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Not all real estate is made equal. Take the example of the office segment, which found its nose touching the real world avatar of force majeure.
The work from home and hybrid models, which caused ecommerce adoption to soar, leading to an all time high demand for warehousing, simultaneously resulted in a sharp drop in office and retail real estate demand.
The Office Is Still In Vogue
The second Covid wave was especially unkind to offices and with Omicron and Delta doing their tag team thing globally, uncertainties about a full return to the office loom large.
But, the collective corporate intention is clear. Nearly 80% employers are prioritising physical offices while being open to offer a greater degree of flexibility and choice to employees, per CBRE.2022 Will See Demand Revival
Digging Deeper
📎 Banks and financial institutions will be first to go back to normalisation, and IT and ITES will be among the last.
📎 Mumbai will see a higher and quicker rebound, while IT driven cities like Hyderabad, Pune and Bengaluru will see slower absorption initially.
📎 Mumbai will see a higher and quicker rebound, while IT driven cities like Hyderabad, Pune and Bengaluru will see slower absorption initially.
📎 Due to social distancing requirements, office space, which had dwindled down to 80-100 sq. ft. per staff, now stands at a mandatory 120 sq. ft. That's an increase of 20% to 30% in terms of space required per person.