We live in a globally connected world and this has led to the real estate sector experiencing disruption led by nomadic millennials, who are redefining the meaning of ‘living’. Co-living, the new mantra within the ambit of alternative asset classes is a form of housing which combines private living spaces with shared communal facilities.
The Plug and Play Millennials
The biggest driving force behind the rising popularity of co-living spaces are the young renters moving to new cities for job prospects who are looking to meet and connect with new people. In every sector millenials are transitioning from owning to sharing. The rising population of millennials and their share in the workforce are key to these changing times in India. In 2018, millennials constituted around 42% of the workforce in India across top seven cities (Mumbai, Delhi NCR, Bengaluru, Hyderabad, Kolkata, Pune and Chennai), and are expected to grow at 6% CAGR by 2023. Moreover, 40% of the millennial workforce are migrants who have limited budgets, but rate flexibility and convenience at the top.
Metropolitan city centers, near employment hubs like IT parks, special economic zones or universities are being redesigned, repositioned and rebranded keeping millennials in mind. This trend is giving impetus to an organized rental market in many Indian cities in the same way as co-working spaces did for shared office spaces.
CoHo: A coliving startup
Coliving a new take on an age old concept - Suresh Rangarajan, CEO Colive
CoLiving or Rental?
The Real estate market for Coliving
The rental market in the country boycotts single women and men. It is becoming increasingly difficult for single people to find homes in metros which offer the highest job opportunities. Coliving directly addresses this issues by targeting these distressed millennial renters and hence had gained traction in recent years.
Single Women cannot find homes in India's biggest metro - Mumbai.