The concept of community living is gaining popularity as the number of young professionals moving to new cities for work grows. Co-living is a relatively new trend in India’s metropolises. You don’t have to worry about buying a refrigerator, setting up an internet connection, or even being lonely when you move halfway across the country to a location with no established support system-friends or family-thanks to co-living spaces.
As of 2021, several co-living start-ups have developed their ideas and launched operations, with a positive response from everyone from younger college students to corporate leaders. There are about 25 co-living space start-ups and companies in India right now. Let’s delve a little deeper into it to discover more about it.
Important Facts about Indian Co-living facilities
Co-living is a cultural differentiation that spans a wide range of structural forms, such as renting and ownership, as well as urban and rural life. Coliving is still primarily urban and confined to a single structure, house, or apartment in its current form. Furthermore, young employees in their twenties and thirties outnumber families, baby boomers, and retirees in terms of demography. Residents of coliving spaces range in age from their twenties to their seventies, and they come from all walks of life. Hardworking professionals, entrepreneurs, creatives, and artists looking for a friendly and stimulating workplace are likely to be among them.
Some features of co-living which attract investors include:
- Convenience of living
- Personal preferences
- Landlord-Free Zone
Co-living as India’s Most Affordable Housing Solution
India has been battling a land shortage for years as the country’s growing population outnumbers available residential space. The demand for personal space is growing, yet the resources available to meet it are limited. Furthermore, in job-creating areas such as Mumbai, Hyderabad, Bengaluru, and others, few people can afford to own a home. Co-living can turn this crisis into an opportunity in this regard. The affordable housing segment may certainly benefit from this expanding trend, as many economic zones and CBDs, as well as private enterprises in the tech and distribution industries, are interested in implementing this concept. Tenants in traditional rental housing were subjected to numerous limitations. Here’s how co-living overcomes obstacles:
- Shared Ecosystem
- Brings Work closer to People
- Flexible Renting Options
- Access to High-end Amenities
- Cost-Sharing with Common Daily Activities
- Socializing and Interactive Events
Co-living is the ideal option for the working millennials
The rising migration of young renters to new locations in pursuit of quick access and reasonably priced rental property is the most significant element driving the popularity of co-living spaces. So, while you have the security, convenience, and privacy of your bedroom, you can always come out and interact with people who share your interests.
Living in a community is not a new concept; what is new is that, unlike in the past, millennials are drawn together by their lifestyle choices rather than religious ties or other causes. Youth choose housing places that are more social and adaptable. “Home” is a growing trend among the younger generation. “Home is where the fun is,” says an increasing trend among the younger generation. The following are some of the main reasons why co-living is the ideal investment for young professionals:
- You save money
- You have to deal with well-organized players
- Tailor-made amenities are made available
- You can stay near your workplace
- Build community
Co-living spaces: the perfect place to live with people who share your interests
When traveling, staying in a hostel has its advantages: aside from the comparatively affordable housing fees, you meet like-minded people from all over the world with whom you may bond over board games and pub crawls. Because all resources are pooled and expenses are shared, coliving fosters a sense of community in the way individuals live. People who choose co-living, unlike certain communes, do not separate themselves from the rest of the world; they participate in normal social interactions while preferring to live with like-minded people. As a result, co-living has grown in popularity around the world, with many organizations offering multiple locations. Many people want to be a part of the community and form ties, therefore it appeals to them.
When you live in a co-living community, it’s easy to open your door and start a new friendship or even a company. Other benefits include a reduced financial burden, community help, group activities, and a sense of belonging. Co-living is gaining popularity among younger generations, especially among digital nomads who wish to travel without having to worry about a mortgage or lease. Because this manner of living places such a premium on agility, it might be liberating for certain people to be able to move freely from place to place.
The majority of people who relocate to a new city sign a one-year lease, furnish the space, set up utilities, and then either move or renew the lease at the end of the year. Co-living spaces, on the other hand, usually have no lease obligation or minimum commitment, making them a perfect option for those who wander from city to city for professional or personal reasons.
How can technology and operations merge in India’s co-living spaces?
In India, co-living options include single occupancy, multiple occupancy apartments, and houses. The current focus is primarily on students and working people. Scaling co-living spaces is difficult for investors and corporations since they are operationally demanding. This could be because, in contrast to pure technology, hybrid technology is used to provide the optimum customer experience. Companies must strike a balance between operational and technological usage to give an exceptional client experience. Businesses can scale to newer places by combining operations and technology.
People who choose co-living, unlike certain communes, do not separate themselves from the rest of the world; they participate in normal social interactions while preferring to live with like-minded people. As a result, co-living has grown in popularity around the world, with many organizations offering multiple locations. Many people want to be a part of the community and form ties, therefore it appeals to them. When you live in a co-living community, it’s easy to open your door and start a new friendship or even a company. Other benefits include a reduced financial burden, community help, group activities, and a sense of belonging.
