NEW DELHI: With the outbreak of Covid-19 also known as Coronavirus, the commercial real estate sector in India may see considerable changes in coming years with companies keeping safety and health as key considerations.
MNCs are likely to re-evaluate their workplace strategies and properties giving importance to wellness, and sustainability in buildings may see greater demand in the coming years.
The current scenario may be a precursor to a shift in the idea of workplaces and hence Colliers International India in a recent report recommended that occupiers evaluate their density plan and seating arrangements in workplaces, keeping safety and health as key considerations. Currently, Indian workplaces are typically about 60-80 sq feet per seat.
According to the company, office sector is likely to see lower gross absorption of about 45-50 million sq feet in 2020, across the top seven cities, stemming from delays in decision-making, arising from the ongoing COVID-19 outbreak.
Occupiers may consider splitting up offices as a hub-and-spoke-model, into two or more locations in a city, the company said.
Megha Maan, senior associate director (Research), added, “Occupiers are likely to delay leasing decisions by a quarter, with some even taking a watch-and-watch stance. We believe that post the initial six months, flexible workspaces especially those focussing on adequate wellness and hygiene factors should see higher enquiries from occupiers.”
The company expects anticipate cash flows of small and medium enterprises to be hampered, as they overcome a
prolonged period of low productivity. Cost containment could emerge as a key factor in expansion plans of occupiers.
April 05, 2020