Budget 2019: Demand for coworking spaces to go up with measures across rental housing, commercial real estate

Updated: July 12, 2019 4:30:47 PM

Budget 2019-20: Amongst the key initiatives announced included the e-verification mechanism that will ease the angel tax obligation and is bound to strengthen the startup ecosystem.

Budget 2019, Budget 2019 India, Union Budget 2019 India, Budget 2019-20Budget 2019 India: The co-working sector is slated to become the mainstream choice in the Indian commercial real estate sector too.

By Amit Ramani

Budget 2019 India: The budget came as a respite to start-ups and businesses seeking investments. The government announced a host of initiatives to further boost India — the youngest start-up nation amid its continuous efforts to ensure a sustainable business environment for budding Indian companies.

Amongst the key initiatives announced included the e-verification mechanism that will ease the angel tax obligation and is bound to strengthen the startup ecosystem. The measures across rental housing, commercial real estate, infrastructural development, and technology will indeed be a boon and lead to increased demand for coworking spaces. The coworking segment has had rapid growth with positive interests from the private equity funds in the recent past. Post budget, the commercial sector is expected to witness more fund infusion from the developers and institutional investors alike. 

Also read: Budget 2019: New National Education Policy, focus on research and innovation to boost number of startups

The coworking industry has witnessed incredible growth in India and is slated to become the mainstream choice in the Indian commercial real estate sector too. With the industry expected to reach a valuation of $2.2 billion by 2022, it sets the tone for transformation within the sector. In addition to this, tier-II cities are expected to grow to 8.5 million seats by 2020 as per JLL, coming to the forefront with respect to shared workspaces. Hence it is crucial for the government to further accelerate and bolster the growth of the concerned patrons. 

The announcement of a TV channel for startups is certainly a platform that would aid their progress. It will help them network and source the right resources overcoming the startup concerns. Easing out FDI rules into various startup segments and a multitude of enhancements to the digital payments ecosystem are expected to bring laurels to the startup ecosystem. 

With the Indian economy set to touch a valuation of $3 trillion in the current year, the initiatives announced clearly focus on the government’s vision of building a ‘New India’ with startups and new corporations right at the core of the new economic regime. Given the government’s view of holistic progress, we welcome the budget’s intentions of steering the way for envisioning the development of macro India and thereby the welfare of the masses.

(Amit Ramani is the CEO and Founder at coworking startup Awfis. Views expressed are the author’s own.)

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