As work from home fades, employees are returning to their metro workplaces, reigniting demand for rented homes and offices. But supply hasn’t caught up, leaving rents to jump and rental yields to rise from about 2%–3% to 4%–5%. The key question now is whether this crunch is temporary or a durable post-pandemic shift.
New workplace rules will force offices to decongest, limiting occupancy to about 30–40% of staff. With recession fears looming and work-from-home likely to remain, many companies are unlikely to fund bigger office spaces. That leaves landlords bracing for falling demand in the next two to three quarters.
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Western and Saudi companies in Riyadh have extended work-from-home advisories as fears rise around a looming U.S. deadline for Iran tied to the Strait of Hormuz. The move comes after Iran threatened to target U.S. tech firms amid continuing regional attacks. Advisories reportedly cover key business districts across Saudi’s capital, disrupting normal commuting.
With tensions rising across West Asia, tech companies and global capability centers are activating business continuity plans. Work-from-home policies, travel advisories, and temporary office closures are being rolled out to reduce disruption. India is increasingly positioned as a stable hub for global operations, while firms also prioritize employee well-being and operational resilience amid geopolitical uncertainty.
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