India’s Co-Working space- Government needs to recognize this sector!


The trend of Co-Working space in India is escalating at a fast pace. But the 2020 year was a very tough time for this sector, the coronavirus pandemic had almost stagnated the growth of this sector. 

Knight Frank has conducted a research on co-working sector and according to their report, the share of co-working sector in new charter has fallen from 7% in H1 2019 to 2.9% in H1 2020. Apart from share, the sector has seen a steady decline in transactions in the first six months of 2020. 

‘Work from Home’ became the new norm in 2020 and the commercial ‘real estate and office space had a huge impact due to pandemic. Co-working space is also among them, which almost disappeared at the beginning of COVID-19 pandemic. But as the situation is getting normal, companies are now seeing versatile work options for their employees. No, doubt the co-working spaces in India have a bright future and its trend will grow in upcoming years. 

Related Article:- What Real Estate Expects from Budget 2021?

After overcoming difficult times, the sector has some expectations from the government with the upcoming Union Budget 2021. Their foremost demand is to be recognized within the real estate sector. 

What Anit Ramani says on co-working sector? 

“Amit Ramani, Founder & CEO, Awfis” shared his opinion- “Getting infrastructural status and benefits to the co working space sector will help to ease access to institutional lending”. It will generalize the confirmation process, and thus reduce the developer’s borrowing costs. Presently, the co-working space has occupied a considerable portion of India’s commercial real estate. It is estimated that it accounts for approximately 6.8 million sq ft. real estate area. 

Institutional capital requirement

Just like other sectors the co-working sector also needs financial assistance from the government. In order to expand globally, especially into Tier 2 and 3 markets requires more financial help and loans for the sector. The government should allow banks to sanction loans to co-working companies against the cash flow of co-working players. The government should provide some exemptions to investors in order to boost the funding. 

Relief in GST norms 

Just like other real estate sectors, the co-working sector also charges a GST of 18% to all their clients, which are mostly new businesses, small businesses, or startups. Reducing the GST slab would reduce the strain to their pocket and will certainly increase the demand of co-working space. “Ramani also quoted, at present co-working firms cannot claim input tax credits on construction services and work contracts as stated under GST provisions. So, the government needs to remove these hurdles to increase the outflow of cash and avoid financial difficulties. 


Co-working sector plays a significant role in the economic growth of country. The Government should analyze its importance under special schemes like (REIT) and provide tax benefits for the betterment of the industry. 

What Real Estate Expects from Union Budget 2021?

The Real Estate sector is considered one of the most crucial sectors for the Indian economy. It contributes more than 15% to the country’s GDP and apart from making major contributions to the GDP growth, it also provides employment to a major group of people. Hence, the sector plays an important role in economic growth and stability. 

It has played a vital role in recovering the economy after the coronavirus pandemic. The sector relies heavily on government policies and therefore favorable policies and regular cash flows are very essential for proper and continuous functioning of this sector. Continuous functioning ensures a good status thus helps to raise funds for projects from different schemes and proposals. 

Expectations of Real Estate sector from Union Budget 2021-22:

The first and foremost expectation from the budget is to set off GST paid on inputs like cement. This will help to reduce the cost of construction which ultimately results in lower property prices. 

In addition, the sector expects a GST amnesty for under-construction projects in the housing sector. These reforms will help in boosting the demand in the housing sector and surpass the prevailing financial crisis.

The sector also seeks high tax relief for home buyers as well. Under Section 24 (b) of the IT Act, a cap of Rs 2 lakh on housing loan interest needs to be improved and it should be increased to Rs 4.9 lakh approx. Giving tax relief to buyers will put more disposable income in their hands and eventually increase the demand.

A large number of real estate projects begin with the help of various sources of funding. Therefore, the government should guarantee some exemptions to the fundraising norms and ensure the accomplishment of substitute investment funds. Also, Government should boost the morale of private sectors to invest in the housing sector, mainly in affordable housing. 

