Most Indian corporates expect the ongoing pandemic to influence the direction of theirreal estate strategyover the next 3 years and increase in quantum of their real estate space requirement, showed aKnight Frankglobal survey.
According to this survey of 400 global firms employing 10 million people reveals occupiers are looking at offices to boost employee wellbeing, collaboration, and talent attraction. Around 90% of global firms regard real estate as a strategic device for their business in support of wider transformation.
Around 67% of the Indian respondents opined that Covid19 will influence the medium-term direction of their real estate strategy. Though three-fourth of the Indian respondents cited that real estate cost reduction targets have increased since the onset of the pandemic, 71% of the Indian respondents expect to see an increase in their real estate portfolio in the next three years.
Nearly 65% of global respondents plan to grow or stabilise their office portfolio within three years, with 46% planning to improve the workplace amenities available to staff post-pandemic.
“The sentiment amongst the office occupiers is strong as a majority of them expect their portfolio to increase in the coming years. While the ongoing pandemic has cast a shadow of doubt and uncertainty, the roll-out of vaccine programmes globally has brought hope for the future of the real estate sector. There is a clear rise in demand for sustainable real estate plans as firms have set net-zero emission target dates,” said Shishir Baijal, Chairman & MD, Knight Frank India.
Indian occupiers’ biggest frustrations with their landlords are a lack of flexibility and a lack of innovation in product or service offering, highlighting the need for landlords to invest in operations, property management and tenant services. Amongst Indian occupiers and ‘corporate brand and image’ remained a prime strategic objective that is best supported by a real estate asset.
Encouragingly, 42% of Indian respondents and 60% globally said to have seen an increase or significant increase in communication with their landlord over the course of the pandemic, providing an opportunity for landlords and tenants to develop a more collaborative and partnership-orientated relationship for the long-term.
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