On account of higher rental income to the owners and lower cost of living, the co-living space is gaining traction among Indian millennials. As per the industry insiders, co-living may offer a higher rental yield of as much as 8-11 per cent, as compared to the current average yield of 1-3 per cent in residential properties. The real estate experts say co-living spaces can also bring down the average cost of living for consumers by as much as 10-15 per cent on the back of optimal real estate utilisation and the economies of scale.
Elaborating upon the monetary angle involved into the rise in co-living space in Indian real estate Anuj Puri, Chairman – ANAROCK Property Consultants said, “Co-living certainly offers an opportunity for fairly steady and higher-than-average rental revenue. Though there is bound to be some churn in tenants, the reliability and comfort of a particular unit or set of units spread rapidly by word-of-mouth. An individual property owner who has transformed and tenanted one or two apartments into co-living units can expect more customers coming in via reference.”
Anuj Puri of ANAROCK went on to add, “Going by the recent trends, co-living may offer a higher rental yield of as much as 8-11 per cent, as compared to the current average yield of 1-3 per cent in residential properties. It is definitely paving the way for a new asset class in real estate investing. Interestingly, co-living spaces can also bring down the average cost of living for consumers by as much as 10-15 per cent on the back of optimal real estate utilization and the economies of scale.”
Speaking on the clientele in co-living space business Pratul Gupta, Co-Founder of Grexter said, “Co-living industry has come up as a savior for students and young working professionals, who often face difficulties to find an ideal place to stay in a new city. Given the ridiculously high deposits and a negative outlook towards renting to bachelors, apartments are not a viable option for many. On the other hand, traditional PGs don’t even offer basic facilities like well-ventilated rooms or high-speed internet. Co-living spaces are not only affordable but also offer a wide array of amenities ranging from fully-furnished rooms to beautifully done common areas. Most importantly, co-living facilities provide a sense of belonging, helping tenants to escape the feeling of isolation and connect with other like-minded individuals.”
Detailing about the business potential involved in the co-living realty Suresh Rangarajan, Founder & CEO, Colive told Zee Business online, “The co-living sector has total untapped demand of about 46 million beds. Packed with modern amenities, these spaces are designed that meets the taste and needs of the targeted segment (Which was generally targeted towards students earlier but now slowly targeting working professionals as well) and offer residents to rent a lifestyle against renting a home which doesn’t cover basis facilities such as housekeeping, laundry services, security and meals.”
Suresh Rangarajan of Colive further added that co-living provides all the mentioned amenities with additional facilities such as cinema and games room, libraries, gyms, pools and high-speed Wi-Fi thereby paving way for the gated community. The traditional mindset of young Indians is evolving. “With disposable incomes in hand young Indians’ housing needs no longer is constrained to renting a house or a paying guest. They now seek a place where they find convenience and enjoy the sense of living in a community,” concluded Suresh Rangarajan of Colive.