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Co-living is a kind of community housing arrangement, where like-minded people stay together and share their accommodations. After co-working co-living is the latest concept getting widely spread across the country.
Because of interests from the millennial i.e the younger generation in the age group of 20-30 years and living more independently in India so, there is room for the coliving space companies to get flourish.
As in 2019 various Coliving start-ups have come up with their models and they started with the business activities and getting great responses from the younger college going students to corporate professionals.
As of now, there are around 25 plus co-living space start-ups and companies exists in India. You can find here the list of the co-living companies in India
According to the Proptiger and Knight Frank reports, in India the co-living market potential worth $93 billion per year.
Co-living is a type of intentional community providing shared housing for people with shared intentions. This may simply be coming together for activities such as meals and discussion in the common living areas, yet may extend to shared workspace and collective endeavors such as living more sustainably.
As we define it, living is a modern form of housing where residents share living space and a set of interests, values, and/or intentions. It’s a new take on an old idea, imagined by a millennial generation that values things like openness and collaboration, social networking, and the sharing economy.
What Is Co-Living?
Fundamentally, co-living is a cultural distinction, as it can encompass many structural forms, including rental and ownership, urban and rural. Still, in its current embodiment, co-living tends to be urban and integrated into a single building, house, or apartment. And the demographics tend towards 20 and 30 something professionals more than families, boomers, and retirees.
Residents of co-living spaces come from all walks of life and range in age from the 20-something to the retiree. However, they’ll typically include hardworking professionals, entrepreneurs, creatives, and artists who seek an environment where they can be empowered and inspired.
Co-living encourages sustainable lifestyles by making it easy to share resources. It’s a great strategy for changing your routine if you’re tired of the usual 9 to 5 work schedule, you crave more face-to-face interaction, or you simply want more out of daily life.
Types of millennials that Co-Living space Suitable for;
- The student pursuing higher education in non-native cities
- Digital Nomads
- Freelancers and people working on short term contracts
- Single women
- Young working Professionals
Why you should consider going For a Co-living Space
Co-living is all about community, convenience, and cohabitation. With millennials and young professionals continuing to flock to highly populated, high-priced metropolitan areas, the demand for affordable, convenient living options keeps increasing. Although each co-living company’s business model differs, co-living most often involves individuals renting a private room within a shared apartment.
Following are some reasons which explain, why you should consider going for a Co-living Space?
Ease of living
If there ever was ease of living ranking among real estate offerings, co-living would, undoubtedly, top the list. Especially for urban millennials, who move jobs (and homes) every 20 months or so. The whole process of relocating to a new place becomes easier than opening a bank account, when furnishings, kitchen utilities, and maintenance services are taken care of.
Budget or Cost of Living
Most young professionals simply cannot afford to buy a house in the city. So, renting becomes the only option. If you choose to live in a co-living space, the utilities are no longer your responsibility. Don’t worry about paying the electricity bill or going over your monthly internet gigs. It’s all taken care of.
There’s only so much that you can remember and the water bill should not be on that list. most of the co-living have different plans — based on internet usage, TV watching and gas consumption – the takers can choose from.
Sense of community
Millennials are often perceived as lone rangers in pursuit of their own paths. As free as birds, they explore new horizons, evidently in no hurry ‘to settle down’. However, the journey can often get lonely. Studies suggest that more than 40 percent of millennials suffer from chronic loneliness.
“Imagine you’re a graphic designer and there’s a coder in one room, an investment banker in the second and your roommate is a videographer. The possibilities of what you could create at the comfort of your workspace within your living space are endless” says Sait. The ironic part is people are oblivious to the existence of this new way of living.
Residential safety is more than just having a security guard. It’s about a sense of wellbeing that space exudes. When you opt for a co-living space, you can be sure about 24-hour security, CCTV surveillance, access card entry, background verification and screening process of the staff as well as residents. This niche realty segment is a lot more organized and transparent than PG accommodations and renting options, making it a safer choice for millennials in a new city.
The concept of community living is not actually new. What’s new is that, unlike in the past, millennials are drawn together by lifestyle choices and not so much by religious affiliations or other considerations. Youngsters prefer residential spaces that are more flexible and social. Home is where the fun is!
Free Of Landlords
co-living opens up when it comes to meeting new people, said that diversity is what makes co-living an exciting experience and their residents don’t want to leave once they experience the perks of living away from snooty landlords.
He says, “Everything happens on the CoHo mobile app, we don’t need to constantly be breathing down our tenants’ necks like traditional landlords”.
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Health & Fitness
Hermosa Muer, a part of CoLive.in, in Bengaluru is a women’s only co-living space that offers a gymnasium, swimming pool, Zumba dance classes, self-defense, and safety training and an exclusive female fitness trainer. All other co-living spaces offer similar fitness infrastructure so traveling for your health is a thing of the past
Finding your place in the world
For people who can’t afford to buy or rent real estate on their own, who wish to see the world, or who just aren’t quite ready to settle down in a single place, co-living offers an incredible opportunity to find fulfillment. As one of the top networks of co-living spaces around the world, Roam is designed for a variety of people with unique needs.