Investing in Co-living for rental yield
Co-living is a style of housing that combines private living quarters with communal public facilities, and it has become the new catchphrase among alternative asset classes. Co-purpose livings are to create a community-centered environment that encourages social interaction through community events while yet allowing privacy in living arrangements. It all boils down to sharing a workspace with like-minded people, where one can benefit from being a member of a working community by being inspired by others. People will remember 2018 for, among other things, spending a considerable portion of their time actively engaged in virtual socializing.
Co-living, for the most part, tries to keep things genuine by encouraging residents to participate in real-life activities and communicate with one another, as well as to succeed.
Experts say that converting a standard flat into a co-living space might benefit property owners because such spaces are in high demand. Despite the inevitable churn of tenants, co-living spaces offer the opportunity to earn a fairly constant rental revenue. When planning co-living spaces, keep the following factors in mind:
- The schedules of tenants are highly hectic.
- Customers’ current requirements have been addressed.
- Additional services such as entertainment, safety and security, laundry, repairs, and upkeep can all be given at a low cost.
Co-living, Hostels, or PGs- which is the Ideal Investment Option?
The main benefit of living in a co-living environment is that you don’t have to give up your comfort when you’re away from home. Utilities and maintenance are comparable to what one would find in one’s own home. While co-living isn’t as cheap as a hostel, it does offer additional amenities for a somewhat higher cost. Hostels and PGs, according to experts, are primarily for accommodation and boarding, but co-living offers a more elevated lifestyle, with possibilities to socialise and cohabit without the intrusive surveillance and rules that plague hostels and PGs.
Short-term to long-term lease alternatives are available at co-living spaces. As part of the complex’s recreational activities, the co-living service providers host yoga, festival nights, movies, sports tournaments, and other events. Furthermore, hostels and PGs may have visitor policies, return home dates, and other restrictions that make flexible working hours impossible.
Future of Co-living in India
In India, technology has ushered in a slew of new rental and property investment options. Within a decade, the industry has risen to greater heights. According to reports, India’s Co-Living Industry will reach 1 trillion in 2023. In India, the co-living business is progressively displacing traditional housing. It provides millennials with a decent lifestyle without draining their bank accounts. The concept of expensive living has evolved as a result of low-cost housing.
In India, the co-living industry is quickly growing, with various business models entering the market. It has opened up doors, particularly for young working professionals and students who are served by entrepreneurs. Many Indian investors are now actively attempting to diversify their portfolios by including co-living spaces, with places like Bengaluru, Hyderabad, Chennai, and Pune seeing the most demand. Some of the factors contributing to its growing popularity include:
- Steady Demand
- Low Cost of Maintenance
- Higher Rental Income
- Increasing Cost of Living
How to invest in co-living through Assetmonk?
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Frequently Asked Questions on Co-Living Spaces Investment:
A co-living space is a form of commercial real estate investment that arises when an investor leases out his or her residential property to co-living companies, who renovate it to meet current co-living requirements and provide cutting-edge amenities.
These businesses can rent out additional rooms or spaces for beds, build common areas for relaxation, and make appropriate improvements to communal areas like the kitchen and bathroom to meet co-living standards. From their share of capital gains from these firms, the investors produce a steady rental income.
It is a form of investment that guarantees a steady rental income without having to worry about the expensive maintenance and repairs. In India’s real estate market, demand for co-living spaces is growing at a faster rate. India’s co-living market is worth $12 billion. Investing in these communities makes sense because demand appears to be increasing.
Co-living space is a concept of modern housing that allows different residents to share the same apartment space. It offers basic facilities like wi-fi, gas, electricity apart from shared common spaces such as kitchen, common relaxation areas, gyms and living rooms etc. It provides a platform for people to socialize with different people who are like-minded and provides an affordable alternative to students and professionals.
Coliving is a new rental trend. It’s a type of shared housing arrangement that’s becoming more popular in India’s major cities. Companies provide shared living spaces, with each renter having their own bedroom as well as common areas. This may appear to be a typical roommate situation.
In most traditional apartments, rent just covers the cost of the roof over your head. Your rent payment for coliving includes everything from high-speed Wi-Fi and utilities to furniture and other basics. The majority of multi-bedroom apartments aren’t built with roommates in mind. Many of today’s multi-bedroom flats are 1 or 2 bedroom units that have been converted into numerous rooms, resulting in smaller private areas and inadequately sized shared spaces. Coliving homes are designed to make sharing a home with people more convenient and comfortable.
According to a recent analysis by a leading real estate portal, India’s Co-living market (excluding student/senior housing) was worth $273 million in 2019 but will plummet 46% to $126 million in 2020. The average monthly rent per tenant fell 15% to $150 in 2020, down from $175 in 2019.
Some features of co-living which attract investors include the convenience of living, security, personal preferences, landlord-free zone, privacy, etc.
Co-living companies place their buildings strategically near city economic zones. Moving to a place closer to work makes sense because the daily commute to and from work consumes so much of one’s productive time. This saves time, energy, and money in addition to improving productivity.