Union Budget 2024: Co-working and Co-living Sectors Seek Tax Cuts, Integration with SEZs
As India Inc awaits the presentation of Union Budget 2024, stakeholders across the co-working and co-living segments are demanding tax cuts, integration with special economic zones, and more.
Union Budget 2024Co WorkingCo LivingReal EstateCommercial Real EstateSezsGstTax CutsReal Estate NewsJul 17, 2024
The co-working segment has been on an upward trajectory since the Covid-19 pandemic, gaining increasing market share within the larger commercial real estate sector. Large enterprises have also shifted towards this category, adopting a hybrid work culture. Meanwhile, the organized co-living segment, albeit still in its nascent stage, is giving the rental housing market a run for its money.
One of the top demands from co-working stakeholders is a reduction in Goods and Services Tax (GST) rate for small-scale co-working clients. This, they argue, would make the segment more accessible to startups and small businesses, expanding the industry's reach and ultimately bringing in revenue.
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Frequently Asked Questions
What is the current market share of co-working spaces in the commercial real estate sector?
Co-working spaces currently hold around 9-10% of the total Grade A office stock in India.
What is the expected growth of the co-working segment by 2026?
The co-working segment is expected to reach 80 million square feet by 2026.
What is the current tax rate applicable to co-working spaces?
The current tax rate applicable to co-working spaces is 10% TDS.
What is the benefit of integrating co-working spaces with SEZs?
Integrating co-working spaces with SEZs could create a win-win scenario, combining the co-working sector's agility and focus on innovation with the SEZs' beneficial regulations for businesses.
What is the current state of the co-living segment in India?
The co-living segment is still in its nascent stage, but is giving the rental housing market a run for its money.
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