BENGALURU: In this Unlock period, staggered work from home and office has become the new normal. With this, many companies are now shifting to smaller work spaces. This transition is now helping in reviving the real estate economy which had come to a standstill in the last six months.
According to real estate experts, there is a rise in the prices by 6-8 per cent depending upon the area, which is a promising sign. They said that while some companies are moving to the Central Business District (CBD), some large firms are deciding to move to city outskirts where rents are less, as a foresight investment plan which will further help in boosting the market.
Manandi Suresh, member of the Federation of Karnataka Chamber of Commerce and Industry, said some companies are moving from 5,000 sq ft to 3,000 sq ft in CBD areas depending upon the availability as the staff size is also reduced to around 200 people. He said that the rush is now no more for new buildings or high-rises, smaller spaces with old style construction are gaining popularity.
Farooq Mahmood, C&D Silver Line Private Limited and President Emeritus, Bangalore Realtors Association of India, said the real estate sector is seeing an increase in prices after three years. Depending upon the type and area, the rise is anything between 7 and 15 per cent, he said.
Kishore Jain, president, Confederation of Real Estate Developers Associations of India (CREDAI), said the real estate cost has also increased as the input cost has increased, especially that of steel and cement. The average output cost has also increased as there are no more stocks available in the market. There are no more new constructions to offer and the new properties will take time to come up, he said.
In a CBD area, the rate per sqft of Rs 10,000-25,000 has now gone up by 8 per cent, while the rate in Whitefield or Yelahanka of Rs 6,000- 8,000 per sqft has increased now by 6-7 per cent. Realtors say that investors are looking for deals for a period of three years or so, till there is stability from the pandemic.
Realtors also pointed to another growing trend of rise in demand for conversion or creation of office-like setup in their homes. “Customers are demanding for creation of space where a conference can be held from home,” said Avinash P, a city-based realtor.