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Union Budget 2023-24 _ Reaction from Real Estate Experts

The Union Budget has provided indirect boost to the real estate sector with enhanced capital expenditure and gift to the salaried class by providing increased disposable income at hand with the higher tax rebate. The PM Awas Yojana hike is great news in the affordable housing market and this increase in allocation will help the government achieve its goal of providing affordable housing to all and contribute to the overall growth and development of the country. Reduction in compliance and relaxation of regulatory provisions is a welcome move from ease of doing business perspective and will aid the growth of the real estate sector. The enhanced focus on digitalisation too which will create more jobs and propel demand for residential real estate across the country. The unwavering focus on infrastructure is a welcome move for the industry. The buoyancy which we have witnessed in the realty sector in the recent past is set to continue in the near term. While the budget has addressed some key issues, there are currently several grey areas when it comes to schemes, taxation, funding and others where the government should provide a helping hand going forward. It is imperative for the government to pay special attention to the real estate sector and have provisions for its well-being in the near future. Overall, we believe that the union budget has ushered in a balanced combination of reforms and regulations, which will, in turn will contribute positively to India’s growth story. – Mr. Ramani Sastri – Chairman & MD, Sterling Developers


The budget could have had some specific measures for the coworking sector

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. – Manas Mehrotra, Founder, 315Work Avenue

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