India’s co-working sector wants recognition under real estate, tax benefits as flexible workspaces aim for a significant revival in the post-COVID era

  • India’s burgeoning co-working space was almost handed a death certificate at the beginning of the COVID-19 pandemic. But as companies are now looking at flexible work options for their employees, co-working spaces in India have a chance at a bright future again.
  • And to turn the tides in their favour, the sector has a list of demands from the government with the upcoming Budget 2021.
  • At the top of their list of requirements is their need to be recognised within the real estate sector.

With 2020 becoming the year of ‘work from home’ becoming the new norm, commercial real estate and office spaces took a significant hit. And among them also lies India’s burgeoning co-working space, which was almost handed a death certificate at the beginning of the COVID-19 pandemic. However, as companies look to realign in the post pandemic era with flexible work options for their employees, India’s co-working spaces have a chance at rebuilding a bright future again.

“As companies look to resume business, redesigning and restructuring of existing real estate will pose yet another challenge; however, coworking spaces will be able to respond to design changes required post-COVID-19 quicker and more efficiently than traditional office spaces,” said

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Chicago hotel owners are holding out for a post-COVID comeback

“At the start of the pandemic there was just a lot more uncertainty than we have now. We’re at the point now where we can see the light at the end of the tunnel,” he says. “I think there’s a general perception that banks just punt on this stuff. And they don’t.”

Even if weary lenders eventually enact a financial reckoning on bad loans, discounts may not be as drastic because of the deep pool of buyers. Private real estate funds targeting opportunistic and distressed assets were sitting on nearly $125 billion ready to be deployed at the end of December, 50 percent more than the dry powder available at the end of 2010 coming out of the financial crisis, according to financial data tracker Preqin.

Those buyers and potential sellers agree travel will come back with a vengeance, but they’re not on the same page as to when or how bad their losses would be in the interim. That’s leaving a sizable gap between what either thinks hotels are worth today, says Jim Costello, senior vice president at RCA.

“If I’m an owner knowing that six months from now we may be back to normal . . . unless

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