Co-living, a global trend, is slowly gaining a foothold in India. It has already gained much traction in the US, China and the UK.
Young professionals in the age group of 20-40 often find it a waste of money and resources to rent a complete apartment space as they often tend to spend little time there, given the long work hours. Here, the co-living strategy acts as a saviour as it is both economical and functional. This realisation has made the players in the real estate industry optimally use the assets as per the demand of the young renters.
The below mentioned points explain how co-living is proving to be a game-changer in the real estate industry.
- With the increasing house rents and a limited income, people moving to the new cities are finding it difficult to get a suitable accommodation that meets their budget needs. The co-living concept is very attractive for both investors and builders as it is creating a whole new category of 'shared rentals as an asset class' altogether.
- Millennials often subscribe to a sharing economy and a co-living space offers that. This trend is making the real estate investors rethink the age-old idea of finding a single tenant and develop the asset in a way that makes it fit for co-living.
- The young generation looks for options that not only provide affordability but also help build a social life and engagement with others. This is a key aspect of what co-living offers and real estate players have been quick to realise this.
- Real estate investment includes services like library, gym, swimming pools etc. which attract the millennials. The availability of these facilities attracts the millennial, giving a ROI.
- The increasing demand for co-living spaces is changing the real estate industry in the Tier II and Tier III cities. With a growing space crunch in the Tier I cities, people are opting for co-living options in the less populated cities giving the developers and investors an option to invest in the assets of these cities.
- Structural design of real estate has not developed in quite a while. But, with the growing demand for co-living spaces, the developers and investors are investing in the structural and functional design of the asset, making it viable for co-living which is, in turn, giving a different dimension to real estate. Investors now try and think of options that make these residential assets a perfect balance of both private and communal affair as needed for shared living.
- Millennials opt for flexible check-in and check-out options, curtailing the traditional leasing procedures of the real estate.
Inflated house-rents is one of the primary reasons that is driving the young generation to opt for co-living. Also, the facilities and services provided in a co-living space are attractive and convenient for the young generation. Thus, for a better lifestyle in an expensive city, the millennials are looking towards co-living properties. The real estate industry has realised this growing trend and is hence considering the changes in order to use its assets in the most advantageous way.