Office space demand can translate into high returns, say experts

Oversupply and poor maintenance can, however, affect investments

Companies are insisting that employees return to the office. Businesses that gave up space during the pandemic are looking to re-lease it. As a result, the prospects of commercial real estate (CRE), which had nosedived during the pandemic, have brightened.
 

Robust demand
According to data from CBRE, in the past nine months, India’s office sector absorbed 42.1 million square feet (sq. ft.), registering a growth of 66 per cent year-on-year (YoY).

Supply grew slower, at 4 per cent YoY to 35.6 million sq. ft. “Calendar year 2022 could turn out to be one of the best for office leasing in