The total office space absorption was 58.6 mn sq ft in the year 2019. Due to the Covid -19 outbreak, India’s office sector is likely to see a lower gross absorption in 2020.
There have been quite a lot of changes in projects, business strategies and expansion being revised or halted, which has impacted space take up immensely. The office space absorption has dropped to 30% in India
There has been considerable cut in the corporate requirement for office space by 20%. Most of the companies have adopted work from home policy which has an adverse effect on office demands. But due to the need of maintaining a social distancing factor at work place, this could to some extend compensate the possible dip in demand.
Post pandemic the demand for office space is uncertain. Work from home is a temporary contingency strategy for organizations.
Firstly, either due to layoffs or to an increase in work from home, we can predict fewer employees coming to office and could mean less need for office space, there are higher chances for the sizeable decrease in demand for the office space.
Secondly, safety protocol that needs people to be spaced at least six feet apart can lead to demand for office space.
Companies looking to downsize from traditional office space would prefer flexible office space like co work than long term lease. Companies probably might lease the entire section or floor or building for a space that is more safe and controlled during the recovery.
