Mumbai: Real estate professionals have voiced concern that a renewed push for work from home could shrink demand for commercial office space and hit rental-dependent businesses.
The worries follow Prime Minister Narendra Modi’s advice to companies to move to remote work to help manage disruptions in crude oil supply linked to the West Asia conflict. Industry participants say a wider shift could delay planned office expansions.
Commercial office markets had contracted sharply during the COVID-19 period, causing heavy losses for those relying on leasing income. The sector has recovered over the past two years, with strong leasing activity reported in cities such as Bengaluru, Hyderabad, Pune and Gurugram.
In the first quarter of this year alone, 19.5 million sq ft of office space was leased across eight major cities, about 3% higher than the previous year. However, developers and landlords say companies may now prefer smaller offices and shorter commitments instead of long-term leases.
At the same time, the work-from-home trend is seen boosting residential preferences, with buyers seeking larger homes that include extra rooms, balconies and dedicated work areas. Industry voices also noted the current advisory is temporary and may not cause a major long-term impact on office space demand.
