A rebalancing between city, suburbs, and rural areas

#HybridWorking - There's no doubt that today we're in the grip of a remarkable and quite unprecedented societal shift that is radically changing the geography of work. A shift that enables people to work in the way they want is overwhelmingly positive. 

It's a subject that's close to my heart. As CEO of IWG plc, the global leader in delivering hybrid work solutions to many of the world's largest (and smallest) businesses, I've had the opportunity to see first-hand the transformative effects of the hybrid revolution.

I’ve been talking about the rise of hybrid working for more than two decades now – a phenomenon enabled by the liberating effects of technology, cutting the ties that used to restrict people across the world to a single (and usually city centre-based) workplace and instead empowering them to work in the heart of their local community. As a result, Regus has seen record demand in our co-working and office locations across the suburbs, small towns and rural areas in all of the global markets in which we operate.

The city has been at the epicentre of people's lives for generations. Its pull has emptied communities of their most economically active talent. Commuter-belt towns and parts of cities have become barren during daylight hours, solely serving as work destinations.

Perhaps above all, the city-as-workplace has exposed millions to the destructive daily commute. Little has done more to add to human misery than this horror, brought about in the 19th and 20th centuries by business bosses’ determination to keep their people under their eye – and their control.

However, things are changing fast thanks to the recent conjunction of digitalisation, environmental awareness and Covid-19. Research from IWG and Arup illustrates the sheer pace of the transformation.

The covid-19 lockdown has led to a shift in property buying in South Africa, and one of the biggest trends to emerge has been the migration away from big cities to smaller towns along the coast or in more rural settings. a trend we are witnessing globally. 

One of the biggest drivers of the current movement away from the big cities is the desire for more living space and more opportunity to take part in family outdoor activities – and the prospect of buying both these things for much less in the countryside. Prices are often considerably lower in smaller towns, which gives buyers the opportunity to purchase a bigger property for the same money and, often, the chance to get closer to nature too.

These changes are having an impact on property prices. Residential property prices increased by 7,3% in 2021 compared with 2020. Nationally, residential property prices increased by 5,8% in the 12 months to November 2022, according to the latest RPPI statistical release. Prices increased by 7,4% in Western Cape and by 3,6% in Gauteng over this period. The City of Cape Town and Ekurhuleni were the main contributors to the annual inflation rate for all metropolitan areas in November 2023.

It’s about more than where people want to have their homes. It’s also about where they want to spend their time and money. Mobile phone data tells us that footfall in small towns, suburbs and seaside communities has risen by a full 50% since 2019.

The impact of that 50% rise in footfall, creating new opportunities for many communities, is clearly reflected in our research. It reveals how the resulting higher levels of economic activity in suburbs and small communities are breathing much-needed financial vitality into areas. 

And it aligns with the findings of another IWG/Arup research study, which measured the positive economic impact to be gained from the rebalancing of where work takes place. This found that rural and suburban economies could generate annual increases in local consumer spending.

Today, slightly more than a third of South Africa's middle class is splitting their work between home, the HQ and a flexible office space close to home, following a hybrid approach, while 46% of high earners are doing the same. and it's continuing to grow in popularity. 

Employees in South Africa who practice hybrid working models as part of their digitising workplaces have experienced better overall outcomes in areas such as mental, physical, and financial well-being, according to the new Cisco Global Hybrid Work Report, an extensive study which, among other things, examined five key areas of employee well-being including financial, physical, mental, social and emotional well-being.

The study polled over 10 000 employees across the Europe, Middle East and Africa (EMEA) region. In South Africa, 86.4% of respondents said hybrid and remote working has improved all aspects of their well-being. In addition, just over 82% reported that their work-life balance has improved, mainly due to more flexible work schedules. Close to 61% said they saved at least four hours per week thanks to reduced commuting times, while 27% saved eight or more hours a week.

Daily commuting to city centre offices has the most significant carbon footprint of any way of working. So, it resonated strongly when Future Earth’s Global Carbon Project reported a 2.4 billion-tonne fall in fossil CO2 emissions during the 2020 lockdowns, with the largest proportion coming from reduced transport emissions.

Our latest research on the environmental impact of hybrid working was conducted in partnership With Arup, a global leader in sustainable development. The study showed that the adoption of the hybrid model could reduce individuals’ daily carbon emissions by between 49% and 90% 

That’s why clear-sighted policymakers, planners and businesses are embracing its benefits in their droves. And it’s essential for all of us and our planet as a whole that these visionaries convince their peers to listen.

For more information contact us on: 

https://www.regus.com/en-gb/about-us

https://www.regus.com/en-gb/south-africa

By Mark Dixon, Founder and CEO, IWG plc - Parent company of Regus