With increasingly swelling number of millennials along with ever increasing housing cost, the co-living segment in India is expected to grow by leaps and bound in the coming years. As per a recent report, the current market size for co-living spaces is set to grow more than double by rowing from $6.67 billion to $13.92 billion across top 30 cities.
Cushman and Wakefield India released a report titled Co-living- Redefining Urban Rental Living, which states that co-living market in India is evolving at a rapid pace with investments from national and international institutional investors. The funding is bringing in much-needed seed capital, thereby allowing a new business model to thrive and aim for achieving scale.
The co-living market has also been showing lots of promise for the coming times. The demand for co-living spaces in terms of the number of beds is slated to grow from to 5.7 million, up from 4.19 million. The share of private beds shall rise from 15 percent to 30 percent of the total demand in the co-living segment.
The basic model seen in this segment is of co-living operators tying up with developers for built-to-suit property options. Operators usually zero in on ready-to-move-in properties having at least 50-60 rooms that are refurbished and renovated as per their requirements.
In India, co-living model is currently aimed to provide housing to mostly millennials comprising single, young working professionals and student population who have to deal with unorganized set-ups, (PGs/ dorms/hostels) due to lack of college run spaces.
The co-living segment is increasingly finding a sweet spot among economically independent millennials who have higher disposable incomes and are even ready to spend a little more to enjoy better lifestyle standards, the report said. Going forward, this segment is expected to change the face of rental housing in the top cities.
“Furthermore, as the business evolves, co-living shall transform the face of the rental housing market in urban centres, similar to what we are witnessing with flex-working in the office rental space,” said Anshul Jain, Country Head and Managing Director -India, Cushman and Wakefield, Money Control reported.
Here is more on co-living segment.