I think flexible work timings are more appropriate rather than work from home.. in my office people come late in the mornings around 12 and leave late around 9 or 10 in night, this way they avoid peak hour traffic jams and other commuting hassels as well as they get enough time to finish off some personal work if any in the morning hours.. work from home facility should only be used in case if you are not feeling healthy to go office or if somebody in your house needs you to be present, so in this case you can manage your tasks from home.
My observation in the industry is that the people who are of working type will work anywhere and they do not like interference from the so called leaders and so called managers who often are unfit to manage them. Majority of the Indian workforce is timepass fellows who will prefer to pass time and escape. It is these timepassers who need the so called leaders and so called managers who are functioning like watchman - for the watchman it is fine if you do not do anything and sit on your chair but if you get up from the chair he does not like it. So this work from home concept should be viewed from the above angle and work from home should be available to the working type of people because otherwise they have to waste hours to travel and also have to eat worthless food available in the companies. In most of the IT companies in india in every project only some 10% people work and rest are timepassers who are kept only for billing reasons, so whether you give them work from home or not it does not matter. They can join 10 companies and work from home for all of them at once and enjoy salary and benefits from all of them. As such private companies are owned and managed by thieves so it is better not to work and earn full salary, because stealing from the theif is not sin.
There is no blanket rule to encompass all kinds of companies. For instance, if the company is into publishing or other content-writing, then the writers are probably more productive when they work from home. Also, people doing stand-alone tasks such as research will also be more productive when they work from home - away from the disturbances of office. On the other hand, sales force and client-interfacing workers can never get the best output if they work remotely from home. And, people working as a part of a team task should work with their teammates for best productivity, innovation and brainstorming.
So, yes, companies should give employees the work-from-home option depending on what type of work they are supposed to do.
Commercial rentals are always high comparitively and since Builders and land owners take pride and sell lands and flats at such higher cost to Middle class. Imagine No IT hubs in and around your locality all work can happen out of home. Manufacturing Hubs only require staff which can be hosted outside the city. Property prices ll reach a minimal. Corporates would save Millions in rental and middle class can afford homes in their desired location.