In today’s scenario, liquidity crunch, the major problem faced by the real estate sector. This leads to delay in possession or project delivery, high project cost, and ultimately higher property prices. 

SWAMIH fund:- 

In September 2020, SWAMIH fund created to give relief and support the pending projects. It provides last-mile funding to middle-income and affordable residential projects. The government should continue SWAMIH funds and entrust more capital flows so that a large number of residential projects in Tier II and Tier III get a benefit. 


Now the Indian economy is recovering from a pandemic and all industries, including real estate, are looking at the Union Budget 2021 as a ray of hope. Because the budget has the potential to improve the economic condition. 

Experts said if the above-mentioned demands fulfilled in the Budget 2021-22, then real estate sector will gain a considerable boost for upcoming years.

Pune Real Estate Sales back to Pre-Covid, says report


There has been a rapid increase in the sales of higher segment properties. According to Gera Pune Residentiality Report, the 1200–1450-square-foot segment showed a 24% growth rate in sales. However, the 800+ square foot segment has not recorded any growth in sales of Pune real estate.

Pune Real Estate Back to Normalcy-

The Pune real estate sales are back on track and sales of affordable residential properties are steadily increasing and their demand is at an all-time high. As a result, there is a rise in the property price and share of big developers. 

Gera Pune Residential Realty has recorded real estate sales figures. They described the condition of Pune real estate in its bi-annual report. According to the report “Sales have returned to normalcy and are comparable to pre-Covid levels. Average property prices in Pune city have risen by about 3.4%. The Inventory has shown a steady downfall and the lowest in six years in absolute and percentage terms. Compared to the last five years the total number of projects has fallen by more than 14%. The number of new units launched has reduced by approximately 38%. However, at the same time the demand for luxury and premium plus segments increases. The report stated that the new projects with higher BHK i.e, 3 BHK witnessed a rise in cost. 

Related Article:- Impact of Coronavirus on Real Estate

Sales growth is getting back to normal. There has been a rapid increase in the sales of higher segment properties. According to Gera Pune Residentially Report, the 1200–1450-square-foot segment showed a 24% growth rate in sales. However, the 800+ square foot segment has not recorded any growth in sales. The first half of the year 2020 was a very tough time for Pune real estate, there was a decline in sales of both residential as well as the commercial sector. 

Words from Mr. Rohit Gera- 

Rohit Gera, MD, Gera Pune Residential Realty, stated, “Uncertain events have the ability to change the market dynamics. Lockdown and Pandemic is no different. The launch of several new residential projects collapsed in the first half of the year due to Covid-19. However, the new project launch recovers in the second half of 2020 and the sales are somewhat comparable to the period same as 2019. 

The commencement of new development rules by the Maharashtra Government have boosted the potential of developers. Now developers are back to the ground to craft new projects and they expect the same number of new projects would require more inventories in upcoming years. Gera said.

Maharashtra Govt. Boosts Real Estate Industry With New Concessions!



When the Maharashtra government provided further information on the introduction of the newly approved real estate incentive. The State Urban Department legacy department clarified that premiums offered by the previous government will remain in effect until August 2021.

By this move expected to allow more developers to take advantage of the concessional premiums. And demonstrate a rise in the number of developers who want approval for construction projects in Mumbai during the first 8 months of 2021.

The above line stated that builders in the city have to settle up with a premium to the additional floor space index (FSI) and compensatory FSI. These premiums only need to be paid at approx 17%  of the appropriate ready reckoner (RR) rates. These premiums are only for residential sector projects and are valid till the date August 19, 2020. Commercial developers must have to pay premiums at 20% of the RR rate. (“RR” also known as “Circle Rate”). 

Additionally, the premiums for developers opting to obtain a concession. These concession will be calculated based on existing circle rates or previous year rates i.e, 2019-20 rates. Hence, the real estate construction projects in Mumbai will be suitable for higher concession fees in comparison to the entire Maharashtra. But this benefit is discontinued after August 19. 2021. 

