You might consider these two parts of it separately:
- How will working from your parents' house impact your productivity?
- How will working from off-campus impact the relationships with, or perceptions of, your colleagues?
You mention #2 in the comments. Personally, I'm more inclined to consider #1. I have worked from home for most of the last 15 years or so. For me and the way my mind works, this is not ideal. I have found that I value spending time with a team, for the difficult-to-quantify dynamics that can lead to group brainstorming, bonding, etc. I can work on my own, but it can be isolating, and if I get "stuck" it can be difficult to get back to a healthier mental state.
Of course, you're not talking about living and working alone, you'd be with your parents. Everyone's family is different. For me, that would be a very difficult combination. I once stayed with my parents when traveling on business, but after the first time, I decided I need a hotel room when working in my parents' home town. They often would not fully understand my need to focus, and would have demands of their own on my time. Much better for me to spend a few days working and staying in a hotel, and then spend a few days visiting and staying with them once the work is done.
As for your colleagues, you have already gained the approval of your adviser, which seems like the most important part. Do you need the input and engagement of your peers to complete your work, or can you be fairly independent? If you will need their input, it might be best to talk with a few of them about it, and see what they think about collaborating virtually and/or occasionally. If you won't, you might not need to worry too much about what they think. Ultimately, you are responsible for establishing the conditions that help you do your own work, and you might do well to avoid letting others' perceptions influence your decisions too much.