Frequent job changes and relocations are a reality for young professionals in the 22–35 age group. Whether moving to Bangalore for a new startup role or shifting to Gurgaon for a corporate career, finding the right accommodation that balances cost, convenience, and lifestyle is crucial.
This guide explains how traditional rentals, serviced apartments, and co-living spaces cater to this demographic and helps you make the right choice.
Why housing needs are different for today’s young professionals
Today’s young professionals, particularly those in fast-growing industries like IT, startups, and consulting, have unique housing needs driven by frequent job changes, relocations, and a desire for flexible lifestyles. Unlike previous generations, they prioritise convenience, affordability, and community over long-term commitments.
What makes their housing needs different?
- Frequent relocations: Job opportunities require moving to different cities, making long-term leases less practical.
- Focus on experiences over assets: Young professionals prefer spending on travel, hobbies, and experiences rather than investing heavily in home furnishings or long-term housing.
- Community-centric living: Many seek environments that offer networking opportunities and social interaction, especially when moving to new cities alone.
- Minimal setup hassle: Fully furnished, all-inclusive housing is far more appealing than managing multiple utility connections and furnishing a home.
- Flexible budgets: With varying income levels and career stages, affordability remains a key factor, especially in metro cities with high living costs.
Traditional rented apartments: stability and privacy at a cost
Traditional rented apartments are a long-standing option for individuals and families. The most significant advantage here is your privacy and control over your living space. Depending on your preference, you can choose between furnished, semi-furnished, or unfurnished apartments.
Cost breakdown
Renting an apartment involves multiple costs beyond the monthly rent.
- Monthly rent: This varies significantly depending on the city, locality, and apartment size. For instance, a 1 BHK in Bangalore’s Whitefield might cost Rs. 15,000 per month, while the same in Mumbai’s Andheri would be upwards of Rs. 30,000.
- Security deposit: Typically, 2 to 10 months’ rent, depending on the city’s rental norms. Bangalore and Chennai have higher security deposit requirements than Pune or Delhi.
- Utilities: Electricity, water, gas, and internet services can add Rs. 3,000 to Rs. 7,000 to your monthly expenses.
- Furnishing and setup costs: If the apartment is unfurnished, you’ll spend around Rs. 50,000 to Rs. 1,00,000 setting it up.
Also read: Should you pick furnished or unfurnished rental home?
Pros and cons
The benefits are substantial—privacy, space, and customisation. It’s an excellent option for families and those planning to stay for several years.
However, the challenges lie in the high upfront costs, ongoing maintenance responsibility, and the need for long-term lease commitments. If you need flexibility or are unsure of your long-term plans, this may not be the ideal choice.
Serviced apartments: convenience at a premium
Serviced apartments blur the lines between a home and a hotel, offering fully furnished spaces with amenities like housekeeping, concierge services, and utilities bundled into the rent. These are perfect for short-term stays or business professionals seeking luxury and convenience.
While serviced apartments are widely available in major cities like Mumbai, Delhi, and Bangalore, they cater to a niche audience willing to pay a premium for comfort and hassle-free living.
Costs and what’s included
Serviced apartments can be significantly more expensive than regular rentals. Monthly rents typically range from Rs. 50,000 to Rs. 1,50,000 in metro cities, depending on location and services offered. The cost usually covers utilities, Wi-Fi, housekeeping, and access to amenities like a gym and pool.
For example:
- In Bangalore, a 1 BHK serviced apartment in Koramangala costs around Rs. 60,000 per month, including all services.
- In Mumbai’s Bandra, the same might touch Rs. 1,00,000 or more.
Must read: Serviced apartments: A comfortable and convenient residential choice
Why choose a serviced apartment?
If you’re on a short-term project, relocating to a new city temporarily, or simply prefer hotel-like services without the impersonal feel of a hotel, serviced apartments are worth considering. However, they are not ideal for long-term stays due to their high costs.
Co-living spaces: affordable and community-driven
Co-living is gaining traction among young professionals, students, and digital nomads in India. Co-living spaces offer affordable accommodation with shared amenities, creating a community-driven environment. Think of it as a modern-day hostel with premium features like coworking spaces, game rooms, and community events.
Co-living operators like Zolo, Stanza Living, and Colive are reshaping the rental market in cities like Bangalore, Pune, and Delhi, offering an attractive alternative to traditional and serviced apartments.
Also check: Co-living spaces versus hostels and PG accommodations
Cost and inclusions
The most significant selling point of co-living is its affordability and hassle-free setup. Monthly rents for co-living spaces are all-inclusive, covering electricity, water, internet, housekeeping, and recreational facilities.
