WFH returns? Modi's appeal could change office, housing demand across India

Prime Minister Narendra Modi’s recent call for Indians to return to work-from-home (WFH) practices, aimed at reducing fuel consumption during the West Asia crisis, may disrupt India’s real estate sector. The appeal comes as commercial office markets in cities like Bengaluru, Hyderabad, Pune, and Mumbai have shown strong recovery since 2024, with gross leasing volumes hitting record highs—83.3 million sq. ft in 2025, per JLL data. The office sector had rebounded after pandemic-era disruptions, with large transactions (over 1 lakh sq. ft) reaching 1.95 crore sq. ft across eight cities in Q1 2026, a 3% year-on-year rise, according to Knight Frank. Bengaluru alone accounted for 70 lakh sq. ft, or 77% of its total leasing volume. If WFH adoption resumes, companies may delay expansions, reduce seat capacity, or opt for flexible offices instead of long-term leases, slowing demand for premium office parks and co-working spaces. The government’s push for WFH stems from soaring oil prices, which India imports 85% of its crude oil needs from. Rising fuel costs strain inflation, the rupee, transport expenses, and foreign exchange reserves. Daily commutes by office workers contribute significantly to urban fuel consumption, making WFH a strategic move to cut petrol and diesel usage while easing traffic congestion. Housing demand could also shift as employees prioritize suburban or remote locations over city centers. Developers in business districts like Bengaluru’s IT hubs, Hyderabad’s financial corridors, and Mumbai’s central areas may face slower absorption rates if hybrid or full-time remote work becomes widespread. While some segments, like suburban housing or co-living spaces, could benefit, the broader real estate market may face uncertainty. The impact hinges on whether WFH becomes a temporary energy-saving measure or a lasting trend, with implications for office vacancies, rental yields, and urban planning.