Co-living spaces are set to be the next big thing in the Indian real estate sector. As per a recent survey, seventy-two per cent of millennials (belonging to the age group of 18-23 years) have given co-living spaces a thumbs-up and over 55 per cent of the respondents in the age group of 18-35 years are willing to rent co-living spaces.
The survey was undertaken by international property consultancy Knight Frank India across the top cities, including Mumbai, Bengaluru, Pune, Hyderabad and NCR and received responses from a cross-section of people, between the ages of 18-40 years. The conclusion and derivation are published in a report titled ‘Co-Living – rent a lifestyle.’
Key highlights of the survey are as follows:
- Of the total Millennials surveyed, 56 per cent were willing to consider co-living spaces for their accommodation requirements.
- 37 per cent of private working professionals and 45 per cent of student respondents surveyed, were willing to spend between Rs 10,000 and Rs 15,000 on monthly rentals.
- People in 18-23 bracket were found to be more eager towards co-living spaces with 72 per cent were willing to consider it as an option for accommodation. On the other hand, the enthusiasm seems to decline in the next bracket as only 56 percent of people in 24-29 showed interest in this model.
- The sweet spot for rental homes seems to be at Rs 1.2-1.8 lakhs a year.
- Most of the millennials gave priority to proximity to work and social infrastructure while zeroing down on a co-living space as a contrast to 5 percent who gave priority to rental costs.
No wonder with a population where there are 400 million Millennials, who account for a one-third of India’s population and form 46% of its workforce, co-living space has a huge potential to grow. Here is an illustration to show the types of people co-living caters to:
Since co-living as an asset class in still evolving, many new players are expected to venture into this segment. Click here for complete Knight Frank report.
