The international market for co-living is growing at a rate of approximately 30% y-o-y, with the trend catching up in major economic centres. In the last 10 years, communities and industry bodies that list occupancies for co-living have shown a threefold growth in listings. Globally, the co-living sector has become an asset class comparable to multi—family accommodation within the same age-group as standard amenities, communal living and comparably lower costs appeal to the sensibilities of the millennial generation.
Within India, the co-living model is currently catering to mostly millennials comprising single, young working professionals and student population due to an overlap with the latter segment in terms of target audience. The current lifestyle of millennials demands proximity to city centers, availability of communal spaces and the desire for shared amenities for reduced tariffs and a collaborative, experience-led lifestyle. Additionally married couples may also be interested in multi-family living concepts, given these concepts are introduced in India in the future. Presently, some models with single working population and married couples in an integrated co-living set up are being practiced in Europe and America. Although smaller in proportion of demand, it can steer the outlook and operating model of rental units to newer built-to-suit models. Furthermore, as the business evolves, co-living could prove to be a disruptive force for demand for rental housing from migrant families.
Thus, co-living as a concept is expected to expand its user base within the given age demographic. The service offerings are also going to be more standardised and will keep evolving based on a continuous user feedback mechanism. This is good news, because it suggests growth and innovation in a nascent market that shall allow it to leapfrog many growth milestones within a short duration.
Source: Cushman & Wakefield