FM Sitharaman announced that the 2022-2023 budget would support economic growth through increased public investment as India, Asia's third-largest economy, recovers from the pandemic-induced recession. The budget is built on four pillars: inclusive development, increased productivity, energy transition, and addressing climate change, aiming to shape India's future from 75 to 100 years.

As the presented budget lists pressing needs to ensure the economy is robust, we bring forth the highlights of Budget 2023 for the construction sector alongside industry experts and real estate leaders’ views and reactions.

Economic boosters

The Finance Minister has forecasted economic growth at seven percent for FY 2023-24. With a planned capital expenditure of Rs 10 lakh crore, a YoY increase of 33 percent, more development would be seen across the country, which would attract more investors. This would ensure improved cash liquidity in the market and thereby, benefit the real estate sector.

Creating urban infrastructure in tier 2 and tier 3 cities via the establishment of UIDF

The Finance Minister placed a strong emphasis on urban planning in Tier 2 and Tier 3 cities in the budget. With a focus on sustainable and planned development, the housing sector is expected to receive a boost.

The National Housing Bank will manage the proposed Urban Infrastructure Development Fund (UIDF), which will provide support for infrastructure development in Tier 2 and 3 cities. A budget allocation of Rs 10,000 crore has been proposed for this fund.

Additionally, five centers of excellence in urban planning will be established, providing the sector with access to trained professionals. A high-level committee comprised of urban planners, economists, and institutions will be created to formulate urban planning policies, implement plans, build capacity, and improve governance.

Infrastructure 

This year's budget announces the upgrade of 50 airports and ports. The Infrastructure Finance Secretariat will support private investments in various infrastructure projects, such as urban development, power, roads, and railways.

Last year's budget outlined the expansion of National Highways to exceed 25,000 km and introduced PM Gati Shakti plan for a coordinated strategy to develop cargo terminals, expressways, and other infrastructure.

Jayakumar Krishnaswamy, Managing Director of Nuvoco Vistas Corp. Ltd, states, "The 2023 Union Budget provides a substantial boost to the infrastructure sector, aiding the recovery and growth of the economy. The government's focus on green capital expenditure will address the industry's energy needs, making this budget a visionary approach to long-term growth."

Ease of doing business

The Union Budget 2023-24, includes a slew of measures for ease of doing business. About 39,000 compliances have been reduced and amendments to Central Acts have been proposed which will make governance friendly for businesses.

In Short

This year's Union Budget is expected to be a positive one for the real estate sector. The Finance Minister has proposed a 33 percent increase in capital expenditure for the sector, which would ensure improved liquidity in the market. Additionally, the proposed Urban Infrastructure Development Fund will provide support for infrastructure development in Tier 2 and 3 cities.

Other Highlights

Apart from the above insights here are some of the key highlights of the Union Budget presented,

• Fiscal deficit to be at a low of 5.9% in FY 24 from 6.4% in FY 23

• Public expenditure to be more 10 Lakh Crores and 2.4 Lakh crores on Railway infrastructure n upgradation budget allocation 

FAQs

How much sum has been budgeted for Smart Cities in the Union Budget 2023-24?

The Government has allocated Rs 16,000 crore towards its Smart Cities Mission for FY24

Who will manage the Urban Infrastructure Development Fund?

The proposed UIDF will be backed by the National Housing Bank. 

What is the budgetary allocation for the transition to a low-carbon economy?

A. A budgetary allocation of Rs 35,000 crore has been made for the transition to a low-carbon intensity and green economy.

Who will create urban infrastructure in tier 2 & 3 cities?

The National Housing Bank will manage the proposed Urban Infrastructure Development Fund (UIDF), which will provide support for infrastructure development in Tier 2 and 3 cities.

Anyone working in an office environment would want that they should have a comfortable workday and face no hassle in the workflow. As we all know that we need to sit in the office for at least 9 hours and sitting in the same position straight can take a toll on our back and add more health problems as well. Our body is not built to sit and work continues as it is now in the modern work culture but this is not at all acceptable to our ancestors. Having just a comfortable chair to sit in cannot add to making an employee more productive.

The chair and desk you sit on and all the places you visit in the office must have furniture that is ergonomic and apart from this, the lighting systems and all the touch points of the users matter.       

