February 20, 2022

How Is the real estate business thriving through the pandemic?

Companies have already adopted a work-from-home policy due to the strict precautions taken to halt the spread of the epidemic. As businesses adapt to the changing environment, more new trends will develop. Maintaining safety, health, and hygiene inside the workplace premises will play a critical role in workspace design in the post-COVID environment. Despite the present crisis revealing some of the various organisations’ fragility and weaknesses, it’s noteworthy that many are stepping up their game to innovate and actors to retain commercial continuity.

OPTIMISATION OF SPACE

Distancing yourself from others is here to stay. Businesses have no option but to change and prepare for the new normal until then. In contrast to the global financial crash, social and scientific activities may solve the contemporary problem. While numerous big corporations have already implemented agile work models, this tendency will accelerate for practical and safety reasons. This might result in a decrease in total workplace space needs.

Furthermore, office density is projected to drop. Almost all businesses now function at maximum density. To comply with the social distancing rules, workplaces will have to function at 30 to 50 per cent density in short to medium term. For example, occupations that have reduced their space density to 70-80 sqft/person may be obliged to reevaluate the standard and raise the density to 100 sqft/person in the long run.

This might lead to a significant de-cluttering of big work-floor clusters. However, as work from home becomes increasingly accepted in the workplace, it will not take the place of the significance and need for high-quality, contemporary workspaces, which are essential for recruiting and maintaining talent over time.

OFFICE WITHOUT MUSIC DEMAND AND SUPPLY

Several significant corporations’ business operations and growth plans have already been disrupted by the nationwide shutdown. The nationwide shutdown has already disrupted several significant corporations’ business operations and growth plans. While it’s unlikely that work from home would completely replace the requirement for office space, lease volumes will suffer in 2020 due to the protracted lockdown. In short to medium term, a lack of available supply and an overall economic downturn may compel some corporations to reconsider their real estate plans.

STRONG GROWTH IN THE RENTAL INDUSTRY

In the past several years, demand has outpaced supply in most major office markets. Vacancy rates in several of the country’s most essential micro-markets remained extraordinarily low. Furthermore, with new supply expected to be delayed significantly after the shutdown, rents may not see a significant drop. However, depending on the intensity of the shutdown and how long it lasts, office leases in some essential regions might decline by 5-10% from last year.

COMMITMENT TO THE EMPLOYEES’ WELL-BEING

Companies’ ideas of cleanliness and employee well-being will shift, perhaps influencing workplace design and layout in the post-Covid era. Instead of utilising public spaces, corporate buildings might develop captive exercise places on their property, such as gyms or yoga centres. Building sustainable settings that prioritise health and welfare will get renewed attention by building grading systems such as LEED. In addition, the use of contactless design in buildings, such as elevators and doors, is expected to increase.
If you are searching to invest in a new property during the pandemic, Bandar Damai Perdana is a great place to start with.

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