Lockdown impact: Demand up for bigger houses, smaller offices

Lockdown due to COVID 19 has resulted in increased negotiations between office space developers and occupiers, said Salil Kumar, Director, Assotech Realty.

“I have interacted with tenants and found that they are searching for a low rental market’, said Kumar.

Khair Ull Nissa Shah, ED, WTC said people are definitely coming for restructuring where the cost of the rentals is high but it is not so if the rentals are low. “Noida is not seeing much of restructuring, but Gurgaon in certain places is seeing restructuring. Most of the retail, at least 90 per cent is coming for restructuring”, said Khair.

The realty stalwarts were speaking at Realty Webseries, a Realty & More and ICCPL initiative.

Speaking at the Webinar, Supriya Chatterjee, Senior Director – Leasing Services, Cushman & Wakefield said, post lockdown lot of customers are demanding rent abatements and for the new transactions occupiers are asking  for deferment of rent commencement as well.

Elaborating more, Ajay Rakheja, National Head – Commercial Real Estate – 360 Realtors, said renegotiations have already happened or new leases are in place or there is an additional addendum agreements have already been made and ready to execute. “Just doing a wait and watch and this is going to be debatable for one or two months till action comes into place how the real picture looks like”, added Rakheja.

Commenting on both commercial as well as residential, Abhi Batra, Director, Buniyad Group said working people with smaller homes are looking to upgrade their houses to work smoothly from home. “In terms of office spaces, we have requirement of people who want to either downsize or wanted to go for from one to other properties for saving on the rentals”, said Batra.

Another speaker at the event Amrendra Shukla, National Head, Sales, OLX India said presently there are two types of buyers in the market. One category is of pure investors who are trying to squeeze developers to get a dirt cheap discounted price who can hold the inventory for 3-4 years, looking for appreciation and book profits then. “The second scenario is where people are struggling for an isolated place to resume work from home. So there are 2 bedroom houses where they are looking at 2 and a half bedrooms, where they can sit and execute their work sitting at home”, said Shukla.

Amit Raheja, CMD, Wealth Clinic said the homebuyers are lapping up the attractive lockdown offers by the developers. “In affordable housing we have very good response and second income properties where rentals will come, people are investing”, said Raheja.

Kapil Kapur, Director, Strategy, Sales & BD, Bullmen Realty, said one reason for increase in housing sales during lockdown is that people have understood the importance of a home during the lockdown. “Moreover from a financial perspective housing loan interest rates have drastically come down, people can save more on EMIs”, said Kapoor.