Uddhav Thackeray addresses meeting with the State Cabinet Infrastructure Committee.

This was recently announced by Chief Minister Uddhav Thackeray, he announced several strategies to reduce construction costs all over Maharashtra. The government has reduced the construction premium applied to new projects in the state to 50% by December 31, 2021.

Chief Minister Uddav Thackeray also addresses a meeting with the Infrastructure Committee of the State Cabinet. He discuss a wide range of infrastructure projects in Maharashtra. With several other officials, Deputy CM Ajit Pawar and PWD Minister Ashok Chavan also attended the meeting.

Union Budget 2021-22- A Silver Lining for Real Estate Sector!


Union Finance Minister Nirmala Sitharaman is preparing to present the Union budget 2021-22 on February 1, 2021. It is expected that Union Budget 2021-22 would help to revive from COVID-19 setback in a feasible manner. There is no doubt that COVID-19 has hit almost every sector therefore something needs to be done for all sectors. Also people from different sectors presented many proposals and suggestions to the Minister of Finance during preliminary budget discussions.

The same is true for the real estate sector, as they have also placed their demand, like flexible income tax norms and reforms in Good and Services Tax (GST). They consider that central government and some state governments have announced a series of measures to develop the real estate sector, which was low for the last two or three years. It has helped to stimulate demand in the third quarter of the current financial year.

Effect of COVID-19 on Real Estate- 

Corona-virus has a severe hit on all industries including real estate sector. Insecurity of jobs has led many home buyers to postpone their property purchase. Many builders have extended the possession period due to delays in supply of construction material, shortage of workers, etc. Many retail and entertainment outlets has been closed temporarily, this has put the future commercial real estate on hold. Work from home trend has reduced the utilisation of office space in Bangalore, Gurgaon, Noida, Chennai and other metropolitan cities.  

Related Article:- Impact of Coronavirus on Real Estate

Expectations from Union Budget 2021-22

Mr. Lincoln Bennet Rodrigues, Founder and Chairman of the Bennet and Bernard Group, known for its luxury vacation homes in Goa, expressed his views on upcoming Union Budget 2021-22. He said “The real estate sector is a major pillar of India’s GDP, and has undergone substantial changes over last few years. We anticipate further easing of income tax reforms in the upcoming budget.

The sector also expect the government to implement various reforms and accelerate consumption to grant bank loans to ease liquidity. A lower home loan interest rates, stamp taxes, and lower registration fees, will significantly affect the cost of the project and will definitely motivate home buyers to purchase the property. 

After this epidemic, people realised the importance of large spaces and self-sufficient communities. This will definitely increase the desire to have bigger space for the same capital. Hence, places like Goa will surely attract the investors because it offers a number of amenities”. 

In conclusion, we expect the government would realise the problems of real estate sector. And will take the necessary measures to strengthen the real estate sector and development of solid infrastructure.

Bengaluru Transit Infra Project- A Boost to Real Estate in 24 Locations!

According to a report by Bengaluru Urban Infrastructure, “the upcoming Bengaluru Transit Infra Projects will benefit the real estate development in various metro cities”. According to a study by Knight Frank. These Infra Projects are being implemented under different models costing more than $10 billion. 24 specific locations have been identified which would be benefited from these Transit Infra Projects. More than 120 kilometers and 200 kilometers of metro and road projects are under the phase of construction in Bengaluru. 

Basically, Transit Infra Projects are designed to improve the connectivity between residential and metropolitan areas. It improves the opportunity for employment, healthcare, and education. Metros, Highways, Bridges, etc. are some examples. 

Benefits of Bengaluru Transit Infra Projects

It is expected that these Bengaluru Transit Infra Projects will boost the large-scale real estate development across 24 most important locations in Bengaluru city. These projects would be beneficial for commercial sectors. Specially for those office hubs which are located in isolated locations and require connectivity primarily Public Transport facilities. It is estimated, between 2021-2025 the projects like Bengaluru metro phase 2, extensions gets completed. Other major road projects like peripheral ring road, suburban rail network, and satellite town ring road are likely to be completed after 2025. 