Here is how the Right Office Furniture Can Enhance Your Productivity at Work,

Chairs & sittings 

 When you sit in a single place for long periods of time you are prone to have back pains, headaches as well as tiredness. The same is the case when you work in your offices sitting for a long and then coming back home you face such issues. Hence, the first and foremost furniture to be done right is your office chair and other sitting places where an employee generally sits and works for long hours.

The right choice of chair can help avoid all such problems and also provide you with many health benefits. A good and ergonomically designed chair will help you give support to your back, legs, hand, neck, and shoulder hence allowing you to sit for long hours without any discomfort. It will also help to better your body posture while you are at work, hence it is very important to have an office chair that will give you comfort and keep your day in your office space a good going. 

Desks

Not only the chairs but also desks should be designed in such a way that they will provide the utmost comfort to the occupant as the desk size, usable area, and height also matter for better ergonomics and better usability. If the table height is not adequate like too low or more it can affect your neck and back causing strain and pain. Hence the desk or table must be chosen wisely so that will not affect the health of the user.

Storage Units

Often employees and occupants of the office space need to keep all the things related to their office and personal use. Hence adequate and functional storage units must be built in order to help employees and occupiers to get organized by storing their belongings and other stuff in the storage units such as cupboards, drawers, etc.

Correct lighting

Lighting can directly affect your productivity at work as it is one of the factors that helps create a good environment around you. Low lighting will make you feel everything around you dull and intense lighting will over brighten everything around you, both these factors will affect your productivity and you may lose your productivity at work. Adequate lighting will help uplift the environment around you with a good ambiance in which you will feel comfortable working.

There should be adequate natural lighting as well as artificial lighting in your office space by keeping big windows in the office properly covered by curtains. 

Colours

Colours in the office space can directly affect our moods as they have a certain ambiance and emits some type of energy. As every colour has its own significance for the occupiers.

For example, blue colour implies a sense of comfort, green colour energy & positivity, and yellow inspires cheerfulness and positivity. Choosing a definite type of colour pellet for your workspace will definitely help you give a good ambiance to your office space, thus making it more welcoming to your clients, investors, and employees and will make them more productive in their respective work.   

Conclusion

To ensure productivity and a positive representation of your business, it's crucial to prioritize the comfort of your employees. A pleasant workplace leads to better results, and investing in ergonomic furniture and a stylish office design can enhance focus and boost performance. Remember, the right furniture plays a key role in maintaining the happiness and well-being of your employees and helping them to be more productive.

We all know a common saying - A friend in need, is a friend indeed, this proverb is enough to define the actual value of a friendship. Friendship is all about the comfort and happiness that we get from our known favourite people. We have that one friend who is always happy, high on good vibes, and positive; and one friend who many a time is low and with negativity. Both of these friends are helpful to make us understand things around us for a reality check, thus balancing our mood. 

There are many different types of people around us who we might need and vice versa in and around our work chores. Here are some types of friends you may need in your squad while at work to help you get through your work day. 

1. The one who is Career Oriented

These are the type of friends who are always thriving to gain new skills and working on new projects and assignments in their organization. They are always in some work and most productive around. Having such type of friends in your office squad is a boon, as they will always help you keep focussed and motivated in your work and also in all your career goals. These types are always helpful in getting advice in terms of your career and office work goals. 

2. The one who is a Mentor

There is always a wise and sound person around us who is well settled and everything around his life is sorted and seems to have a life together. They are the ones who offer solutions to all your problems in complicated work activities at your workplace. They not only offer work advice but can also help you in your personal life with suggestions and advice on your problems as well. You are lucky if you have such friends, because even after you are not working together then also you will be good friends lifelong. 

3. The one who is your Bosom friend

The friend who is always available for you and he/she is the one with whom you can talk about literally anything. You can vent all your problems, experiences, and any such things without worrying about getting judged. They are your shoulder, you can rely on them and literally cry with them as well, you have their back always in the office as well as when you are away from the office.  But you must be careful always and assess the situation so that it's not only you who is always venting your problems, you must change your role to a Listener, as they also need you many a time.

4. The one who is always socially active

This type of friend is the one who is always active with everyone in the office and uplifts the environment around. Everyone has a good time with this friend, who cheers you up no matter what the situation is. If you are feeling down you can have a fun time with him/her and get yourself a little bit uplifted. As this friend talks to everyone in the office, you can get many insights into things in and around the office. If you need to know something you can simply ask them and they will definitely have something to tell or the source where you can get the information. 

