come out from the viral contagion, working from an office is the only viable solution for sustained productive work. Therefore, the commercial real estate sector is only going to do better in the coming times as we shall see healthy occupier demand.”

 

“The upward movement in the country’s economy will only work to bolster corporate demand”, he adds. The prediction is evidenced by Knight Frank research which showed that the total office space absorption across the top Indian cities was around 12.5 million sq ft in Jul-Sep 2021, a YoY growth of 168 percent.