80 Percent Indian Occupiers Prioritize Physical Offices: CBRE
Real estate consulting firm CBRE South Asia Pvt. Ltd in its its ‘India Future of Office Survey 2021’- conducted between September and November this year states that 80 per cent of Indian occupiers prioritize physical offices while expressing a desire to bring employees back into offices. 88 per cent of participants agreed that business conditions in India need to improve. A total of 100 occupiers with more than 100,000 employees in India were approached by the consulting firm. The survey model included firms from key sectors including technology, BFSI, engineering & manufacturing, infrastructure, real estate & logistics, research, consulting & analytics, and pharmaceuticals/healthcare. Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa, CBRE said, “In CBRE’s view, despite increased adoption of hybrid working during the pandemic, a wider adoption in the long-run seems unlikely. Even with the adoption of hybrid work, most companies expect employees to work in the office most of the time. This new shift in working patterns should be considered amidst occupiers’ intent to expand portfolios in India over the next two years. We thus believe the adoption of hybrid working practices would have only a limited downside impact on future office demand in the medium to long term, particularly as space planning is undertaken based on long-term peak occupancy rates.” According to the survey findings, occupants, developers, and investors will adopt new behaviours to accommodate workplace flexibility and safety. In general, senior business leaders want their employees to come back to work and 80 per cent prefer physical offices, but they are also willing to allow greater flexibility and choice. In India, 58 per cent of respondents plan to implement policies allowing hybrid work cultures. After the second wave scenarios in India, occupiers are working to boost return-to-work plans by ensuring the safety and well-being of employees. The survey also reveals that three tech enhancements (admin, facilities management and amenities, as well as space tracking) are necessary to facilitate the return to work process. Ram Chandnani, Managing Director, Advisory & Transactions Services, CBRE India said, “The current pandemic is accelerating changes in performance, expectations and role of the workplace. Successful and targeted strategies can envision a practically implementable ‘Future of Work Concept’, effectively leveraging potential changes in work styles and corresponding opportunities to rebalance the workplace. The majority of the respondents were clear on the importance of the physical office across India, APAC, and larger global markets. While the relevance of physical space is here to stay, the focus of business must be on the evolving purpose of office spaces.” “The nature of the workplace has completely evolved over the past two years. The adoption of hybrid work is likely to require companies to enhance their workplace strategies to deliver seamless and engaging experiences. The successful adoption of hybrid work within a company would require defining where work can be accomplished, what work requires in-person collaboration to accomplish and who benefits most from spending time in the office.”, added Ram Chandnani. The survey concluded that, despite hybrid work during the pandemic, real estate strategies in the future would not favour fully remote or in-office work. Based on the survey's responses, employees expect strategies to support choices, end-user experiences, and actions that facilitate the integration of life and work. Another important CRE area highlighted by the survey is the growing importance of Environmental, Social, and Governance (ESG). CBRE's 2021 Global Investor Intentions Survey Report found that nearly 60 per cent of respondents have already adopted environmental, social, and governance criteria as part of their investment strategies.