Growth in the co-living sector.
Co-living market size across India’s top 30 cities is expected to grow more than double by 2025 to $13.92 billion from current $ 6.67 billion. The demand for co-living in terms of beds is slated to grow to 5.7 million from 4.19 million, while the share of private beds is likely to rise from 15% to 30% of total demand in the co-living segment.
This segment of the population aged between 18-35 years, who are considered to be ‘urban migrants’, are those whose career or lifestyle choices require them to be on the move, unwilling to put down roots in a particular city.
While, traditionally, such needs have been met by cheap informal rental accommodation in the form of dorms, paying-guest (PG) arrangements and hostels, the informal nature of the set-up tends to heavily favour landlords. Being informal, these set-ups are not governed by local or state-level regulations; and tenants, usually, end up facing difficulties. This has given an opportunity for operators of co-living spaces to step in and flourish in a nascent market.
Co-living in India, has been popularised by the rise of housing start-ups offering affordable housing in homes or apartments, where common facilities are shared between room-mates. Although the concept of community living or living in a community has been around for generations, housing start-ups have managed to adapt the concept with innovative technology, catering directly to the specific needs of the younger generation.
Such co-living spaces can take many forms, encompassing everything from single-family homes renovated to accommodate tenants, or apartments in a high-rise buildings that have been converted into dormitory-style lodging. Residing in such homes allows one to have flexible lease terms, either short-term or long-term, with additional facilities like cleaning services, professionally furnished common areas, amenities, and utilities all being part of the package
Benefits of co-living
Affordability
Due to the expensive housing situation, the cost of buying your own place is often out of reach, especially for newer generations. Because of this, millennials who are just starting to get into the housing market are shifting to become renters instead of owners.
When you factor in the cost of buying new furniture, kitchen supplies, and utility fees, renting a new apartment on your own can take a hit on your finances. In a co-living space, rent is often lower and comes with a fully-furnished layout. In addition, perks such as cleaning services, room maintenance, and utilities are usually included. This means that you don’t need to buy your own couch, TV, or Wi-Fi router when moving in.
Flexibility & Convenience
One of the main benefits of a community living complex is flexibility. The rapid rise of digital nomads and remote working has contributed to the number of young professionals who tend to opt for short-term or flexible leases. If you’re not certain about committing to a long-term lease and buying furniture, co-living offers the perfect alternative.
Sense of Community
For younger generations, the definition of home has slowly shifted away from a place of long-term permanence. Instead, they are seeking a new meaning of ‘life’ and ‘living’, looking for a place of comfort, affordability, and a sense of community. Especially when you’re moving to a brand-new city, either for work or through the digital nomad life, making friends as an adult can be challenging. A co-living complex tends to solve this issue by offering built-in communal facilities and events that cultivate an environment that is ideal for open-minded people who are also looking to meet new people.
