The Rise of Co-living Spaces in Indian Cities

From co-working to co-living spaces – youngsters today have so many options. Remember back in the day when hostels were the only option for students moving out of their hometowns for college? Well, those days are long gone! With co-living spaces in India, you get all the benefits of a hostel, like convenience and safety, while feeling like you're staying in a hotel.

What is Co-living?

Co-living is all about meeting the needs of comfort, convenience, and community, which traditional living options often fall short on. Co-living spaces offer fully furnished rooms with all the necessary amenities. This includes a common study zone the students can use, a common kitchen, a utility space and a lounge area, and a private bathroom and bedroom each resident can access. 

Co-living spaces in India also provide cleaning and maintenance services. Therefore, you don't need to worry about separate payments for deposits, utilities, furniture, and those annoying agent commission fees. It's all bundled up under one operator who handles everything related to your living quarters.

Now, there are many different ways to operate co-living businesses. Some operate with minimal assets, using profit-sharing leases or management agreements. Others prefer fixed market-based leases, which give landlords a steady income over a longer period. Since co-living attracts a wide range of clientele, these operators have the potential to scale up their operations, which means they can offer property owners higher incomes. Plus, they handle services like cleaning, furniture, and utilities, making the whole experience even better. It's a win-win situation for everyone involved!

But it's not just about the physical perks. Co-living operators know how to create a sense of community. They organise events and meet-ups for all the tenants to mingle and have a good time. 

The Growth Story of Co-living Spaces in India

Co-living spaces are gaining traction in Indian cities, both in terms of delivering services and customer acquisition. There's a shortage of accommodation options for students and people with new incomes, and the market just keeps getting bigger. That's why corporate developers and start-ups are embracing co-living. Goldman Sachs and Warburg Pincus have invested in co-living spaces as well.

Renting is becoming more popular because of rising real estate prices and the younger generation's lack of commitment to home ownership. The old-school paying guest tradition just doesn't cut it anymore. Millennials have high expectations, and they want top-quality modern, affordable living spaces. 

In a survey back in 2018, 72% of people were totally on board with co-living spaces. And more than 55% of people were in the age range of 18-35 years. The survey, which covered big metropolitan cities, found preferred rentals included the brackets ₹10,000 to ₹15,000, while proximity to work and community infrastructure remained in the top priority for millennials.

Many international brands are partnering with Indian names in Bengaluru, Pune, Delhi NCR, and others to rent apartment blocks and lease beds with amenities and services like electricity, housekeeping, and meals.

Challenges of Co-living Spaces in India

The operators of co-living spaces in India also face some unique challenges. One big challenge is low returns on investment. Therefore, the operators must be super smart about using the space efficiently. They need to make sure every inch counts and provide a seamless and hassle-free experience to their tenants.

Also, compared to other thriving markets like Hong Kong and Singapore, Indian customers have lower spending power. So, co-living operators need to find that sweet spot where they can provide quality services while keeping the costs reasonable for their customers.

Why Do Millennials Prefer Co-living Spaces in India?

Young professionals and students often face many issues dealing with landlords and agents. They have strict and biassed mindsets and make decisions based on their own rules. They also come up with arbitrary policies, like curfews, no friends or family allowed, and even dictating food preferences. It creates a frustrating living atmosphere, especially for young adults trying to find their way in the world. And let's not forget about the outrageous rental deposits they demand. It's difficult, especially when you're starting your career or relying on your parents for financial support.

However, co-living spaces in India are here to save the day. They're making a real impact in this chaotic rental market. Co-living space operators are offering comfortable and trendy living spaces with clear pricing policies and managed services. And the best part? You get to experience a collegiate atmosphere with a cool community vibe.

About PropertyAngel

PropertyAngel is a leading O2O (online-to-offline) second landlord platform. We are a Bangalore-based property management company offering professional property management for individual apartments, houses, and villas. If you need assistance in managing your property effectively in Bangalore, please contact us at (91-7406484455).