Remote Work Causes Drops in Office Rental Prices
The global pandemic of coronavirus changed the world and resulted in many transformations across different sectors, and the real estate sector was not an exception. As rental prices for factories rose due to the growing demand in the manufacturing sector, office rental prices did not follow suit as remote work caused a drop.
The annual rental price growth for plazas in Istanbul was recorded at 27%. However, a decreasing trend is expected for the next 6 months while Ankara saw a decrease of 17% in office rental prices.
According to The Union of Chambers and Commodity Exchanges of Turkey (TOBB) data, the number of companies established in 2020 reached 102,794, rising 20,65% compared to 2019.
The first quarter of 2021 saw a rise of 20,15% compared to the same period of 2020, and 41,170 new companies were established. During this period, most companies opted for virtual offices, which could transform the commercial real estate sector.
During 2020, significant changes have been experienced in the office market, as in many asset classes. In line with the outcomes of this period, companies are reshaping their workplace strategy with the increase in remote working penetration. In this context, the quality, building specification and location have become more critical than ever.
A recent survey found that the future of the workplace will benefit by providing office workers with the flexibility to work in multiple locations during a typical week. However, %100 remote work does not seem ideal for most employees.
Many employers are expected to continue remote work plan even after completing vaccination and going back to normal. Hybrid schedules that balance working at the office and remote work help employers reduce fixed costs like electricity, internet and telephone connection, thus increase the interest in remote work. While some employees are in favour of remote working or hybrid schedules, some complain about lack of efficiency. This group of employees claim that the monotony of working from home and doing chores at the same time result in inefficiency, while those in favour of remote working declare that saving time by eliminating commutes is a huge plus.