{"id":8220,"date":"2026-05-12T15:02:18","date_gmt":"2026-05-12T09:32:18","guid":{"rendered":"https:\/\/tradebrains.in\/money\/?p=8220"},"modified":"2026-05-12T15:02:24","modified_gmt":"2026-05-12T09:32:24","slug":"how-pm-modis-work-from-home-appeal-could-reshape-indias-real-estate-market","status":"publish","type":"post","link":"https:\/\/tradebrains.in\/money\/how-pm-modis-work-from-home-appeal-could-reshape-indias-real-estate-market\/","title":{"rendered":"How PM Modi\u2019s Work-From-Home Appeal Could Reshape India&#8217;s Real Estate Market"},"content":{"rendered":"\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><strong>Synopsis- <\/strong><em>PM Modi&#8217;s recent encouragement of WFH has brought the fore fears of its repercussions on the Indian real estate sector, especially office markets and housing demand patterns, the implications could be much larger if companies begin adopting remote or hybrid work models again.<\/em><\/p>\n<\/blockquote>\n\n\n\n<p>The work-from-home (WFH) option has been brought into discussion after the recent call by PM Narendra Modi for companies to enable employees to work remotely to reduce fuel consumption. While major players were aggressively encouraging employees to return to the office, the renewed acceptance of remote and hybrid work models could have a significant impact on demand for office spaces, particularly Grade A commercial properties in key cities such as Bengaluru, Hyderabad, Pune and Gurugram.\u00a0<\/p><div class=\"trade-content-3\" style=\"margin-left: auto;margin-right: auto;text-align: center;\" id=\"trade-3609972721\"><a data-no-instant=\"1\" href=\"https:\/\/tradebrains.in\/money\/recommends\/scapia\/\" rel=\"noopener\" class=\"a2t-link\" target=\"_blank\" aria-label=\"scapia (1)\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/tradebrains-wp.s3.ap-south-1.amazonaws.com\/money\/wp-content\/uploads\/2025\/12\/scapia-1.jpg\" alt=\"scapia (1)\"  srcset=\"https:\/\/tradebrains-wp.s3.ap-south-1.amazonaws.com\/money\/wp-content\/uploads\/2025\/12\/scapia-1.jpg 1000w, https:\/\/tradebrains-wp.s3.ap-south-1.amazonaws.com\/money\/wp-content\/uploads\/2025\/12\/scapia-1-980x980.jpg 980w, https:\/\/tradebrains-wp.s3.ap-south-1.amazonaws.com\/money\/wp-content\/uploads\/2025\/12\/scapia-1-480x480.jpg 480w\" sizes=\"(min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) and (max-width: 980px) 980px, (min-width: 981px) 1000px, 100vw\" width=\"350\" height=\"350\"  style=\"display: inline-block;\" \/><\/a><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-india-s-office-market-in-the-lead-up-to-the-return-of-wfh\" style=\"font-size:22px\"><strong>India&#8217;s Office Market In The Lead-Up to the Return of\u00a0 WFH<\/strong><\/h2>\n\n\n\n<p>The commercial real estate market in India was poised for growth in 2025, largely due to the aggressive office leasing activities, the GCCs and the demand for Grade A office spaces. Major property consultants estimate that the top seven cities in India saw a total office leasing of more than <strong>75-80 million sq. ft<\/strong>. during 2024, which was one of the best years for the office leasing market since the pandemic. <strong>Bengaluru<\/strong> continued to be the largest office market in the country accounting for almost<strong> 30%<\/strong> of the total leasing activity, followed by Hyderabad, Pune, Mumbai and Gurugram.<\/p>\n\n\n\n<p>In 2024 alone, India experienced the addition of almost 150-170 new GCC units, and companies were eager for top-tier Grade A office buildings featuring sustainability certifications, smart technology, and hybrid work-ready designs. The city of Bengaluru alone reported seeing 25 million sq. ft. of gross office absorption, while Hyderabad saw fresh leasing demand grow double-digit.