5. Your partner in crime

This a friend on whom you can always count for each situation, whether you are working late hours or want to have some good time in the office with, they are always available for you and you are for them in any situation. You come to the office together, leave together and have breaks together. These friends are the ones you must have at your workplace.  

In Closing: 

Having friends at your workplace is a gratifying experience one can have. They make your work and days go faster, and you can have a good time working together in your office space. They help you grow in your career and life and you also play an important role in their lives. Make as many friends as you can in and around your workplace and have a good work time.

One who runs a business might feel the need of renting some type of commercial property at some point in that business life. There are a variety of commercial space options available in the market but choosing one as per all the needs is not an easy task to do. It might need too much research in choosing the right space which is non-residential as well as can fetch as much business as it can, considering its location and other factors. 

Commercial spaces refer to a business place where we can run our businesses. It can include small shops, offices, inventories, malls, or any other company type. These spaces might have out-of-the-box requirements as per any business needs. Apart from this, these spaces are huge and located in complexes and mall areas which might need all the huge electrical wirings, ventilations, passages, common or private washrooms, etc. All the setup for such spaces is different from our residential buildings and others. Also for setting up the offices these places must be equipped with connectivity with wifi, security, CCTV surveillance, parking, and many such basic things. 

While getting a commercial space for your business you must know all your business requirements and should have done a particular business study. As each business has a different type of requirements the factors such as Budget, Location, type of space, and transport facilities differ from business to business. 

There are many types of questions according to business needs one needs to ask to self before choosing a business location like,

• What Profit Income do I expect?
• What is the customer group you need to target?
• What will be the total cost to run the business?
• What is the daily work plan?
• What is the production? How to plan its smooth flow?

Let us analyze some more points to get a better idea, here are some tips for choosing a commercial rental space.

The Location  

This is one of the most important factors while selecting the space for your business as it can have a direct impact on your business both positively and negatively. If your business relates to production or any storage facility then it can be located away from the city chores and crowded areas such as highways. But this must be located such that there are all types of transport facilities available and easily accessible. For different types of stores, we must always choose a place where it is a frequent flow of population. 

You can prefer Non-residential areas in industrial, commercial, and administrative buildings located in the central region that are most in demand.

Floor Layout

The layout of your commercial space should always be taken into account as per your business needs. As for offices we need to keep in mind the occupancy now as well as in the future if you scale up your business. The sizes which can satisfy your needs easily should be chosen always, not too small and not too big. 

Renting and leasing

This should be the foremost factor after choosing the location of the space as learning the potential income from the business and whether it is feasible to pay the rent. You must learn the lease options of the property and whether they fit your needs or not.  

Building Infrastructure  

Many businesses have many different needs and requirements, which is why while choosing a location one must check all the necessary services such as water supply, electricity, power backup, ventilation, accessibility, parking, housekeeping, wifi services, and other connectivity options. One must also ensure that the infrastructure can be a well fit for your business.

Security  

This should be accounted for when your business is manufacturing or production based, or you have inventory for your business. Good security should be a part of the building or the space you will be using for your business.

In Summary:

Getting a commercial space has been in demand nowadays due to the increasing number of startups and the expansion of many companies. We can also see more such spaces in the market, the owners are getting more and more profit from them, and also the tenants are enjoying their business by gaining profits.

In the last 3 years, we have seen a change in the world, a change that no one expected in any way. A pandemic taught us that we as a human have a strong ability to adapt to new situations and evolve through them. In turn, it’s been just 2 years since the Covid pandemic came and we have got ourselves through and have come up with different solutions to the problems it gave us.

One such thing that covid helped us evolve in is the work culture, as we can see it gave a concept of remote working without hindering work productivity by any means. Corporates let their employees work from home and this gave rise to WFH culture. 

Now we can see that Working from home became a new trend, people are not willing to work from their respective office locations as it helps save them time and money. Always working from is also not feasible as it brings a feeling of loneliness and hinders collaborations with coworkers. This is the reason many corporates and companies have called their employees back to the office.   

