Over 70% millennial willing to consider co-living spaces in top cities: Survey

The survey also observed that over 55 per cent respondents in 18-23 years age group are willing to spend Rs 10,000-15,000 per month on such accommodation.

Ankit Sharma  |  ETRealty

NEW DELHI: About 72 per cent millennial (18 – 23 years) are willing to consider co-living spaces as an option for their accommodation, according to a recent survey conducted by Knight Frank India.

Co-living is a concept of housing where the living space is shared by residents.

The survey was undertaken across top cities of India, including Mumbai, Bengaluru, Pune, Hyderabad and NCR. It also observed that over 55 per cent respondents in 18-23 years age group are willing to spend Rs 10,000-15,000 per month on such accommodation.

“As an asset class, the biggest driving force behind the rising popularity of co-living spaces are young renters moving to new cities who are looking for easy access and reasonably priced rental accommodation," said Shishir Baijal, Chairman and Managing Director, Knight Frank India.

Proximity to work and social infrastructure remained top priority for millennial while selecting a location while only 5% gave importance to rental costs.

The study further adds that a stable co-living facility generates net yield of approximately 12%, while rental yields from a traditional 1BHK remain at 1.5 – 3%.

“As more and more organised players enter co-living spaces, these are likely to attract institutional funding, assuring better yields to development and operating companies,” Shishir added.

Recently, StayAbode, a co-living operator partnered with CP Developers to set up a co-living space in Whitefield, Bengaluru. Apart from StayAbove, several startups such as CoHo, CoLive, Stanza Living, Zolostays, etc are operation in the segment.

Co- Living | Rent a lifestyle

Co-living – Concept and renting philosophy

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 idea of co-living is to create a community-centred environment that not only provides privacy in living arrangements but also promotes social contact through community events. As an asset class, coliving seeks to build a community centred around ‘real socialising’ in a world where social media platforms, such as Facebook and Instagram, are the virtual alternatives for socialising for 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 India, the co-living concept is gaining widespread acceptance and has brought to the fore some new models in the private rental sector. Though the concept is novel, it’s here to stay, as India’s millennial population currently accounts for 440 million 1 . The growing interest for co-living spaces in cities such as Bengaluru, the National Capital Region (NCR) and Pune has been instrumental in many investors sitting up and taking notice of this emerging sector to diversify their portfolio and risk.

Millennials prefer renting co-living spaces in top cities

Over 50 per cent people in the age group of 18-35 years are willing to rent co-living spaces and pay up to Rs 15,000 a month in top Indian cities including Delhi NCR, Mumbai and Bengaluru, according to a survey by Knight Frank. 

The property consultant Monday released its survey report titled "Co-Living - rent a lifestyle" that revealed 72 per cent of millennials (18?23 years) preferred co-living spaces. 

The survey was undertaken across top cities of India, including Mumbai, Bengaluru, Pune, Hyderabad and NCR among a cross-section of people of 18-40 years age.

Nearly 40 per cent of all respondents are most comfortable in paying between Rs 120,000?180,000 per annum towards rental housing in key cities of India. The sweet spot for rentals thus remains at a monthly outflow of Rs 10,000-15,000.

Proximity to work and social infrastructure remained top priority for millennials while selecting a location, while only 5 per cent gave importance to rental costs.

Hotel Icon Ian Schrager Thinks Communal Living Is the Future

- Benjamin Solomon

The next big disruptor in hospitality, according to Ian Schrager, is co-living spaces.

“Communal living is blurring the distinction between residential and hotels,” the hotelier and Studio 54 co-founder argued during Bloomberg’s Year Ahead: Luxury conference in Manhattan on Thursday.

The mastermind behind the Public Hotel urged audiences to look at millennial buying statistics as evidence of this trend, which has seen growth in so-called co-living, where residents buy intofurnished, semi-serviced apartments, either by the unit or by the bedroom. These are sort of communes for digital nomads with pop design, Casper mattresses, Nest thermostats, and other covetable accoutrements of the startup set. Critics have called them “dorms for adults,” while more evangelical residents praise them for the instant community they create.