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Pune: Demand for office rental space sees spike, software industry leads the trend

With major IT companies leading in getting their employees back to the workplace, office space rentals in Pune have seen a huge jump as compared to last year.

By: Express News Service | Pune |
October 21, 2021 10:15:00 pm
IT companies have led the march in rentals while manufacturing, banking and financial services (BFSI) followed suit. (Representational)

Improved vaccination rate and general flattening of the Covid-19 curve has seen offices gearing up to resume a near-normal pace of work. With major IT companies leading in getting their employees back to the workplace, office space rentals in Pune have seen a huge jump as compared to last year.

During the third quarter of present calendar year, Pune had seen rental of 1 million square feet. This, a report by property consultant Knight Frank said, was 549 per cent increase on a year-on-year basis, given that last year was a wash out due to the pandemic and related restrictions. This year’s transaction is 63 per cent of what was carried out during the third quarter of 2019.

The start of the pandemic in India in March 2020 saw offices closing and work from home gaining traction. Thanks to remote working, many companies did not even renew their leases of office property. Some of the MNCs (multi-national companies) had even talked about making remote working “the new normal”, which was expected to save companies substantial cost in terms of investment in infrastructure.

However, arrival of vaccines saw this trend being checked and companies talking about return to physical workspaces. A hybrid working space, many felt, would become the norm with companies calling their work force in a staggered manner in order to avoid crowding.

Pune’s corporate world, too, reflected the nationwide trend with large MNCs asking their employees to come back to work. Special vaccination drive by corporates saw substantial portions of the workforce being double or fully vaccinated.

IT companies have led the march in rentals while manufacturing, banking and financial services (BFSI) followed suit. Nationally, manufacturing companies have provided more traction this year as compared to last year. A slight decrease was noticed in the co-working space.

Vishal Gokhale, chairman and managing director (CMD) – Gokhale Constructions, said this year his company has offered office spaces at discounted rates during the festive season. “This year, along with homes on good locations we also offered office spaces at discounted rates at Gokhale Business Bay, an ultramodern commercial complex being developed at Kothrud. So, this year we received equally good responses for the residential as well as the commercial spaces,” he said.

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