Pune: Small entrepreneurs opt out of renting office spaces

Sanjay Shinde has decided to focus more on online business instead of renewing the contract of his rented office space in the Shivajinagar area. The entrepreneur working in the field of IT-related services attributed his decision to the drop in business caused by the lockdown restrictions.

Young entrepreneur Rahul Vispute, who runs a pest control and related service, now meets his clients online for discussions with travel restrictions triggering a drop in footfall at his office. “There is no point in paying the rent when the clients are not visiting the office. During the two months of the lockdown, the office was almost shut. The owner wll not waive the rent,” he said.

Real estate industry sources said the agreements for rental spaces have recorded a considerable drop since the outbreak of the pandemic and the ensuing pandemic Real estate broker Vishal Shah said there has been a nearly 50% drop in rent agreements. Sattar Sayyad of Ashiyana real estate said, “Those who had around 4,000 sqft rented properties for their offices are now ready to settle for a 1,000 sqft facility.”

Dipak Nikam who has a firm for brand building and promotions, said he has not renewed the rental contract of his office operating from the outhouse of a bungalow. “My partner and I decided to terminate the contract and work from home till the situation becomes normal,” he said.

Inspector General of Registration (IGR) officials confirmed that there has been a drop in the overall document registrations. The registration offices in the city were closed during the 10-day total lockdown from July 14.

Source: https://realty.economictimes.indiatimes.com/news/commercial/pune-small-entrepreneurs-opt-out-of-renting-office-spaces/77256941