The Union Budget 2023 has made announcements on ease of doing business and has reduced the number of compliances that companies need to run establishments. This is bound to boost business and encourage more entrepreneurs to set up new businesses benefiting coworking sector.
The extension of tax holiday for start-ups by one year is a welcome measure as more start-ups would be motivated to scale up their business and enhance investment. The significant push to infrastructure will boost the commercial real estate sector and in-turn aid in faster establishment of coworking spaces in tier 2 cities.
While these measures are welcome as they may create a positive ambience, the budget did not have any specific measures for the coworking sector to enable its higher growth trajectory – be it lower TDS, special tax incentive, boost to start ups etc to enable us to provide the real estate solutions at economical rates and help in better flow of working capital.
As companies increasingly incorporate hybrid work model within their operational strategies, demand for services offered by co-working firms will continue to surge. We believe that hybrid working will become even more mainstream as we go ahead.
This will push the flex-spaces sector to elevate their services further to offer more new-age office spaces. Going forward, we hope that the government looks at addressing regulatory concerns and encourage more coworking firms to open up through a series of both financial and non-financial incentives and ensure faster economic growth.
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