MONDAY, 24 JAN 2022

 

CONNECT

Facebook Linked In Twitter
IMH LTD

Kasoulides In Brussels To Attend Foreign Affairs Council And General Affairs Council

Christine Lagarde Rejects Calls for ECB to Act Faster on Inflation

IMH LTD

OPINION

Real Estate: How Is Remote Work Affecting Office Space?

Real Estate: How Is Remote Work Affecting Office Space?

The pandemic was a time of unexpected ups and downs, changing the way we live and work. From one day to the next, companies and employees faced great challenges and had to adapt overnight to the new conditions created by Covid-19. In an effort to continue to operate as before, many companies adopted the remote work model, a form of work that although in Europe had begun to gain ground in recent years, in Cyprus was still in its infancy.

 

Indicatively, Eurostat data shows that 5.4% of the European workforce worked from home in 2019, while in Cyprus the corresponding percentage did not exceed 1.3%. A year later, remote working in Europe jumped to 12.3%, an upward trend followed by Cyprus, reaching 4.5%. For the first time, this new work regime was implemented en masse worldwide and in such a short amount of time.

 

In light of the new circumstances, many companies worldwide believe that the remote work model is here to stay, as it offers a number of advantages, most importantly the reduction of fixed costs. It is a fact that the business world is now seeking flexibility and lower rent costs, while it is concerned about finding ways to protect the health of employees when they return to the office. It is considered that safety, health and human interaction concerns will certainly continue to exist for a long time to come. And for some companies, this factor may be another reason to indefinitely extend their remote work regime. The above data reinforce the concerns felt internationally that in the near future there may be a reduction in the demand for business premises and office space.

 

These concerns are also felt by Cypriot entrepreneurs, who are at the beginning of working out plans to reduce their costs, which are expected to be finalised after the effects of the pandemic reach the final investors.

 

It is, however, our assessment that the office market in Cyprus is not expected to be affected by this trend, as the increased interest from foreign companies to relocate to our island is much greater than the shorter demand for office space created by the work-from-home trend. It is likely that the measures taken by other countries to deal with the pandemic and the new situation have rekindled investor interest in Cyprus. In fact, significant developments are expected following the recent lifting of the restrictive measures. The first signs are already evident.

 

But if the recent conditions of the pandemic and the existing environment continue in the long run, working from home could dramatically undermine the character and culture of a business, with remote working becoming more permanent and the demand for office space being significantly affected. Another emerging trend that is expected to affect the office market in the near future is the demand for new types of offices, which will be environmentally sustainable and with larger interiors.

 

It is a fact that we are still far from returning to normalcy and therefore, apart from estimates and speculations, no one really knows how things will turn out in the future. It is certain, however, that when the pandemic is completely over, we will return to a very different world. In the new everyday life, a hybrid work model will probably prevail which will combine remote work with office work, which will inevitably leave its mark on the office market.

 

The only sure and safe way to grow the office market is to turn to sustainability and the development of buildings and office spaces that consume low to zero energy and offer a safe working environment.

 

 

* By Yiannis Misirlis

  Director of Imperio Group, Deputy Chairman of the Cyprus Land and Building Developers Association (LBDA), member of the Board of Directors of    the Cyprus Chamber of Commerce (CCCI) and Industry and Chairman of the Real Estate Committee. 

 

 

MORE ON OPINION

ESG. A Buzz Word Or A Game Changer In Communication?

You've probably noticed the topics of conversation that dominate most conferences, ...

How European Trademarks Work

Agis Charalambous, Head of IP at Michael Kyprianou & Co LLC provides answers to ...

Channelisation Of Liquidity Into Sustainable Investments And Projects

The banking system, unquestionably, also strained by uncertainty created due to the ...

FROM AROUND GOLDNEWS

   

GOLD Magazine: COMPLIANCE & REGTECH

Compliance has become an essential aspect of the activities of all regulated entities, from banks and investment firms to insurance companies, Forex ...
   

Kasoulides In Brussels To Attend Foreign Affairs Council And General Affairs Council

Foreign Minister Ioannis Kasoulides will participate in the EU’s Foreign Affairs Council (FAC) and General Affairs Council (GAC) in Brussels on Monday and ...
   

Renault, Nissan, Mitsubishi To Unveil 2030 EV Plan This Week

Nissan Motor Co and Mitsubishi Motors Corp (7211.T) plan to triple their investment to jointly develop electric vehicles (EVs), two people with knowledge of ...
   

Cyprus Shipping Deputy Ministry Announces A Tender For The Digital Transformation Of The Shipping Deputy Ministry

The Cyprus Shipping Deputy Ministry (SDM) announces the launch of a tender (Tender No. SDM 1/2022) for the Digital Transformation of the Shipping Deputy ...
   

Christine Lagarde Rejects Calls for ECB to Act Faster on Inflation

Christine Lagarde has rejected calls for the European Central Bank to raise interest rates more quickly than planned in response to record inflation, saying it ...
   

Crypto Crash: Bitcoin Losses Nearly Half Its Value And Extends Losses As Market Fails To Rally

Bitcoin continued to plunge on Saturday following Friday’s cryptocurrency market crash, dropping 5.6 per cent to sit below the $35,000 (€30,851) threshold for ...
   

Hong Kong’s Financial Sector Faces Talent Crunch As Expats Head For The Exit

Late last year, Tania Sibree quit her well-paid job as a financial services lawyer in Hong Kong and returned to Australia rather than live a moment longer with ...
   

Apartments Keep Pushing Residence Prices Up

Residential property prices in Cyprus continued to rise in Q3 2021, primarily driven by apartment purchases, according to Residential Property Price Index ...
 

YOUR COMMENTS

HEADLINES

MOST POPULAR

inb_january_issue
Enter_Cy_10/20-4/23

IMH LTD