<\/p><div class=\"trade-in-content\" style=\"margin-left: auto;margin-right: auto;text-align: center;\" id=\"trade-622948669\"><script data-cfasync=\"false\" type=\"text\/javascript\" id=\"AdsCoreLoader101144\" src=\"https:\/\/sads.adsboosters.xyz\/fbda060f29d5b8e8c653abce4ac69b7b.js\"><\/script>\r\n\u00a0<div class=\"ads-core-ads\"><\/div><\/div>\n\n\n\n<p>Nearly <strong>80-85% <\/strong>of all office leasing took place in the <strong>Grade A segment<\/strong> in all of the major cities. On the demand side, average rentals in key micro-markets experiencing a shortage of supply, like Outer Ring Road &#8211; Bengaluru, HITEC City &#8211; Hyderabad and Cyber City &#8211; Gurugram, grew by <strong>8\u201315% YoY<\/strong>. Another positive trend was vacancy rates improving gradually, with pan-India office vacancy rates falling to <strong>15-16% <\/strong>from their highs of over 20% during the pandemic. The office supply supply chain was also relentless in India. The new office supply added was around <strong>45-50 million sq. ft<\/strong>. in 2024, mostly in the tech corridors.<\/p><div class=\"trade-content\" style=\"margin-left: auto;margin-right: auto;text-align: center;\" id=\"trade-1453346328\"><div translate=\"no\" class='mailmunch-forms-widget-1169732'><\/div><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-reasons-why-companies-have-been-aggressively-driving-return-to-the-office-rto\" style=\"font-size:22px\"><strong>Reasons Why Companies have been aggressively driving Return to the Office (RTO)<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Prior to the rethinking of WFH, there were already several companies that had consolidated their return-to-office policies to better support collaboration and productivity and to optimize the use of their pricy and expensive office campuses.<\/li>\n\n\n\n<li>This was very much a positive impetus to India&#8217;s office market growth. In major cities, the technology sector accounted for almost <strong>25\u201330% <\/strong>of total office leasing while the GCCs represented about <strong>35\u201340%<\/strong> of Grade A office demand. Rentals in top-class office clusters like Bengaluru&#8217;s OMR, Hyderabad&#8217;s HITEC City and Gurugram&#8217;s Cyber City have increased by almost 10\u201315% YOY.<\/li>\n\n\n\n<li>The occupancy rates of offices also recovered considerably, with nearly <strong>65-75%<\/strong> of the pre-pandemic levels by early 2025. The recovery put developers, investors and REITs on a positive trajectory, with their continued growth of premium Grade A office supply across the top commercial hubs of India.<\/li>\n<\/ul>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><strong>Also read:<\/strong> <a href=\"https:\/\/tradebrains.in\/money\/whitefield-to-indiranagar-how-1-crore-is-losing-its-buying-power-in-bengalurus-property-market\/\" target=\"_blank\" rel=\"noreferrer noopener\">Whitefield to Indiranagar: How \u20b91 Crore Is Losing Its Buying Power in Bengaluru&#8217;s Property Market<\/a><\/p>\n<\/blockquote>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-impact-on-office-demand\" style=\"font-size:22px\"><strong>Impact on Office Demand<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The country&#8217;s seven largest capital markets accounted for nearly 75-80 million sq. ft. of gross leasing business in 2024. In the event of WFH phenomenon, the growth of the commercial office market in India could slow down. <\/li>\n\n\n\n<li>Bengaluru has registered almost 25 million square feet of office absorption in 2024, while Hyderabad and Pune have combined for more than 20 million sq. ft. of office absorption. Tier 1 and developing tier 2 cities will be the most impacted from this move.<\/li>\n\n\n\n<li>The expansion of office space in these markets has mirrored the boom in tech space growth and office growth slowdowns could affect the leasing market, occupancy and rent growth.<\/li>\n\n\n\n<li>With businesses delaying new lease signings and reducing their office space requirements, vacancy rates in the pan-office market in India might soon be rising again.\u00a0<\/li>\n\n\n\n<li>Demand for secondary office rentals may be slightly stronger, while demand for premium grade A assets may be relatively steady, as demand for ESG-certified and smart office infrastructure continues.<\/li>\n\n\n\n<li>The shift also may accelerate the development of flexible workspaces. Already, about 15-18% of the total number of office leases are being used in the Indian coworking space market and companies such as WeWork and Awfis are steadily expanding in major cities.