To make it equal we all came up with a middle solution: Hybrid Working, one can work from home as well as from the office thus maintaining a work-life balance. On top of that, a traditional office cannot hold such flexibility as it will be a waste of money and space hence we all came up with coworking spaces. In this way, we can see that coworking spaces represent the optimal solution for the future of hybrid work. 

What is coworking

Coworking is an open office space with tons of amenities and technologies offering dedicated desks, private cabins, meeting and conference rooms with reception, lounge, play area, live kitchens, and cafeterias.

All these are shared amenities by professionals hailing from different work fields and expertise. These spaces can be used by  freelancers, businesses with small teams, startup owners, or big corporate giants. 

How do Coworking spaces represent the optimal solution for the future of hybrid work?

If a corporate wants its employees to work in a hybrid work model, conventional office space is definitely not a choice for them. As conventional space will not be cost-effective and will not be occupied each day, hence a waste of space and capital.  Hence, going with a hybrid work model a company can opt for coworking space which is easy to lease and have no long lease options as one can rent a space for as less as a single day. Hence, employees of a company can come and work together the desired days of the week and in turn, the company can save their running costs by just paying for the space their employees occupy. 

Employees can have comfort working from home as well as from the office by balancing their work and life schedules. Nowadays working from the office daily is tiresome as we have to travel to workplaces in traffic thus investing time, which counts in reducing some of the work productivity of the employees. Also always working from home makes us  lazy as well as there is no physical collaboration with the team. A healthy team must have meetings and collaborations so that everyone is on the same page throughout. 

When thinking about Coworking and Hybrid work together, a corporate that is willing to switch to a Hybrid work model should opt for a coworking space at some prime location in the city they want to be in. Another alternative a firm or corporate can do is if the employees are from different cities and states and it will be very difficult for everyone to come to a certain location. Then that company can arrange coworking spaces for their employees in their particular cities so that they can work for particular days from that office spaces. This helps employees to have a perfect work-life balance and not get bored or do not face a workload. 

This collaboration of Hybrid and Coworking office spaces also helps companies to hire talent from different parts of the country, thus getting a great talent pool. 

One of the main reasons for companies to opt for a hybrid work model is that workers have the flexibility to schedule their work time as per their work needs and feasibility. This helps workers and companies to make the most of their professional time thus getting the most productive in overall work. Professionals hailing from different fields and backgrounds make a coworking space build a community and contacts which in turn helps to learn and collaborate with each other. 

In Conclusion,

We can see that a workplace revolution is taking place in today’s fast-moving world which only aims in extracting the best productivity from the workers and employees. This is been fostered by the Hybrid work model which is made to collaborate and go hand in hand with Coworking spaces, both of ‘em are making it a success and all the big as well as small businesses are switching themselves to this type of work model. Having all the office amenities, features as well as flexibilities a coworking space represent the optimal solution for the future of hybrid work.

Is Investing in coworking space a good opportunity worth considering? Definitely yes.

Coworking spaces are nowadays in a trend and this trend is going to further continue in the far future.  Coworking spaces offer a positive work environment that promotes the productivity of the professional occupants working under that roof. These types of office spaces host all types of work professionals hailing from different fields and backgrounds.

Additionally, coworking spaces offer more cost-effectiveness compared to traditional offices, thus making them a good investment for entrepreneurs and other businesses.

Coworking offers a shared work culture along with flexible as well as affordable options in comparison with normal traditional workspaces. All the occupiers in this workplace get dedicated desks, workstations, private and manager cabins along with many amenities such as reception, common area, cafeterias, lounge, pantry, etc. 

These spaces offer membership plans for occupants which are charged monthly or yearly because depends on the occupier. Some are individuals or small teams and some are organizations having large no of teams. It provides flexibility to all its members as compared to other spaces. 

Some of the benefits of owning and investing in coworking spaces are

1. Increase your rental income

Coworking spaces will often provide a high return on investment as compared to traditional office spaces. If you are an owner of a space instead of leasing your property for traditional offices, coworking spaces can be proved as a great source of rental income. 

Coworking spaces are becoming increasingly popular among the driving workforce nowadays as many freelancers and small businesses are switching to coworking culture. By renting coworking spaces you can attract many tenants  with increased charges thus increasing your rental income.  These workplaces provide higher flexibility and affordability, which can help tenants increase their productivity. 

