Coliving
Coliving
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The Current Market
The Current Market
Who is the target audience?
Who is the target audience?
"The Plug and Play" Millennials
The rising population of millennials and their share in the workforce are fundamental to these changing times in India. Millennials constituted around 42% of the workforce in India across top seven cities (Mumbai, Delhi NCR, Bengaluru, Hyderabad, Kolkata, Pune and Chennai) in India. Their population is to grow at 6% CAGR by 2023 (Knight Frank, 2019).
The Coliving market in India
The Coliving market in India
"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" (Knight Frank, 2019, p.21).
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
Coliving in Numbers
Coliving in Numbers
- 3.6 Million beds in 2018 to 5.7 million beds in 2023
- India’s co-living market is expected to increase at a strong CAGR of 17% in the next five years to a nearly INR 1-trillion market. Delhi NCR will constitute nearly 40% of this potential market opportunity by 2023, followed by Mumbai at 25%.
- Expected growth: 458 billion (6 billion USD) INR market in 2018 to 997 billion INR (13 billion USD) in 2023.
- 10 - 20% profits for operator
- 2 to 4 times residential rental yield for Landlords
- Several models: Management contract, Lease and Operate, Hybrid, Franchise model. The lease and operate model is most prevalent
Coliving: The Rental Disruptor
Coliving: The Rental Disruptor
- Young working professionals move from care of parents to care of corporates
- Competitive rents with bundled services
- Plug and play rental - Short term tenants between 1 week to 11 months
- Landlords are forced to lower their advance (security deposit) demands from 6 months to 1-2 months as they are unable to compete with the growing coliving industry
- Higher demand for housing amenities, services and design
- Demand for formal rental agreements
- Targets only one sector of the population and income bracket. Coliving ignores low income population, large families, seniors
- Geographic concentration: Coliving startups target only city centers and thriving neighborhoods increasing real estate values
Current Projects
Current Projects
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