Real Estate: Co-living Spaces - How this trend is fast catching up in Indian realty sector | Expert decodes

Real Estate: Co-living space has been pacing up as an interesting concept in the organized category of the rental segment in the real estate market. This segment was picking up quite strongly until the COVID-19 induced pandemic struck and hit the sector hard. There have been numerous players betting big in the co-living space and now that the pandemic has receded, and green shoots of revival are being witnessed. Ashish Narain Agarwal, Founder & CEO, PropertyPistol.com, shares his knowledge on co-living spaces and how this trend is fast catching up in Indian realty sector.

"The concept of co-living started gaining popularity in the early 2000s and it was a healthy alternative to traditional set-ups like dormitories, rented apartments or paying guest houses. A greater preference for staying away from families and earning better packages had taken the working professionals and even millennials by storm and more and more of them opted for shared spaces that were available at a better rate, safe accommodation, and ample facilities and amenities. It became a hallmark of convenience, safety and affordability, especially in metro cities as it meant staying in an expensive location in a cost-effective manner neither shelling out for monthly EMI’s nor paying heavy rents," Ashish Narain Agarwal said.

"In the post-pandemic world, the co-living space has been witnessing a greater pick-up and there are statistics claiming that this market is expected to double by 2024. As several companies have adapted to work from home or are working in the hybrid model, co-living spaces sum up as a preferred option. In order to attract and retain the interest of the customers, the brands in this segment are ensuring no stone unturned when it comes to quality and experience. Premium hospitality, prime location in terms of accessibility and connectivity, good housekeeping facilities, uninterrupted power supply, ample ventilation and lights, social life, pet-friendly spaces, affordability and amenities like cafeterias, lounges, etc. are just some aspects that are being considered by players in this category," Agarwal said.

"With India having over 400 million millennials and considered to be the youngest country in the world, we can easily understand that co-living space has a tremendous scope in the country. This segment of the population prefers to have flexibility when it comes to relocating, especially for jobs or education. With practically no restrictions attached, a co-living space seems to be the most appropriate alternative for youngsters. Tagged along with other lucrative offerings mentioned above, this segment seems to be booming at a steadfast rate," he added.

"Apart from larger cities, the demand for shared spaces has also been triggered in tier 2 and 3 markets. The transformation can be attributed to y-o-y population growth, employment generation, enhanced standard of living, and socio-economic changes in the location. The entry of big commercial brands, retail chains, and developers in the area, has boosted the real estate sector further giving great scope to the co-living spaces," he further explained.

"According to home ownership data, approximately 40% of existing house stock in large cities is a part of the rental market and 28% of the urban households stay in rental housing. Interestingly, the report also highlighted that the young working professionals avoid big purchases like homes at the beginning of their career and look to use their disposable income for more experiential and community-led choices. According to the reports that were published in the last two years, co-living spaces can be a rage in the coming years. Most start-ups, hospitality, and realty brands have been investing in co-living spaces as the future seems bright. The co-living pattern is not just about space but an efficient model for the inhabitant combining comfort and value for money thus driving and promoting a fresh concept for the real estate sector," he concluded.

(Disclaimer: The views/suggestions/advice expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)