Organized Rental Housing: Why Co-Living Is The Need Of Hour In India?

Pic Credit: e27/CoHo

If you believe that co-living is an alien concept, think again. From ancient dharamshalas to working youth hostels to paying guests, the concept was present in different forms since ages.

Co-living is nothing but a new business model which comes across as more fresh, organized, elite and convenient for the youth. Nowadays, co-living operators, like CoLive, Zolostays, Stanza Living and CoHo, are not only providing stay but safety, security, maintenance, communal kitchen, community feeling and a modern lifestyle.

Various investors have also shown interest and picked up stakes in a few of these startups making apparent their confidence in the potential of this niche segment. Here is why developers and investors should take co-living seriously:

  • India is fast progressing towards to become one of the world’s youngest countries. As per census 2011, the median age is expected to reach 27.7 by 2021.
  • Most of the youth from the age group of 21-29 is expected to have unconventional lifestyle preferences and no-compromise attitude. They will like to live nearby to their workplace at a good location instead of cheaper peripheral locations.

“While earlier generations moved to the peripheral locations to fulfill their dreams of owning a house, millennials refuse to compromise,” said Ankit Bhartiya, Senior Executive, JLL’s research team. “They do not mind staying in rented accommodation. With more millennials entering the workforce, the demand for rental housing is expected to go up.”

  • Although organized rental housing has begun in India, ‘relevant supply’ is still restricted and inadequate. With demand forecasted to increase to 4.4 million in the Delhi, Mumbai and Bangalore by 2021 while supply remaining constrained, growth in rental yield is expected.
  • Millennials are more concerned about experiences rather than ownership. Owing a house will not be in their checklist for a while no matter how well they are earning but living in an uptown, elite, swanky place fitted with all modern amenities and habited by other like-minded people will definitely be.

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