Office space yet to pick up traction in NCR

New Delhi: Office space in Delhi NCR is struggling to gain foothold even post Covid-19 pandemic as realty agents say that the segment under commercial real estate sector has not yet picked up in the recent months. With many industries opting for a hybrid work model which constitutes weekly 3-4 days of 'work from home', realty agents say that the demand for leased office space continues to be at an all time low.

Baldev Singh, a Gurgaon-based realty agent, says that queries from small companies have been almost nil in this year. He also said that most office space queries that come to him are from companies which constitute of less than 10 employees.

"The office space has not picked up in Gurgaon in the past 10-11 months. Even the property rate in this segment has fallen. I cannot give you the specifics, but we've had less than 10 queries in the last five months for small office spaces. Big IT companies that own commercial buildings might be reopening but smaller companies have gone completely remote," he said.

Sharing similar experience, Delhi-based commercial realty agent Vikas Dhingra, owner of Fully Serviced Office (FSO), says that the demand for leased office space is down to 30 per cent post the outbreak of Covid-19. However, demand by individuals for co-working space has taken precedence since August 2021.

"Our package for co-working space for an individual starts from Rs 8,000 with all the inclusive facilities. We have other businesses to financially sustain ourselves. We are hoping that in the coming year demand for leased office spaces will increase to an extent, but given the trends, co-working space for individuals is on the rise and here to stay," Dhingra said.

However, not all Delhi and NCR regions are experiencing a downfall in the demand. Noida-based realtor Ram Sharma says that since office space has gained traction in the area with more companies looking to set up office space to accommodate small to mid-sized workforce.

"The demand has been high in both Noda and Greater Noida. We are receiving higher queries for office space in Noida Expressway. As of now, the office space rentals that we are dealing with are around Rs 40 per sq ft to Rs 60 per sq ft," Sharma said.