Will Returning To The Office Influence City Living Demand?
Many companies adopt a hybrid model for staff coming into the office and working from home. So whether you’re working from home every other day, back at the office full time or choosing your own schedule, there is no doubt a glimmer of normality glistens on the horizon
We’ve seen a significant trend during these past two years to escape the rat race and settle in smaller, less demanding towns. It fits the COVID scenario with almost everyone being forced to work remotely, and it undeniably impacted certain regions.
Most thought the work from home approach might last longer, but we see many in the private sector expecting their staff back at the office. This has prompted many to wonder about the impact it would have on real estate.
There are two main elements to this that we should consider.
• The first one is many families who made the change and relocated to small towns on the coast or platteland made so with the understanding that the opportunity to work remotely will remain beyond the pandemic. Arrangements have been made, and companies are more open to the idea that productivity is sustained. Therefore, we do not see a significant sell-off in these regions again. In fact, we think they might just be able to continue with their growth trends, mainly because our new normal might look a little different.
• Secondly, suburban areas surrounding the major metros and apartments in the CBD regions did experience fluctuations in recent times. However, primarily because of rising fuel costs and consumers being under pressure, we must remember that being closer to business districts, schools and hospitals remain a priority. And as explained earlier, with companies pushing for staff to return to the office, demand in these regions will continue to rise. As a result, it will return to levels close to those before COVID.
In the last few years, it has been difficult to narrow down on trends and predict patterns, and that is still the case. As a result, even though we seem to be moving in the right direction, some market areas remain unpredictable. As they always say, it is within these spaces where the opportunity lies.