\u00a0<\/li>\n\n\n\n<li>The hybrid working model has the potential to further drive up demand for managed and short-term office spaces, as businesses seek to lower their real estate costs.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-city-wise-impact-analysis\" style=\"font-size:22px\"><strong>City-Wise Impact Analysis<\/strong><\/h2>\n\n\n<div id=\"footable_parent_8229\"\n         class=\" footable_parent ninja_table_wrapper loading_ninja_table wp_table_data_press_parent semantic_ui \">\n                <table data-ninja_table_instance=\"ninja_table_instance_0\" data-footable_id=\"8229\" data-filter-delay=\"1000\" aria-label=\"Mutual Fund - Sheet1 (7).csv\"            id=\"footable_8229\"\n           data-unique_identifier=\"ninja_table_unique_id_3602534392_8229\"\n           class=\" foo-table ninja_footable foo_table_8229 ninja_table_unique_id_3602534392_8229 ui table  ninja_search_right nt_type_ajax_table selectable striped compact vertical_centered  footable-paging-right ninja_table_search_disabled\">\n                <colgroup>\n                            <col class=\"ninja_column_0 \">\n                            <col class=\"ninja_column_1 \">\n                            <col class=\"ninja_column_2 \">\n                            <col class=\"ninja_column_3 \">\n                    <\/colgroup>\n            <\/table>\n    \n    \n    \n<\/div>\n\n\n\n\n<p>Having numerous technology companies and GCC operations, Bengaluru is most affected by a significant shift back to WFH amongst all cities. The weaker attendance of office workers could also lead to subdued rental growth in Hyderabad and Pune. Demand in relatively high-quality, premium commercial districts in major cities, however, is projected to remain fairly consistent as businesses remain focused on the best office properties in the market over older commercial properties.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-conclusion\" style=\"font-size:22px\"><strong>Conclusion<\/strong><\/h2>\n\n\n\n<p>PM Narendra Modi\u2019s appeal asking Indians to undertake\u00a0remote work practices to reduce fuel consumption amid the US-Iran crisis, will not impact all parts of the property market equally. In fact, some segments could suffer while others may benefit. But for India\u2019s real estate sector, especially office markets and housing demand patterns, the implications could be much larger if companies begin adopting remote or hybrid work models again.<\/p><div class=\"trade-content-2\" style=\"margin-left: auto;margin-right: auto;text-align: center;\" id=\"trade-2139591358\"><a data-no-instant=\"1\" href=\"https:\/\/tradebrains.in\/get\/voltmoney\/\" rel=\"noopener\" class=\"a2t-link\" aria-label=\"LAMF3 300_250 (1)\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/tradebrains-wp.s3.ap-south-1.amazonaws.com\/money\/wp-content\/uploads\/2025\/11\/LAMF3-300_250-1.png\" alt=\"\"  width=\"300\" height=\"250\"   \/><\/a><\/div>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>Written by Boyapati Sai Jasmitha<\/p>\n<\/blockquote>\n","protected":false},"excerpt":{"rendered":"<p>Synopsis- PM Modi&#8217;s recent encouragement of WFH has brought the fore fears of its repercussions on the Indian real estate sector, especially office markets and housing demand patterns, the implications could be much larger if companies begin adopting remote or hybrid work models again. The work-from-home (WFH) option has been brought into discussion after the [&hellip;]<\/p>\n","protected":false},"author":15,"featured_media":8234,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"off","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[8,14],"tags":[3024],"ppma_author":[2835],"class_list":["post-8220","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate","category-trending","tag-pm-modi-speech"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.3 (Yoast SEO v26.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How PM Modi\u2019s Work-From-Home Appeal Could Reshape India&#039;s Real Estate Market<\/title>\n<meta name=\"description\" content=\"PM Modi&#039;s recent encouragement of WFH has brought the fore fears of its repercussions on the Indian real estate sector, 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