Is Office Space Still A Worthy Real Estate Investment In The Work From Home World?

As Covid-related uncertainty is fading and the hybrid work paradigm becomes the norm, office space leasing is expected to increase.

Share on facebook
Share on twitter
Share on linkedin
Office space investment

With the third wave of the pandemic fading, commercial real estate’s near-term prospects are expected to improve. This segment’s long-term prospects are determined by the rate of economic growth. Commercial real estate in India has strong long-term potential, as it is one of the world’s fastest-growing economies.

Only 1.8 billion individuals have high-speed internet access in 2010. It has grown to 3 billion by 2016. Experts predict that by 2022, the whole world’s population of 8 billion people will have access to high-speed internet. All of these connections paved the way for organizations to embrace remote labor. Before the coronavirus, 4.7 million individuals were working remotely, according to a renowned real estate portal.

Overhead expenses were cheaper, and research revealed that working from home enhanced productivity in many circumstances. Plus, we were able to hire people from all over the world at comparable pay, which is critical in places like the Bay Area and Silicon Valley. The coronavirus epidemic hit, and 88 percent of the world’s corporations supported or required remote labor, according to the studies.

If you believe we’ll all go back to work after the epidemic is over, think again! The statistics and patterns tell a different picture! Fortunately, these improvements will improve the way real estate is done and provide investment options.

Also Read: 12 Ways A Smart Owner Can Identify The Right Real Estate Investment Opportunities.

Positive attitude

Work From Home (WFH) has harmed the prospects of commercial real estate, as businesses have been letting go of leased locations to save money on rent. Corporates are bringing their staff back to work, removing the uncertainty that has surrounded the office as an asset class since Covid’s inception.

In the future, India’s standing in the global economy is anticipated to improve. India’s worldwide market worth has constantly risen. It has evolved from an outsourcing destination to a multinational company’s research and development center. It’s also an important consumer market for goods and services.

According to a renowned real estate website, net absorption in the Indian office sector reached 11.56 million sq. ft in October-December 2021, the most in the recent eight quarters and up to 86% quarter-on-quarter. For the half-yearly period of July to December 2021, net absorption increased by 26% year on year.

Also, Read Smart Real Estate Investments: What Are Grade A, B, C In Commercial Properties.

Time to enter

Commercial real estate experts say now is a terrific time to invest. WFH has generated doubts in the minds of investors. Companies, on the other hand, are now considering a hybrid work environment in which the office plays an important role. Investor confidence has risen as a result of this.

The market appears to be improving, with lease activity picking up in the top seven cities in 2021. Many offices already have opened, and many more are expected to start soon. As a result, this is an excellent moment to invest in commercial real estate.


A good location may bring a 7.5-10% yearly rental return on office space. There is also the possibility of capital growth. This asset class’s returns are likewise quite consistent.

Locations to bet on

Investors can visit any of the country’s bustling corporate and business districts. Bengaluru continues to witness significant demand from start-ups as well as the IT/ITeS industry. The city’s most popular areas include the Outer Ring Road, Electronic City, and Whitefield. HITECH city and Gachibowli are two of the most popular areas in Hyderabad. It’s MG Road, Sohna Road, and the DLF IT parks in Gurugram. It’s largely OMR in Chennai. The BKC region and Worli are popular tourist sites in the Mumbai Metropolitan Region (MMR).

Apart from Mumbai and Pune in the west, Bengaluru and Hyderabad in the south, and the National Capital Region (NCR) in the north, Kolkata, and Chennai are gaining traction among investors looking for chances. He goes on to say that micro markets in areas with substantial infrastructural development have promising futures.

Also, Read 9 Things you should consider while investing in Commercial real estate.

Important considerations

Investors must carefully pick the property to generate excellent profits. The major concerns should be location, occupier profile, and entry and exit pricing. The property should be in a high-demand area with a consistent tenant profile.

Due diligence is essential. Make sure the property title is clear and that the paperwork procedure goes well. RERA registration is required if the project is still under development. Exiting from a commercial real estate venture can be difficult at times. REITs are thus a viable choice for commercial real estate investment. In India, all REITs are owned by firms with substantial portfolios.

Coronavirus and remote working comes hand in hand in altering people’s business and personal life. Coronavirus didn’t make us want to work from home; it only made it easier for us to do so. From all the work we had previously achieved, we were only able to adjust so swiftly. While the entire impact of that rapid transition has yet to be seen and understood, we now know that remote working is here to stay long after the epidemic has passed. Assetmonk offers individuals who want to invest in commercial real estate without having to manage a physical property the opportunity to buy institutional-grade commercial real estate through a thorough research-based process. Assetmonk helps customers with their investing difficulties and offers a variety of CRE investment options.

FAQ'S on Office Space Investments

Businesses who previously opposed working from home owing to concerns about data security or increased hardware and network expenses may soon discover that they have no choice. Businesses will struggle to justify high real-estate expenses as success stories about increased employee productivity and quality spread throughout enterprises, and some will point to a BAU (business-as-usual) experience.

In the case of residential real estate, WFH had a short-term detrimental influence. WFH, among other things, contributed to the drop in house sales.

