Coworking spaces have become a central pillar of India’s fast-evolving commercial real estate landscape, driven by the rise of hybrid work models and growing demand for flexible, collaborative workplaces. With large enterprises increasingly adopting flexible office strategies, industry players are looking to the upcoming Union Budget for policy support to accelerate sector growth.
Manas Mehrotra, Founder of 315Work Avenue, said the coworking sector expects targeted reforms in taxation and financing to improve viability and scalability. He called for a concessional, slab-based GST structure for coworking services, particularly to support startups and small businesses by easing cash flow pressures. Mehrotra also highlighted the need to remove restrictions on input tax credit for interior fit-outs, noting that coworking operators make significant upfront investments in infrastructure.
In addition, he pointed to the need for rationalisation of the 10% TDS under Section 194AB on coworking payments, which he said would support healthier working capital cycles and sustainable sector growth.
Mehrotra emphasised that access to institutional finance at competitive rates, faster approvals through single-window clearances, and increased infrastructure investment would be critical in enabling coworking expansion, especially in non-metro cities. As organisations increasingly prioritise employee well-being and operational efficiency, he said A-grade flexible workspaces are becoming a long-term strategic requirement rather than a temporary solution, positioning coworking as a key growth engine for India’s office market in 2026 and beyond.
