Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us  
Google
Web www.equitybulls.com
Industry News

| More

Compact office demand increasing in post-COVID scenario

Posted On: 2021-05-23 05:47:18 (Time Zone: UTC)


As the population in Noida's newer areas has grown, commercial and office space has become essential. Following residential acceptance, office spaces are gaining traction; the demand has grown as office spaces in East Delhi are nearly full and do not meet modern demands for ultra-tech and swanky offices. Demand is increasing, not just for larger spaces, but also for compact spaces that meet the needs of smaller businesses. The vicinity of Noida's sector 129 has emerged as the place for the office segment. The places have been able to make a point because of the improved connectivity in the last few years thanks to a lot of infrastructural developments.

Overall, the office real estate market is thriving, with demand for Grade A office space skyrocketing and vacancy rates in prime locations falling. The demand metrics for the office leasing segment of the commercial real estate market had remained stable. "Companies have continued to concentrate on employee well-being as a result of the growing Covid-19 second wave around the country; the increased sense of obligation has meant that offices which were working from cramped spaces in city centers would search for compact offices in plush locations and buildings in NCR," says Deepak Kapoor, Director, Gulshan.

After COVID, many companies decided to distribute a number of employees in one office to many offices, which has helped them expand their reach. Giving more insight, Yukti Nagpal, Director, Gulshan says, "The amount of lease retention in properties that are already operational has largely followed past trends. However, some corporate office occupants are downsizing their space needs, resulting in a demand for compact offices. The demand-supply gap could temporarily expand due to a steady pipeline of assets becoming operational in the near future."

Although some large-scale leasing deals have been announced, the volumes may not be sufficient to cover the rise in completed stock from the larger organized developers. Nonetheless, long-term demand prospects for the sector appear favorable, given that Covid-19 has had no material market effect on the large occupier base in such properties. "Over the medium to long term, a return to earlier levels of demand will rebalance the current demand-supply mismatch.

Talking of Noida, the office developments cannot sustain if not supported by infrastructure projects. Overall, Noida is expected to witness healthy investment in infrastructural projects. Noida is also changing day by day, as it has designated commercial and residential areas, giving residents a sense of planned growth. The aspect of transportation has also been taken care of with Metro connectivity. "In response to demand, developers created commercial hubs with dedicated office spaces as an alternative for people who worked from home or in a shopping center. The minimum area for office space begins at 300 square feet, giving start-ups and entrepreneurs with small budgets a choice," says Mr. Kapoor.

Interior designers, chartered accountants, travel agents, insurance agents, bank DSAs, attorneys, architects, and property brokers are among the industries that profit from these choices. With so many infrastructures planned and so many people moving to these areas, compact commercial office real estate is expected to expand by leaps and bounds. The rentals for office spaces are in the range of Rs 40-75 per sqft depending on the size & location.

"The abundance of options in these areas has aided these individuals in moving their operations from their homes or unlicensed buildings to swank office environments. These office spaces are built to meet the growing demand for high-quality work environments due to the amount of time people spend in offices, as well as to make a good impression on their clients/customers," says Yukti Nagpal.


Source: Equity Bulls

Click here to send ur comments or to feedback@equitybulls.com


Other Headlines:

Pune attracted institutional investments of ~INR 9,600 crore during 2015-20; 77% accounted for offshore investors: JLL

NCML Announces Corporate Name Change to National Commodities Management Services Limited

Bharti AXA Life Insurance appoints Rahul Bhuskute as Chief Investment Officer

SVC Bank clocks record Profit of INR 150.21 Crore in FY 2020-21

64% of outdated Grade A office space in India presents an estimated INR 5,500 crores of untapped investment value: JLL

Indian data center sector to require $3.7 billion of investment by 2023 to meet demand: JLL

Aluminium Industry reiterates urgency for 5% RoDTEP rate for economic sustainability

Cold chain logistics expected to grow by over 20% CAGR by 2025: JLL

Emerging trends in the consumer durables industry in the 'new normal' - Parag Kulkarni, MD, A. O. Smith India

Five Years of RERA have been transformational for the Realty Industry

Fino Payments Bank goes live with enhanced deposit limit of ₹2 lakh

Ageas Federal Life Insurance launches Saral Pension

Manipal Hosptials completes the acquisition of 100% stake in Columbia Asia Hospitals in India

Leading EV manufacturer Komaki Creates New Battery Technology that boasts of a blistering 220+ km range

Government of Odisha approves 9 new industrial projects worth INR 2570.54 Crore at the 100th SLSWCA meet

SIAM hosts 12th Lecture Series on Hybrid and Electric Vehicles in India: Development, Testing & Homologation

Top 5 Startups Fueling Innovative Financial Inclusion Solutions in India

Tech Trends that will Rule the Gaming Industry in 2021

LIC's Branding Rights of Andheri Metro Station, campaign executed by Times OOH

Bharat Biotech to expand COVAXIN® capacity to support vaccination campaigns in India and Worldwide

Lowering age to 18 yrs for vaccination, decisive step to restore confidence, says ASSOCHAM

Home Credit Partners with SEWA Bharat to restore livelihoods of nano entrepreneurs

Ascendas India Trust secures maiden S$100 million sustainability-linked loan from UOB

Noida International Airport begins the pre-qualification process for airport development and construction tender

Fractional ownership providing boost to Commercial Real Estate

Bharti AXA Life Insurance establishes bancassurance partnership with Fincare Small Finance Bank

NCR witness 111% jump in new launches

Pitstop raises USD 3.5 million in pre-series B funding led by Ventureast

CPAI urges Maharashtra govt to classify stock broking under essential services amid new COVID-19 curbs

BYJU'S to acquire Aakash Educational Services Limited through a strategic merger

Shriram Life Insurance introduces settlement of claims within 12 hours

Ascendas India Trust to invest in a forward purchase acquisition of 1.65 million square feet of an IT Park at Hebbal, Bangalore

JICA signs loan agreement for JPY 10 billion with TCCL for Climate Change Management Project in India

Arcil appoints Mr. Pallav Mohapatra as Chief Executive Officer & Managing Director

Home Credit strengthens its Insurance Portfolio

Yamuna International Airport's proposed term loans rated at 'Provisional IND A-'/Stable by India Ratings

MoU Signing for the Integrated Steel Complex by ArcelorMittal Nippon Steel India at Kendrapara held

SVC Bank bags 'Best Co-op Bank in India 2020' Award at World Leadership Awards

To cash in on retail rush, brokerages shower freebies on investors

SIDBI and NSE joins hands for co-operation in various MSME related initiatives

Honda posts robust 31% growth with 4 lac+ domestic sales in Feb'21

Hyundai Motor India registers cumulative sales of 61,800 Units in Feb'21

SIDBI joins hands with Government of Andhra Pradesh for the Development of MSME ecosystem in the State

Bauxite Average Sale Price (ASP) needs correction for Indian Aluminium to be competitive

Fino Payments Bank is now a scheduled bank

UST Acquires ServiceNow Business from abhra, Inc.

First batch of Sputnik V vaccine delivered to Mexico

Fino Payments Bank to on board 10000 women from SHGs as banking agents in Uttar Pradesh

Liberty General Insurance Rolls Out AI-based Automated Car Inspections

Ageas Federal Life Insurance launches its Life Advantage Plus Plan


Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2020