While millennials have been driving a number of businesses in the country like entertainment and restaurants for quite some time, of late they have begun giving a new shape and contours to a much larger industry-Real Estate. Millennials have been warming up to the idea of shared living spaces an making real estate players sit up and seriously plan such shared spaces for them. Real estate industry has now begun to recognise the latent demand for co-living and the way collaborative consumption is redefining living spaces in cities that have significant student and young-age working population.
What Are Co-living Spaces
Co-living spaces are basically rented houses that are fully furnished and is let out to a group of people who wish to stay together. Students choose co-living spaces that are close to their college and working people choose such spaces which are in close proximity to their offices, much like in a paying guest accommodation, but the co-living spaces offer lot of freedom that is usually not there in paying guest accommodations.
Co-Living spaces are managed spaces in which the operator provides many kinds of facilities to the occupants who can choose to share a room or the house and can have a lot of interaction.
Shortage Of Accommodation For Millennials
There is a severe shortage of student housing or hotels within college campuses in the country. Students who are able to get accommodation inside campuses represent only about one third fraction of the total number of students in all colleges, according to report.
Then there are young people who leave their parental homes to take up a job in a different city. These categories of people form the bulk of customers for co-living companies. Co-living space providers have a lot of advantages. They can have a yield of 12-13 percent on their investment in this segment, according to property experts. This has led to a number of real estate companies and others to get into this business. Many of the foreign players are also joining the band wagon in India and there are some decent private equity deals that are happening in the co-living segment.
Way Forward For Co-living Segment In India
Co-living started with a few metropolitans like Delhi, Mumbai, Bangalore and Chennai but now there are tier-II towns like Lucknow, Jaipur, Coimbatore and Ahmedabad that are joining the fray and co-living spaces are coming up in these cities as well. The new trend of co-living is just at its nascent stage in India and expected to grow at handsome rate in the near future. The potential can be gauged from the fact that India has a huge millennial base (population) which is expect to grow in future.
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