Co-living refers to living together in private or shared rooms with access to shared amenities like kitchens, living rooms, etc. leading to a community-oriented lifestyle. Operated by businesses that rent out entire buildings or homes or condos, the residents are provided with fully furnished spaces at an affordable price with a great community of like-minded individuals. 

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Talking about India, the co-living culture is being driven mostly by students and millennials who are redefining work and life. 

According to Krishna Kumar - Co-founder, Isthara Co-Living - people now prefer modern apartments in urban centers rather than the traditional leasing model. 

“Property owners (or developers) typically sign a contract with operators to convert their dwelling into a co-living facility. In this process, spaces are designed based on human interaction, constructed or renovated according to needs, furnished appropriately, etc.

After the space is ready, the operator is responsible for managing the facility's complete lifecycle, including tenant identification and marketing, rent collection, property maintenance and management, organizing community events, addressing complaints and concerns from tenants and property owners. Certain co-living operators such as Isthara Co-living are also utilizing technology and stringent SOP-focused solutions to transform the millennial accommodating segment into high-quality shared living spaces,” Kumar told Zee Business.

How co-living is different from being a paying guest? 

While paying guests or PGs and flat sharing concepts have existed since forever, co-living provider formalises the unorganized industry. Co-living companies cater perfectly to the growing millennial population by creating quality living spaces for this target audience. 

“As compared to hostels and PGs, co-living offers a more elevated lifestyle, with more opportunity for interaction and cohabitation without the overbearing scrutiny. One of the main benefits of co-living is that comfort is not compromised, and one can expect the same quality of services as what one receives from a hospitality brand as they are committed to the comfort of their customers. Co-living spaces also provide additional amenities and features, and it strives to provide a home-like comfort with a like-minded community of people. At Isthara, we value the personal space of people and work towards making it a comfortable home with fun corners like a library, common area, gaming zone etc. Whereas a PG operates in an unorganized fashion and its features are limited to just a room and bare minimum furnishings, with no organized emphasis on service or redressal,” Kumar said.

Unlike PGs, most co-living spaces have strict safety protocols in place, and CCTV cameras in common areas to ensure the spaces are being monitored, and are not subject to any kind of danger. Co-living spaces also often have good and quick redressal systems to address any safety concerns that their residents might have. PGs and other kinds of living accommodations can also quickly raise the cost of living for students, especially for those choosing a larger space. Unlike traditional housing solutions, co-living facilities don’t follow strict brokerage policies and notice periods or hefty deposits making it more flexible and accessible for students.

Why there has been an increase in the demand for co-living in the recent past?

With India’s ever-growing population, which will include a sizeable number of millenials, co-living is a lucrative market segment. Over the course of the past few years, the co-living segment has grown extensively and has witnessed a strong recovery post the COVID-19 pandemic. The reopening of offices and colleges put a sudden pressure on students and young professionals to find suitable lodging options, which caused the recovery that we are now witnessing. Moreover, single occupancy rooms are in high demand among co-living operators as the demand and preference for more personal space and privacy have increased after Covid. 

According to a Colliers report, by 2024, the co-living segment is expected to have 4,50,000 beds within the organized sector, which is a substantial increase from the 2,10,000 beds by the end of 2021. 

 Is the trend of co-living going to stay? 

“India’s student population is growing at a CAGR of 9.2% and the current number of beds supplied across the country is estimated to be 6.9 million. This falls sharply under the demand for over 9.5 million students who are pursuing higher studies and require housing options. Additionally, only 18%-20% of students are provided accommodation by the university. This situation hence presents a promising opportunity in the student housing segment as well,” the founder of  Isthara Co-Living said. 

A once unorganized market, co-living has evolved into an ecosystem with startups, developers, and investors participating in it. There is no doubt that the foreseeable future of the co-living industry is bright, with the growing demand, and competitive environment being created by multiple players.

“Co-living spaces are now more convenient than rental spaces or apartments, as they are well-furnished, cleaned, and maintained, which is difficult in private rental spaces. By combining cutting-edge technology with human understanding, co-living companies in India are attracting and satisfying customers by providing a superior community housing experience. Urban migration continues to be a major phenomenon, largely influenced by demographic growth and poverty-induced rural-urban migration. Gen Y and millennials prefer shared living over private rental apartments for a number of reasons, including the cost of living, services offered by co-living spaces, location, etc.” 

Which all countries are providing co-living spaces?

Apart from India, countries like China have moved first and fast in the co-living segment. In the USA, Europe and Southeast Asia, many operators are moving aggressively into co-living opportunities as well. Apart from these, the Middle East, Australia and New Zealand are some of the most interesting markets where the co-living concept is slowly emerging.