Privacy when you need it
Even the most outgoing people sometimes need a little time alone, and with co-living spaces, you can certainly have the best of both. So, even though co-living fosters a sense of community and of being around others and collaborating with them, you can still enjoy some much-needed quiet time.
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Co-Living Space Market Size in India
- The co-living market potential worth $93 billion per year In India
- After decent growth of co-working segment in last few years, it’s now co-living space which is creating a buzz in India and has potential to become USD 93 billion markets annually on rising demand from students and professionals, according to a study.
- Over 50 percent people in the age group of 18-35 years are willing to rent co-living spaces and pay up to Rs 15,000 a month in top Indian cities including Delhi NCR, Mumbai, and Bengaluru, according to a survey by Knight Frank in 2018
- A RedSeer analysis based on the size of the population of millennials in the urban workforce says the industry, which has an addressable market of 10 million customers, is not winner-takes-all and has plenty of room for many players to grow and reach a sizeable scale.
- In India, the undersupply of student accommodation, coupled with the market size, are a huge draw for developers and start-ups.
- Institutional investors and venture capital firms have found their way to the country, with the likes of Goldman Sachs and Warburg Pincus investing in the sector.
- Warburg has set up a joint venture with Lemon Tree and will invest Rs 3,000 crore to develop full-service accommodation for students and young working professionals.
- In August 2018, HDFC picked up a 25 percent stake in Good Host Spaces Pvt. Ltd, which offers student housing facilities under the brand name NewDoor (previously Yoho), for Rs 69.5 crore.
- The Big players in the sector are Nestwaway, ZOLO Stays, OYO Living, CoHo, among others.
- Among the existing players in the segment are RentMyStay, Rentroomi, SimplyGuest and Flathood, Stanza Living, Zolo, Placio and CoLive have recently entered this sector and raised funds to spread the business.
- According to a PropTiger report that came out in February 2019, the report found out that the co-living sector has total untapped demand of about 46.3 million beds, out of which 8.9 million is from student housing.
- Total occupancy recorded in hostels within college campuses across India was only 3.4 million students, leading to a demand-supply mismatch of 8.9 million students. This deficit for co-living spaces is currently being met by the unorganized sector, which includes PG accommodation and rental houses, etc.
- News Corp and PropTiger has termed the co-living space as “real estate goldmine” that remains largely untapped
- The supply by organized players in co-living is currently limited to over one lakh beds. Assuming they earn ₹1.44 lakh per annum per bed, organized players in this segment are currently USD 206 million).
- If the existing demand-supply mismatch is fixed, this segment has the potential to grow into a USD 93-billion market,” PropTiger said in a report.
- Entrepreneurs in India are launching co-living portals and tying-up with real estate developers to build project specifically meant for the co-living segment, especially for students and working professional.
- Packed with modern amenities, these spaces are designed keeping in mind the needs of the targeted segment.
- Co-living space meant for students are generally equipped with basic facilities such as housekeeping, laundry services, security, and meals, apart from additional facilities such as gaming consoles, libraries, gyms, pools and high-speed Wi-Fi.
- Lately, OYO Living has also entered the segment, with more than 2,000 beds in Noida, Gurugram, Bengaluru, and Pune, the Proptiger report said.
- “Rental yield in this segment is higher as compared to traditional ways of renting a property,” the study said.
- Citing an example, it said that property for students in Sector 125, Noida, is expected to give about 8–9 percent rental yield whereas housing for professionals is expected to provide 5–7 percent rental yield.
- Investors also get a tax rebate on housing loan if they take a loan for buying a residential property. The investor can enjoy the benefit of a tax rebate, along with rental income, something not possible in case of commercial property
- The supply by organized players in co-living is currently limited to over one lakh beds. Assuming they earn ₹1.44 lakh per annum per bed, organized players in this segment are currently generating a combined ₹1,440 crore ($206 million)
- Most of the projected demand comes from students studying in different colleges and single working professionals across the county.
- In India, there are about 50,000 colleges where over 31 million students study. Out of this, over 12.3 million students are migrants.
- Uttar Pradesh has the highest demand (nearly 19%), followed by 13% demand in Maharashtra. The southern States, Tamil Nadu, Karnataka, and Telangana, have the combined demand of 16%, the report said.
- These numbers indicate that developers, who are focusing only on commercial office spaces to expand their rent-generating portfolio, need to seriously think about building spaces for co-living,” the report added.
- With a substantial increase in the number of young professionals who move to new cities for work, the concept of community living is attracting takers.
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Co-living is a new trend that has hit the Indian metropolitan cities. When you move halfway across the country, to places with no solid support system — friends or family — you no longer have to worry about buying yourself a refrigerator or setting up an internet connection or even being lonely. Co-living will be there to take care of all your homely needs.
In India, the co-living concept is gaining widespread acceptance and has brought to the front some new models in the private rental sector. Though the concept is novel, it’s here to stay, as India’s millennial population currently accounts for 440 million.
The growing interest for co-living spaces in cities such as Bengaluru, the National Capital Region (NCR) and Pune for the real estate investment community, the co-living is a hot topic of discussion, with developers and value investors reassessing the way they view apartment offerings.