by FranchEffect of Work From Home on Real Estate
The coronavirus pandemic had almost crippled the real estate sector. It has however paved the way for many new trends, including work-from-home (WFH) that has brought in a mixed bag of fortune for the real estate sector. The lockdown saw offices shutting down and people forced to work from home. Even though some offices reopened, social distancing norms and other health and safety protocols ensured restricted staff strength in offices. This trend facilitated ease of working from the safety of employees homes during the pandemic.
WFH here to stay
WFH is going to stay as the preferred mode of work in 2022.According to several IT leaders, the future of workspace will be hybrid, with flexibility to work from home and office. Companies are increasingly making use of technology to promote the hybrid model. They are identifying key technologies to support and elevate health and wellness of their employees. At the same time they are also investing in creating a virtual, secure and cloud based IT environment that facilitates remote working. Cloud strategy is also being worked out to lessen the shocks of abrupt switch over from office to WFH.
So, what will be the impact of emerging hybrid work models on real estate?
It’s a game of pure supply and demand. If a new business center is developed, there is bound to be new housing property development to cater to the crowd that would potentially work in that area. If a commercial project development is taken up near a residential neighborhood, property prices of the houses there will see an automatic raise. We predict that despite the pandemic, residential real estate sector will perform well with a good pick in the days to come. The housing demand in the medium to long-term will increase. The fears of continuous slide of commercial office real estate are misplaced. Going forward, WFH will not replace work from office. As the COVID-19 crisis blows over, work from office will increase, positively impacting workspace demand.
All in all, WFH will prove to be a mixed bag for both residential and commercial office real estate