Whitefield, Bellandur to Marathahalli Beli, Mahadevapura To KR Puram Belt. Electronic City Phase-1, and Electronic Phase-2 are some markets that will likely to be impacted by transit-orient infrastructure projects. 

Rajani Sinha, National Director and Chief Economist- Research Knight Frank India has quoted that- Development of Bengaluru transit infra projects will not only improve connectivity. It also reduce the traveling time to major Office hubs and employment locations. These huge upcoming infra projects would also boost the real estate market.

Also Read:- Locations to buy House in Bangalore

Nitin Gadkri Expressed his Concern Over Rising Cement Price!

“The cement factory is taking advantage of this situation. It is not in the national interest. We are planning to implement Rs 111 lakh crore on infrastructure projects in the upcoming five years. If the price of cement and steel increase like this, then it will be very difficult for us”.

On Sunday i.e, 10 Jan 2021 the Union Minister for (MSMEs) Nitin Gadkari lashed out at Cement factories and said they are worsening the present situation of the real estate market. 

Words from Developers on rising cement price

The big players in the cement and steel industry are indulging in monopolies to jack-up prices. Several developers have said the cement and steel industry are arbiritaily increasing the price. In January 2020 the price of a 50 kg cement bag was around Rs 350, but now it has increased from Rs 430 to Rs 450 which is around 23% to 28% increase. They also claimed that the rate of steel per tone was around Rs 40,000 and has now crossed Rs 54,000 which is around 35% increase.

Gadkari addresses press conference with Builders Association of India

While interacting with Builders Association of India, Western Region via video conferencing, Nitin Gadri said- “The cement factory is taking advantage of this situation. It is not in the national interest. We are planning to implement Rs 111 lakh crore on infrastructure projects in the upcoming five years. If the rates of cement and steel go like this, then execution of upcoming projects will become challenging for us.”

“It is very difficult to understand the price hike since every steel company has its own iron ore mines and there has been no increase in labor and power costs.” Further, he added. 

In conclusion, he said the government is facing maximum problems in the real estate sector. He further said that the government is locating the cause of this problem and is in process of finding out the solution. He also said he will take the suggestion from the Finance Ministry and Prime Minister Narendra Modi.

Will Real Estate Boost in 2021?- Real Estate Condition in the upcoming year.


COVID-19 has affected all the business including the real estate sector, the commercial sector in particular has suffered a setback. However the situation is improving day by day and is much better than past few months. 

Due to several government policies and relief packages the Indian Economy is reviving at a fast pace. Now more and more buyers are heading towards the housing sector. 

Low interest rates and tax relief are some common initiatives taken by the Indian government. These relief packages also drive more foreign investment into the Indian Economy. 

After the despondent time of lockdown, the real estate sector is improving and has emerged as the safest investment option in comparison to other sectors. The government has narrowed down its focus on the residential sector, according to a survey the reduced home loan interest rates are around sub-7 percent hence, giving an extra benefit to the residential sector. 

RBI quotes and statements-

The RBI has predicted that in the first quarter of the next fiscal year, the growth could be 21.9 percent and overall 6.5 percent for the first half of 2021-2022. The RBI has quoted so, because of the base effect, as the economy contracted by more than 20 percent in Q1 2020-2021. They have also mentioned that it would continue to employ instruments to ensure sufficient liquidity.

Many real estate companies or developers are praising the government policies- 

Harvinder Singh Sikka, MD, Sikka Group-Since the government has reduced the home-loan interest. We have observed an increase in inquiries and the same will continue in 2021”.

Nagaraju Routhu, CEO, Hero“Due to the reduced home loan interest and other relief packages by the government and builder the Tier II and Tier III cities have seen an increased demand in the residential segment”. 

Hence, we can conclude that the real estate market, especially the affordable housing market will grow in the coming months, and there will be more improvement.