PM Modi’s ‘Work From Home’ Call to Save Fuel Sparks Debate in the Real Estate Sector
Amidst escalating tensions in West Asia and soaring global fuel prices, Prime Minister Narendra Modi has urged citizens to reconsider adopting the 'Work From Home' (WFH) model wherever feasible. Intended as a strategic move to conserve fuel, this appeal has triggered fresh discussions within the Indian real estate sector, particularly regarding its potential impact on office leasing and residential property demand.
Speaking at an event in Hyderabad on Sunday, the Prime Minister advised employees to work from home when possible to mitigate the economic strain of rising energy costs. Additionally, he urged citizens to pause gold purchases for a year, avoid unnecessary foreign travel, and prioritise domestic products. With India importing approximately 85% of its crude oil requirements, the government anticipates these measures will significantly ease the pressure on the nation’s foreign exchange reserves.
However, the Prime Minister’s WFH suggestion is expected to have a direct ripple effect on the real estate market. Office leasing across India's top seven cities witnessed a massive resurgence during the recent times. Industry analysts now suggest that if corporate entities pivot back to remote or hybrid work models, the momentum of new office space leasing could slow down. Expansion plans in major tech corridors, including yderabad’s HITEC City, Bengaluru’s Outer Ring Road, and Gurugram’s Cyber City, may face delays.
Conversely, the residential real estate segment is poised to benefit from this shift. According to a Business Standard report, Santhosh Kumar, Vice Chairman of the Anarock Group, noted that even if the Prime Minister's appeal yields a temporary shift, it will further amplify the demand for larger homes with dedicated workspaces—a trend that initially gained traction during the Covid-19 pandemic.
Echoing this sentiment, Ashish Jerath, President of Smartworld Developers, stated that their upcoming projects are already being designed to include dedicated work-from-home areas. Furthermore, Keerthi Chilukuri, Founder of the Stonecraft Group, explained that in tech-driven cities like Hyderabad, the demand for integrated communities offering superior connectivity and lifestyle amenities will only strengthen.
Despite these projections, some experts caution against expecting an immediate market disruption. Pankaj Kapoor, Managing Director at Liases Foras, stated that unless the government issues official, mandatory directives, the real estate sector is unlikely to experience drastic immediate impacts.
Currently, a majority of companies plan to maintain their existing hybrid work policies. Meanwhile, market observers predict that reducing expenditures on commodities like gold could prompt citizens to divert their savings into real estate, viewing it as a more stable long-term asset. Ultimately, the lasting impact on the property market will depend heavily on how the corporate sector responds to the Prime Minister's appeal and the duration of the ongoing global energy crisis.
Speaking at an event in Hyderabad on Sunday, the Prime Minister advised employees to work from home when possible to mitigate the economic strain of rising energy costs. Additionally, he urged citizens to pause gold purchases for a year, avoid unnecessary foreign travel, and prioritise domestic products. With India importing approximately 85% of its crude oil requirements, the government anticipates these measures will significantly ease the pressure on the nation’s foreign exchange reserves.
However, the Prime Minister’s WFH suggestion is expected to have a direct ripple effect on the real estate market. Office leasing across India's top seven cities witnessed a massive resurgence during the recent times. Industry analysts now suggest that if corporate entities pivot back to remote or hybrid work models, the momentum of new office space leasing could slow down. Expansion plans in major tech corridors, including yderabad’s HITEC City, Bengaluru’s Outer Ring Road, and Gurugram’s Cyber City, may face delays.
Conversely, the residential real estate segment is poised to benefit from this shift. According to a Business Standard report, Santhosh Kumar, Vice Chairman of the Anarock Group, noted that even if the Prime Minister's appeal yields a temporary shift, it will further amplify the demand for larger homes with dedicated workspaces—a trend that initially gained traction during the Covid-19 pandemic.
Echoing this sentiment, Ashish Jerath, President of Smartworld Developers, stated that their upcoming projects are already being designed to include dedicated work-from-home areas. Furthermore, Keerthi Chilukuri, Founder of the Stonecraft Group, explained that in tech-driven cities like Hyderabad, the demand for integrated communities offering superior connectivity and lifestyle amenities will only strengthen.
Despite these projections, some experts caution against expecting an immediate market disruption. Pankaj Kapoor, Managing Director at Liases Foras, stated that unless the government issues official, mandatory directives, the real estate sector is unlikely to experience drastic immediate impacts.
Currently, a majority of companies plan to maintain their existing hybrid work policies. Meanwhile, market observers predict that reducing expenditures on commodities like gold could prompt citizens to divert their savings into real estate, viewing it as a more stable long-term asset. Ultimately, the lasting impact on the property market will depend heavily on how the corporate sector responds to the Prime Minister's appeal and the duration of the ongoing global energy crisis.
