The COVID-19 pandemic has had a widespread and unforeseen impact on businesses in various fields including the real estate sector, which would have to adjust to a new normal, after the Government-imposed lockdown is lifted. We spoke with Robin Chhabra, Founder & CEO, Dextrus to understand the ground level effects of the pandemic and the lockdown on the co-working industry in particular.
Co-working was the most recent revolution in the commercial space leasing domain, which had started to emerge as a lucrative option for both owners of the space and those renting the space. However, this sector experienced one of the biggest fallouts from the slowdown due to the COVID-19 lockdown.
The entire business model of co-working is dependent on people going to physical spaces for their work. With the COVID-19 lockdown business will be dismal for a while and any recuperation can be expected only by July or September this year, if the lockdown is continued till May end at most.
The current economic slowdown can affect the liquidity of businesses, which can lead to decreased demand for the entire commercial real estate sector and a blockage in the revenue stream of the co-working sector. With adequate relief measures from the Government, however, things can turn around.
In a phased manner, commercial activity will be resumed in some time, giving hope to millions dependent on this sector. When the Government deems the right time for reopening businesses, companies will make sure that workers’ health is prioritised and workspaces are sanitised to the highest standards.