The pandemic has shaped our lives with completely different needs. A human, being a social being, was confined to their homes with the least interaction to curb the Covid outbreak. But this social constraint has paved the way for a new lifestyle of ‘Co-Living’. Co-living allows people to have a shared motive to live together as a community in a new-age rental space. With separate rooms for personal space and common interactive spaces for social and community activities, Co-living blends a perfect mix of personal and social space with a common goal like employment, university, and so on.
This modern culture of the West is slowly being accepted in India. But the skepticism behind the sustenance of Commercial Co-living spaces is increasing and investors fear the future of Co-living in Indian Commercial Real Estate. In this article, we aim to tackle the fear of CRE investors by exploring the prospects of Co-living as a Commercial Real Estate in a post-pandemic India.
The Rent Vs Salary Battle
The pandemic has caused great financial trouble for many in our country with the highest number of employee layoffs, business shutdowns, and so on. This has pinched our monthly salary or income along with additional costs to bear like Internet connectivity and high electricity bills. While this being the scenario, landlords have also hiked the rent. Thus, millennials are posed with a serious question, “How to survive this disparity between lower salary and higher rent?”
The best answer to the above question is ‘Co-Living’. Having the capability of solving the problem of High Rentals, Co-living offers an affordable renting solution with cost optimization of housing amenities. The basic cost of Co-living bed space is more than 50% lower than the standard rent in a locality. Along with that, Co-Living requires least or almost no deposits. Thus, no more blocking of your valuable funds.
Along with private bed space, the tenants enjoy shared access to daily necessary amenities like laundry, kitchen, dining, entertainment, wifi, and much more. This ensures further cost-cutting for the overall monthly accommodation expenses. Thus, with no additional costs to incur, the millennial generation facing pay-cuts can easily adapt and save money than paying unnecessary higher rentals.
New Remote Lifestyle
Since a considerable part of Indians is working remotely, the social connections and interactions have gone amiss from their lives. Our life’s existence works through maintaining the right balance. And thus, missing out on an important component of our lifestyle can be harmful in the long run with depression, social anxiety, isolation, and so on cropping up frequently. Thus, as humans, we long for our family, friends, and colleagues to spend endearing and fun moments that maintain the balance of otherwise hectic work life.
However, the pandemic has made it difficult to juggle between our professional and personal life, and enjoying the perks of happening city life seems an impossible task in Covid. Perhaps in this post-pandemic life, Co-living is the right choice for remote workers in IT, software, finance, and companies in other WFH domains. The Co-living lifestyle allows ‘flexible stays’ in a place you can deeply connect with and have always dreamt of spending your life. But at the same time, you can work as a professional either staying away from your office or even with your colleagues in the Co-living ecosystem near your office. Moreover, Co-living offers a complete lifestyle solution with parties, conferences, and social gatherings all within the premises of the ecosystem. This also ensures a bio bubble to keep Covid at bay.
Thus, the Co-living arrangement fulfills five objectives with just one solution. They are:
- A great company of people
- Connect with the city of your dreams
- Work anywhere from the world
- Enjoy the perfect mix of work, leisure, and comfort!
- Social Distancing with Health first
No more boring remote life! Lead a happening life with Co-living communities!
The current Millennial generation is quite experimental with their lifestyle, habitats, foods, and much more. This excitement is also reflected in their ‘Housing Plans’. Doing away with the Baby Boomers’ age-old philosophy of “Owning a House to settle down in life”, the current trend depicts more inclination towards Rental Housing. People are wanting to explore different places and not just settle down in one city for years. Also, people, these days are very much aware of maintaining their financial balance and sensibly avoid getting into any debt trap for the sake of buying a comforting ‘House’.
As again replicating the trend of the west, the gradual shift towards Rental Housing gives Co-Living an added advantage in a post-pandemic world. The flexible rental offerings with negligible deposits are capturing the attention of the young generation. With services like Third-party maintenance and Regular Room Cleaning, a lot of monthly costs and hard work is saved for the tenants which ensures more time towards living their passion. This idea is striking a chord with Millennials on a larger scale.
So here’s a deal of expenses you can save with Co-living :
- Leverage Cost for Owning a House
- Daily maintenance of the property
- Deposit Cost for Renting
- Free facilities like Water, Electricity, Wifi and much more.
To sum it up for the CRE investors, India is witnessing a fast-forwarded cultural shift. The Co-living concept is the best upgrade to traditional rentals and PGs. Offering all-in-one amenities, the Co-living is successful in trending amongst the country’s future – The Youth. This paradigm shift is visible in top cities of India like Hyderabad, Bangalore, Delhi – NCR, Mumbai, and so on where Co-living Ecosystems are already functional and attracting a larger customer base.
Investing in Co-living spaces is investing in the Future of the country. These commercial spaces offer attractive rental yields and hold high prospects of capital appreciation. But you must be thinking, who will manage the business. Well, we have a solution for this. Assetmonk, a leading fractional ownership real estate platform, is offering you a first-in-hand opportunity to invest in a Co-living Ecosystem “The Landing” in the premises of GMR Hyderabad Airport SEZ. You as a retail investor can invest in fractional ownership of this pre-leased Co-living Ecosystem managed by the experts in the business. Earn regular rental income with a profit-sharing avenue from the 12th year! To know more, check out Assetmonk and Get Started with our experts!
Co-living Space Investment FAQ's:
The impact of COVID-19 has been positive in the growth of Co-living spaces due to shifts in the lifestyle of the people and more focus on all-in-one community living. Moreover, the rental cost advantage as well as having a social life within the comfort of the community gives Co-living an edge over traditional rental housing.
Yes, as Coronavirus is forcing people to confine within their homes and maintain social distancing, people are feeling secluded with minimum social interaction. Thus, a complete community living concept is on the rise and which will possibly lead to rising in Co-living rentals in a span of the next 5 years.
Co-living in a post-pandemic world would change the face of rental housing in India. With modern facilities like food courts, entertainment zones, party houses, and many more amenities, Co-living would attract the millennial generation and the gradual shift of the working class population would inch towards these spaces.