Related Articles

istockphoto 636187984 612x612 1

National Savings Certificate Interest Rate 2023

National Savings Certificate (NSC) is a government-backed savings product available in India. NSC interest rates are determined by the government, and they offer a fixed rate of return over the life of the investment. The current interest rate for NSC is 6.8% per year. NSC interest rates are subject to change, but they have remained relatively stable over the past few years. In 2023, the interest rate is scheduled to increase to 6.8% per year. This will be the first interest rate increase since 2016, when the interest rate was increased from 7.6% to 7.9%. NSCs are a popular savings option for Indian citizens, as they offer a guaranteed rate of return and are backed by the government. If you are looking for a safe and secure investment option, NSCs may be a good option for you. Also, read NSC – National Savings Certificate. How the interest rates on National Savings Certificates have changed over time? If you’re looking for…

Read more
istockphoto 1136161903 612x612 1

Post Office Tax Saving Scheme

The post office tax savings schemes are a government-sponsored investment plan in India. Under the schemes, investors can save taxes by investing in specific post office savings instruments. The schemes are currently available in all post offices across the country. The schemes offer several benefits to investors, including tax exemption on the invested amount, interest income, and capital gains. Investors can choose from a variety of post office saving instruments, including fixed deposits, National Savings Certificates, and Public Provident Funds. The post office tax saving scheme is a great way to save taxes and grow your money. If you are looking for a safe and secure investment option, this scheme is worth considering. Also read Post Office Time Deposit. What are the Post Office Tax Saving Schemes in India? The post office tax saving schemes are a long-term investment plan offered by the Indian government. Under it, you can invest in various post office saving schemes and get income tax…

Read more
istockphoto 1439112216 612x612 1

EPF Form 5 for First-Time Employee Registration

What is EPF Form 5? EPF Form 5 is for First-Time Employee Registration. Each month, employers fill out EPF Form 5 with information on fresh hires from the previous month. These fresh hires qualify for the services of EPF. Employee Provident Fund Organization applies to all companies in the organized sector industry with 20 and more workers. These companies must offer EPF facilities to qualified employees as well as deposit to their EDLI, EPS, and EPF. Each month, they must notify EPFO of new recruits entitled to EPF offerings by completing Form 5 and sending the form to the EPF Commissioner in their region. EPF Form 5 Details Objective Submitting information on a new EPFO member in a specific month Website Qualifying criteria Employee Provident Fund Organization’s authority should extend to the employers. Is it necessary? Yes. Who is required to fill out EPF Form 5? Employers. Time for filling out EPF Form 5? Each month. Submitting the details…

Read more
National Pension Scheme (NPS) India For NRI Investors | Assetmonk

How to Open NPS Account Online

Wondering how to Open NPS Account Online? But, firstly what is NPS? The National Pension System (NPS) is a social security scheme that may be accessed online. PFRDA  has control over NPS. Its goal is to provide financial rewards via pension after retirement. The federal government created NPS in 2014. NPS is a scheme that is based on contributions that provide retirees with returns that are linked to the market. Also read NPS Vs PPF: Comparison, Return Rates & Which is Better. How to Open NPS Account Online? An NPS account can be opened in 2 ways: Through the BankBazaar portal Through the NPS portal Also, read NPS Customer Cares Support Toll-Free and Contact Numbers. How to Open NPS Account Online: Through the BankBazaar portal Step 1: Go to on the BankBazaar portal. Step 2: Select ‘Investments’. Next, select ‘National Pension Scheme’. Step 3: You’ll be sent to a fresh webpage. Step 4: Click the ‘Create new account’ button.…

Read more
istockphoto 1364622197 612x612 1

LIC Jeevan Anand Vs PPF: What are the Differences?

LIC Jeevan Anand Vs PPF: What are the Differences? As can be seen, there are several sorts of investment routes, each with its own set of features and risk and return levels.  Investments linked to the markets are those invested in the markets. They provide returns that are not guaranteed. Fixed-income investments do not participate in the market and ensure returns that are guaranteed. These are typically preferred by those who are averse to market volatility, and if these avenues provide tax breaks. Section 80C of the 1961 Act provides several potential investment possibilities with tax advantages. The LIC Jeevan Anand and PPF plans are the most prominent options under Sec 80C. These plans have certain commonalities and distinctions that you should be aware of before investing. So, let us investigate LIC Jeevan Anand Vs PPF differences. LIC Jeevan Anand Is? LIC Jeevan Anand is a well-known life insurance product firm that provides a variety of insurance options. LIC Jeevan…

Read more
istockphoto 1372362922 612x612 1

How to Pay PPF online

PPF Online payment modes? Want to know how to do that? Yes, you can pay PPF online. PPF is a tried-and-true investing option for a huge segment of Indian residents. You might be accustomed to making a PPF payment in person, there are various methods for paying PPF contributions online too. The process of how to pay PPF online is not too complicated. Thus, allowing you to easily manage your investments with no problems. The Indian government fully supports the PPF plan, and there are zero dangers related to it. Presently, the PPF interest rate is 8 percent annually. The payments paid for the plan, as well as the interest produced from it, are totally tax deductible by Section 80C of the 1961 Act. Read PPF Interest Rates for FY 2022-23 (October-December). PPF online payment: How to do it? Wondering how to PPF online? Prior to understanding further how to pay your PPF online, you need first understand the different…

Read more