- Shared rooms: Rs. 8,000–Rs. 15,000 per month
- Private rooms: Rs. 15,000–Rs. 30,000 per month in premium co-living spaces
Unlike traditional rentals, there are no hefty deposits or setup costs. Most operators only charge a one-month deposit.
The co-living lifestyle
Co-living is more than just shared housing; it’s about building a sense of community. Regular social events, networking opportunities, and shared spaces make it a great option for those new to a city or looking to expand their social circle. However, the downside is the lack of privacy, which may not suit everyone.
Also read: Co-living: The best option for working professionals
Impact on social life and networking opportunities
One of the most overlooked yet vital aspects of choosing a housing option is how it affects your ability to build social connections, especially in a new city.
Co-living spaces are designed with community-building at their core. Many offer regular events—such as movie nights, hackathons, yoga classes, or networking meetups—which naturally create opportunities for social engagement and even professional collaboration. Shared kitchens, lounges, and coworking areas encourage spontaneous interactions, making them ideal for extroverts or newcomers looking to settle in quickly.
Serviced apartments, while more private, often include shared facilities like gyms, cafés, or business centers. Though they lack the structured social ecosystem of co-living spaces, short-term guests—often business travelers—might connect over shared professional interests, albeit in a less informal setting.
Traditional rentals, on the other hand, offer the least community engagement unless you’re in a society that actively organizes social activities. Residents tend to keep to themselves, which can lead to isolation if you don’t already have a network in the city.
Insight: Co-living has proven especially valuable for remote workers and digital nomads who seek both affordability and connection. Many report improved mental well-being and expanded professional circles after moving into co-living spaces.
Comparative analysis: which one suits you best?
Here’s a quick comparison of the three options based on key factors:
| Factor | Traditional Rentals | Serviced Apartments | Co-living Spaces |
| Monthly cost | Low to moderate | High | Low to moderate |
| Upfront costs | High (deposit + furnishing) | Minimal | Minimal |
| Privacy | High | Moderate | Low to moderate |
| Flexibility | Low (6–12 months lease) | High (short-term stays) | High (month-to-month options) |
| Amenities | Depends on building | Extensive | Moderate to extensive |
| Ideal for | Families, long-term residents | Business travellers, ex-pats | Young professionals, students |
Effective monthly cost (including hidden charges)
While the headline rent looks straightforward, the real monthly outflow can vary widely once you add deposits, brokerage, furnishing costs, GST, and maintenance. Factoring these hidden expenses gives a clearer picture of affordability and flexibility across housing choices.
| Expense head | Traditional Rentals | Serviced Apartments | Co-living Spaces |
| Base rent (metro avg) | ₹15,000–₹30,000 (1 BHK) | ₹50,000–₹1,20,000 (1 BHK) | ₹8,000–₹20,000 (shared/private) |
| Security deposit | 2–10 months (Bangalore/Chennai higher) → adds ~₹3,000–₹7,000 per month if amortised | Usually 1 month or none | 1 month |
| Brokerage | 1 month rent in most metros (spread ~₹1,500–₹2,500 monthly if annualised) | Not applicable | Not applicable |
| Utilities (power, water, internet, gas) | ₹3,000–₹7,000 | Included in rent | Included in rent |
| Maintenance/society fees | ₹1,000–₹3,000 | Included in rent | Included in rent |
| Furnishing/setup | ₹50,000–₹1,00,000 upfront (adds ~₹2,500–₹5,000 per month if spread over 2 years) | Fully furnished | Fully furnished |
| GST impact | Not applicable on rent | 12–18% GST included in bill (non-HRA deductible in most cases) | Some operators levy 18% GST if turnover > ₹20L |
| Lock-in/exit cost | 6–12 months typical lease; early exit penalty = 1–2 months’ rent | Flexible, usually weekly/monthly billing | 1 month notice; mid-month exit may lose rent |
Net effective monthly outflow:
- Traditional rental: ₹22,000–₹45,000 (after factoring deposit amortisation + utilities + setup)
- Serviced apartment: ₹55,000–₹1,40,000 (all-inclusive but GST-loaded)
- Co-living: ₹9,000–₹22,000 (deposit light, minimal extras)
This shows why co-living remains the most cashflow-friendly option, serviced apartments the most expensive but flexible, and traditional rentals the long-term equity of space vs upfront cost burden choice.
When should you choose each option?
- Traditional rentals are best if you’re seeking a long-term stay, prefer privacy, or are living with family.
- If you’re on a short-term assignment, have a flexible budget, and value convenience over cost, serviced apartments make sense.
- Co-living spaces are perfect for young professionals, those new to a city, or anyone looking for an affordable, hassle-free living experience.