2. Increase your property value

Coworking spaces can help you add more value to your property thus making it more appealing to potential tenants and buyers. This will help all your tenants create a sense of community, thus increasing the number of tenants and the property value. Mouth publicity and foot traffic will make your property more popular. 

3. A large range of Tenant

Coworking spaces can be more attractive for many tenants for coworking spaces than traditional office space. These spaces are increasingly getting popular day by day in recent times, as more professionals and organizations are switching to this culture of working.

There are many perks of using coworking spaces as they are more cost-effective and provide a flexible leasing option along with a good work-life balance thus increasing the productivity of employees as well as the organization.  

There are many freelancers and tech gigs who are in need of a proper workplace for their daily chores and are willing to adapt to coworking spaces. They can opt for a coworking for single seats as well as getting all the benefits and opportunities to collab with their coworkers. Small businesses, startups, and big firms are also recently using these workspaces for their operations to save and provide flexible options to their employees.   

4. Many options for leasing

Coworking spaces offer a wider range of leasing options compared to traditional office spaces, attracting a wide range of tenants. Nowadays many landlords and property owners are making their spaces available for coworking spaces and it is not surprising at all due to the higher market in this industry. 

Coworking spaces are cost-saving as they help businesses rent and lease the space and seats they need rather than paying for a traditional space and looking after its maintenance. 

These spaces offer flexible lease agreements that are not for long terms rather than getting locked in long-term agreements. Business can scale down their businesses or scale up according to their needs as they will have to pay for the space they use. 

All these properties of coworking spaces make it flexible to use and offer more and more leasing options for professionals.   

5. Gives a competitive edge to your space

Coworking spaces can give a competitive edge to your space by providing all the amenities to users in the first place to make your space/properties ahead. Coworking spaces can be a very good means to do so, giving you a headstart in the market.

As there are a variety of features and amenities they provide to their occupiers that can be a great point of attraction to all the folks in need of a place.  

In Conclusion:

There are many advantages of giving property for coworking spaces as they may help gain a headstart for a business and earn a good amount of capital thus helping a professional workforce perform with comfort with high productivity. This will also help gain more tenants with multiple leasing options thus getting a headstart in the market with a competitive edge.  

We have seen for decades that our parents and grandparents go to the offices and work there day and night, returning home and again back to the same schedule. This has been a common practice for decades and many of us have been following this in our decade as well. Has anyone thought about it whether working from the offices is really productive or not? Yes, it is productive as some of the work environment needs onsite employees and workers, but there are many such jobs and offices which do need their employees to be called at workplaces but still, they are going there. Is it really necessary to do so? No. What we need is productivity, if there is work productivity no matter where we are working, we can work at different workplaces with different people from different organizations.  

Not for a long time we are a part of the revolution, a revolution that is changing working habits, increasing productivity and collaboration with many organizations. Yes, this is a Co-Working model implemented in the near past, where people from different organizations and freelancing individuals are working together with much more productivity than before. But where this revolution began, and what is its History, let's see.

It all started back in 1995 in Berlin, Germany where a bunch of 17 Computer Engineers came together to work and named their place ‘Hackerspace’. The motive behind creating this space was just to share and explore all the equipment and facilities they had. It also increased collaboration with each other thus increasing knowledge, at that time that was it, no progress in such spaces. 

In 1999, Bernard DeKoven, an American game designer contributed the term ‘Co-working’. Apart from the name nothing was the same as it is today because his ideology regarding the term was different. For DeKoven, coworking was a term used to describe the idea of “working together as equals,” rather than “working together, yet separate” to remove the traditional hierarchical system. He wanted everyone to work together in game design and make it up to the final product without any grading. The same year that DeKoven brought to life the notion of coworking, 42West24 sprung onto the New York City scene. In 2002, two Austrian entrepreneurs set out to put an end to working from home and to create a space where like-minded people could gather to work and create in collaboration. The two converted an old factory into a new space for architects, consultants, freelancers, and startup owners. But rather than being known as a coworking space, it was, for years referred to as an ‘entrepreneur’s center.’

