Work from home culture may damage workspace market: Ind-Ra

07 Jun 2021 CW Team

Unfavourable demand created by the work-from-home culture along with the reduction in recent leasing activities as a result of a weaker economy can easily hit 40% off annual demand for the next few years, as per India Ratings and Research (Ind-Ra).

The agency told the media that this negative demand can lead to over 500 basis points increasing the vacancy levels over FY21 to FY23. While the impact on upcoming workplace providers is likely to be particularly sharp as these may struggle to let out their upcoming properties.

Almost 83% of employees surveyed recently by Accenture favoured a hybrid work model with the flexibility to work remotely 25% to 75% of the time.

Ind-Ra stated such a transition to working remotely can severely hamper office real estate demand as it may allow companies to use a hot-desking policy.

If 2.5% of total staff are asked to report to work on alternate days and use the hot-desking policy, it may result in a net 1.25% reduction in office space required in a country.

Ind-Ra said that on a base of 635 million sq ft of office space occupied in the top eight cities of India at FYE20, it will result in a negative demand of 7.9 million sq ft which is 21% of the average annual demand seen during FY19 to FY20.

Moreover, several international companies have announced hybrid work models where the employees will need to report to the office only on a few days of the week.

Ind-Ra said that occupancy at a large real estate investment trust (REIT) focusing on office portfolio has dipped to 86.8% in 4Q FY21 from 92.2% in 1Q FY21.

Further, the agency added that occupancy at another listed REIT has decreased to 81.8% in 4Q FY21 from 87.1% in 2Q FY21.

Image Source

Also read: 7,400 office leases of 90 million sq ft up for renewal in top 6 cities in 2021

Also read: Embassy REIT to invest Rs 2,800 cr in developing office spaces

Real Estate

03 Apr 2026

Loomcraft Enters South India with Kerala Store Launch

Loomcraft has launched its exclusive store in Kerala, marking its entry into South India and a key step in its nationwide expansion strategy. The move targets a region driven by tourism and premium real estate demand, where outdoor spaces play a central role in hospitality and residential experiences.Kerala’s growing base of luxury resorts, boutique hotels, villas and gated communities has created strong demand for specialised outdoor furniture. However, the region has remained underserved, with buyers relying on imports or generic products not suited to humid, coastal and monsoon-heavy cond..

Mild Steel Prices Seen Rising to Rs 61,000 Per Tonne

Mild steel prices in India, currently around Rs 58,000 per tonne, are expected to rise to nearly Rs 61,000 per tonne in April, indicating an increase of about Rs 3,000 per tonne. The anticipated rise reflects structural pressures driven by geopolitical tensions, energy constraints and limited raw material availability.Ongoing global conflict has disrupted energy markets, leading to LNG shortages that are affecting domestic steel production. Small and mid-sized manufacturers, particularly those dependent on gas-based processes, are witnessing production cuts due to constrained energy supply, re..

Vedanta Expands Transgender Workforce to 75 Employees

Vedanta has strengthened its commitment to workplace inclusion by employing 75 transgender individuals across its businesses, including Vedanta Aluminium, Hindustan Zinc, Sesa Goa, FACOR and Cairn Oil & Gas. The initiative reflects sustained hiring efforts since 2022 to build equitable opportunities across operations, corporate and technical roles.Transgender employees are engaged in functions such as operations, finance, logistics, HR, CSR, healthcare and security, with provisions for internal mobility to support career progression. The company has implemented structured policies, includi..