According to a report published by JLL Research the supply of beds by organised co-living players is expected to increase to about 541,000 across the top seven cities by 2023, with Delhi NCR and Bengaluru accounting for more than 50% of this cumulative capacity. According to the report, India’s urban co-living market is set to become Rs 1-trillion opportunity.
“As an indication of future opportunities, alternative assets such as co-living are gradually coming into the radar of domestic as well as overseas investment firms. Several large global funds and institutional investors have shown active interest in co-living projects, with Sequoia, Nexus Venture Partners and Goldman Sachs already committed to the sector,” says the JLL report.
Co-living is a common thing in mature markets like UK and USA where young families choose to share living spaces. These markets have already seen the rise of branded co-living set-ups. A world-wide pattern of soaring urban property prices and stagnant wages, together with the rise of digital nomads, are all bringing the global ‘sharing economy’ closer home. In India too, this rising gap between where and how people want to live and what they can afford is necessitating the development of concepts like co-living. Most young professionals migrating to metropolitan cities today face a choice between spending a big share of their wallets on renting their own space, or moving into shared house at a fraction of that cost. Sensing this demand for shared rental accommodation, unorganised as well as organised players have begun to create offerings to suit the need of such migrant millennials in India’s leading cities. The rising population of millennials and their share in the workforce are key to these changing times.
JLL report is based on survey targeting millennials across the top seven cities of Mumbai, Delhi NCR, Bengaluru, Hyderabad, Chennai, Kolkata and Pune.