The actual story of coworking began in 2005, software engineer Brad Neuberg from San Fransico was the one who first officially launched a Coworking space. When Neuberg was going through tough financial times, he was working at a startup where he was feeling conflicted. He wanted to find a way to combine the independence and freedom of working by himself with the community feel and working with others. He worked and resulted in making a new type of space that delivered both the structure and community feel he wanted. He opened the space in San Fransisco itself. At first, the space was not a hit, no one showed up but after that, in a month or two it became a massive hit. People started showing interest in such spaces and since then the number of people investing and using these spaces increased. Studies show that since 2006, the number of coworking spaces has almost doubled per year, and demand continues to steadily grow since then. And in the years that followed, many big organizations started working with it and the rest is in front of us. Since then it has evolved and demand for such spaces is constantly increasing, and most existing spaces have plans in place for expansion. 

Growth in these spaces has continued so much that the number of coworking spaces worldwide is projected to reach a massive number in the coming years. With the upcoming emergence of the side hustle and the rise of flexible work options for many employees, it's no surprise that coworking spaces are expected to grow more and more over the coming years.

Working professionals from the beginning need to go to their workplaces for their work and relocate from different locations all over the country or the world. We nowadays also relocate or need to travel distances to reach our workplaces. All these traditional office spaces are not so happening nowadays, we have to come to the same offices daily, the same people around and much less flexibility offered there. These traditional working spaces are not at par in this fast-moving world as everyone needs aesthetics as well as good ergonomics for better comfort to increase productivity and work-life balance.

To tackle all these challenges in 2005, software engineer Brad Neuberg from San Fransico was the one who first officially launched a Coworking space. He wanted to find a way to combine the independence and freedom of working by himself with the community feel and working with others.

Coworking is a collaborative work practice in which individuals work independently or in collaboration with others in shared office spaces. These spaces are also used by organizations that provide spaces for their employees in shared offices with equipment and all the other services in need. A normal and typical coworking space includes many features and amenities such as shared office spaces with 24/7 access and all the other amenities like desks, systems, printers, strong WiFi, a shared pantry, and lounge areas. These are also offered with meeting rooms, storage areas, etc. with Parking being one of the topmost requirements. Perfectly managed by dedicated staff these spaces are readily available for each type of professional hassle-free. 

There is a drastic change in the Working environment nowadays, these shared and coworking spaces are attracting a large number of individuals and other organizations. Startup owners and small organizations have got a platform to work on and are getting highly inspired. They can afford it easily and also can work with and collaborate with other people in such spaces thus building a strong community within a diverse environment. 

Due to incurring of the High costs of real estate; entrepreneurs, startup owners, and freelancers are getting attracted to these kinds of spaces nationwide. The startup ecosystem in India is getting promoted here without any doubt. The Indian government is also promoting startup culture thus supporting coworking and shared spaces. Apart from this, Young entrepreneurs are getting opportunities to work collaborate, learn, grow networks, and learn for a lifetime. Through workshops, collaborations, meetings, networking events, etc coworking spaces act as a center for entrepreneurs and businesses to grow and succeed. 

The office space culture in India today is going through a revolution like working in shared and coworking spaces. These spaces and adopted working culture have changed the way we look at offices now. Unlike old traditional offices, coworking spaces are not just limited to the walls of a company. Instead, they allow you to learn and collaborate with others effectively. It is a cost-effective method where any individual or organization gets their desired workplace with ease and without spending too much. It provides and nurtures a vibrant office environment which in turn increases productivity with satisfaction. 

As of now, coworking space is a young concept in India that is getting nurtured and growing at a fast pace. It is getting into trend slowly as many people are leaning towards it. Having it much more evolved in the past 2 to 3 years, during and post covid these properties are growing in numbers. Providing much more amenities in a work environment in a hassle-free manner. Besides all the amenities and features provided, these spaces are also popularly known for low cost, flexibility, and logistically ease to have.

Coworking is one of the most trending concepts evolving and gaining the attention of young entrepreneurs and startups for stepping out of traditional office work practices and moving to flexibility. India has now nearly more than 1500 coworking spaces, data from a recent report showed. This number of spaces is going to increase in the near future making coworking spaces the only feasible option for all professionals making it a future in the office space environment. 

Commercial properties take up a majority of the occupying share in terms of monetary value in the Indian Real Estate Sector. Buying versus Leasing commercial property is a crucial decision that many business needs to make. The same way as there are two sides to a coin there is no concrete or a simple solution to this answer. There are parameters to choose from and today Brantford India will guide you to whether leasing or buying which one suits your spectrum in the best way possible so you can take the right course of action for your business.

