Here’s why COVID-19 disruption may not erode demand for office space — and that’s good news for the likes of Prestige Estate and Mahindra Lifespaces

• Even then, the offices will have to look for more office space to accommodate the remaining employees.
  
• According to Knight Frank, a total of 62% of the corporate real executives (CRE) said they will either retain (38%) or increase their current office space portfolio.
  
• Shares of Mahindra & Mahindra plummeted 54% so far this year. Whereas Prestige Estate Projects was down 16%.
  
  

The demand forecast for corporate office space remains strong for the next six months and that will come as a big boost for companies like Prestige Estate projects and Mahindra and Mahindra Lifespaces.

According to a recent Knight Frank India survey, most of the corporate real executives believe their company productivity was “unharmed’. However, a majority of 72% say they will continue to work from home for the next six months. Even then, the offices will have to look for more office space to accommodate the remaining employees.

A total of 62% of the corporate real executives (CRE) said they will either retain (38%) or increase their current office space portfolio.


Strong demand forecast
Even with the new “social distancing” norms for offices in place, the outlook for Prestige Estate Projects and Mahindra & Mahindra lifespaces looks good. Shares of Mahindra & Mahindra plummeted 54% so far this year.

Whereas Prestige Estate Projects was down 16% after India shut itself down for more than 56 days. Moreover, the overall outlook for real estate remains dull for the whole year.

“Till a viable treatment for COVID-19 is found, office space users will have to maintain or acquire more space to accommodate the existing team. Work from Home will co-exist, but office space will not lose its importance as a strategic tool for corporate culture development and a source of competitive advantage, Shishir Baijal, Chairman and Managing Director, Knight Frank said,

Moreover, a new concept of “Work from near Home” will develop which signals office development not only in the top 8 cities in India but in suburban towns as well. Something a lot of coworking startups are banking on too.

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