Also read: Different types of apartments to choose from
City-wise cost insights
Housing costs in India can vary widely across cities. Here’s a snapshot of how these options compare in different metros:
Mumbai
- Traditional rentals: Rs. 15,000–Rs. 35,000 for a 1 BHK
- Serviced apartments: Rs. 70,000–Rs. 1,50,000
- Co-living spaces: Rs. 10,000–Rs. 25,000
Bangalore
- Traditional rentals: Rs. 10,000–Rs. 25,000
- Serviced apartments: Rs. 50,000–Rs. 1,20,000
- Co-living spaces: Rs. 8,000–Rs. 20,000
Delhi
- Traditional rentals: Rs. 12,000–Rs. 30,000
- Serviced apartments: Rs. 45,000–Rs. 1,00,000
- Co-living spaces: Rs. 8,000–Rs. 18,000
Availability and accessibility of housing options across Indian cities
While traditional rentals are available in nearly every Indian city and town, serviced apartments and co-living spaces are more concentrated in metro and Tier-1 cities. For instance, co-living options by operators like Stanza Living, Zolo, and Settl are widely available in Bangalore, Pune, Hyderabad, and Delhi NCR, catering to a younger, mobile workforce. In contrast, serviced apartments are typically found in business hubs like Mumbai, Gurgaon, and central Bangalore, where short-term corporate stays are common.
If you’re moving to a Tier-2 city, you may have to rely on traditional rentals due to limited availability of co-living or serviced setups. It’s important to assess local supply through real estate platforms or co-living aggregators before shortlisting a housing type.
Quick Tip: Bangalore and Pune have the most extensive co-living networks. Mumbai and Gurgaon lead in serviced apartment availability. Traditional rentals are widespread but vary greatly in terms of quality, landlord policies, and furnishing.
Tax benefits and documentation differences
If you’re a salaried employee receiving House Rent Allowance (HRA), your choice of accommodation directly impacts your ability to claim tax deductions under Section 10(13A) of the Income Tax Act.
- Traditional rentals
These are the most HRA-compliant option. With a registered rent agreement and monthly rent receipts, tenants can claim HRA benefits. If your annual rent exceeds ₹1 lakh, you must submit the landlord’s PAN to your employer or while filing ITR. - Co-living spaces
Most organised co-living operators like Zolo and Stanza Living issue monthly rent receipts. These can be used for HRA claims if the receipts include rent breakup, the company’s GST number, and PAN. However, smaller operators may not comply with formal documentation, which could create issues during ITR filing or employer audits. Always confirm upfront. - Serviced apartments
These usually provide hotel-style invoices rather than standard rent receipts. Since they’re billed as services (often under GST), they typically don’t qualify for HRA exemptions unless they have a registered rental lease component. Employees relying on HRA should avoid serviced apartments unless the landlord issues compliant rent receipts and there’s a formal rental agreement.
Pro Tip:
To avoid disallowance during tax assessment, ensure your rental provider includes:
- Monthly rent amount
- Duration of stay
- PAN of landlord (if applicable)
- Stamp paper or registered lease copy (for long stays)
Housing.com POV
The right housing option depends on your budget, lifestyle, and the duration of your stay. If stability and privacy are your priorities, traditional rentals remain the go-to choice. Serviced apartments are all about convenience and luxury, while co-living spaces combine affordability with a vibrant community experience.
Weigh your options carefully, considering the hidden costs and long-term commitments associated with each choice. Whether you prioritise affordability, convenience, or a sense of belonging, India’s evolving housing market offers something for everyone.
FAQs
What is the main difference between serviced apartments and co-living spaces?
Serviced apartments offer hotel-like services for short-term stays, while co-living spaces focus on affordability and community living with shared amenities.
Which option is best for short-term stays in India?
Serviced apartments are ideal for short-term stays due to their fully furnished setup and included services like housekeeping and utilities.
Are co-living spaces cheaper than traditional rentals?
Yes, co-living spaces are usually cheaper since the rent is all-inclusive and there’s no need for separate utility payments or furnishing costs.
Do traditional rented apartments offer more privacy than co-living spaces?
Traditional rentals provide more privacy since they are independent units, unlike co-living spaces with shared areas.
What are the upfront costs for renting an apartment in India?
Upfront costs include a security deposit (2–10 months of rent), furnishing expenses, and utility setup fees, which can add up significantly.
Can I get a short-term lease with a traditional rental?
Short-term leases are rare for traditional rentals, as landlords typically prefer 6–12 month agreements.
Which option offers the most flexibility in terms of lease duration?
Co-living spaces offer the most flexibility, often allowing month-to-month contracts without long-term commitments.