Laying out the possibilities of choosing the Right Real Estate Path

Whether you opt in for buying or leasing, Real Estate will be a hefty expense for your business. It is going to affect your cash flow, stability and long-term prospects all while having tax impacts. In order to be more economically sound, it is worth spending some time to consider which the best path is for you.

The Pros of Buying a Commercial Property

Buying a commercial property can be one of the best decisions to make in many cases. You have complete control and authority of the property because you won’t have a landlord. However, most businesses or organizations choose not to purchase their real estate outright. They also have the option of using a loan to spread out the cost.

•         Asset Building in terms of Gaining Equity: As time passes by and you gradually pay off the loan your equity will increase in the commercial property. The assets on your balance sheet will also see a positive output. The potential equity can be used as collateral in the future for other business needs.
•         Finite Number of Payments: Buying can be an attractive option in terms of long-term cash flow. Financial security being one of the best reasons to buy a commercial property.
•         Greater Control: A landlord isn’t going to question you to every modification you make when you own the building. As long as you afford the building you are in charge of the property and completely in control of it. The rent wont escalate every year and you can’t be asked to vacate.
•         A Rental Income Possibility: A part of the property can be leased to other tenants.
•         Deductible Depreciation and Interest: There are noticeable tax benefits to buying, one can always deduct expenses if relevant such as interest and depreciation.
•         Asset Appreciation: Over time Real Estate appreciates in value. By any means this is not guaranteed. There comes a time when you end up owning an asset that is significantly more valuable that it was when you purchased it.

The pros of Leasing Commercial Property

In many scenarios Leasing is the way to go. In general, it is a flexible option than buying. The following are a few of the advantages of leasing a commercial property:

•         More Flexibility: You are not responsible of the property for years together when you are leasing a space. A loan could have a term of more than 10 years or more buy when you lease a property it can last for 5 years or less and you always have the option of breaking your lease if necessary.
•         Upfront Costs Reduced: Leased spaces usually ask for a few months of security deposit to make up for the renovation of the space or for setting it up.
•         Tax Benefits: Leases do come with tax benefits. Typically, the entire lease payment can be deducted as it comes off as an expense.
•         Shared expenses with the Landlord: Repairs and maintenance are taken care of by the landlord. The common areas are usually covered under this which then helps you keep your budgeting simple.

        Fixed, Monthly Payments: One single invoice to be paid to the landlord or the property owner. Utilities and other variables are set apart.

Coworking has emerged as one of the fastest growing sectors in every faucet of every economy. Growth
of an economy as we know has many streamlines attached to it; it can be the booming IT, real estate or
Edutech sector or it can be the result of a successful idea or innovation. How does coworking in this
fashion contribute to the limelight of an economy? Let us take a closer look on how coworking enables
start-ups to reach for the stars or how managed office spaces sets up SME’s and MNC’s for a stable and
steady expansion.
Working at a coworking space can be more fulfilling than it is at a traditional workplace. Unlike a
traditional office, coworkers at coworking spaces come from different industries; they are finding their
own niche in the world and are working on projects or simply to advance their careers. Working
alongside forward-thinking companies and people offers many such benefits such as increased
professional development and satisfaction.
Coworking spaces are usually open 24/7, so you have more job control. You can decide whether or not
to put in a long day when you have a deadline or want to show progress, or if you want to take a long
break in the middle of the day for a powernap. You can even decide if you want to work in a quiet space
where you can focus without interruption or if you would rather work in an open collaborative space
where interaction is encouraged.
Every Coworking space has its own culture and environment that it caters to, it may be a communal
space that is freelancer friendly or an environment that is professional and sets the tone for privacy by
having closed cabins on either side of its hallway. Every Coworking space has something for its users;
some users may like to be independent so they opt for private cabins, some users want to interact with
their environment so they opt for open workspaces hence they have the freedom to discuss ideas and
engage with others freely.
When a space is as flexible as a coworking space and something that caters to the needs of the ordinary
at the grass root level it is bound to succeed in its mission for growth and development. Building up a
communal space in a prime location is not an easy task to achieve and coworking solves many of the
outlining issues of the 22 nd century, hybrid work is made possible by coworking spaces situated closer to
neighbourhoods. The onset of the pandemic shifted the way we work and coworking has to be
attributed to its development.