We live in a globally connected world and this has led to the real estate sector experiencing a redefinition of the meaning of ‘living’ and ‘working’. The concept of ‘shared economy’ has just started to unfold in India and the days ahead look much more exciting. Unlike earlier when ‘ownership’ was fundamental to success in life, today ‘sharing’ has taken the centre stage. In a global climate of ever-rising costs and shrinking resources, communities and enterprises are coming together to create products and platforms that are changing how we live, work and play. Sharing resources is at the heart of most of these innovative offerings.
The ‘co-living’ concept is a reflection of the ‘asset-light model’ that was pioneered by the hospitality sector. The concept is fast emerging as an alternative residential real estate offering, ensuing as a sustainable solution to the ever-growing urban space scarcity. While keeping privacy sacrosanct, ‘co-living’ emphasizes social exchange, flexibility, and affordability, hence making it an ever-rising phenomenon.
To map, understand, and predict the development and growth of this shared housing segment, JLL Research conducted a demand survey targeting millennials across the top seven cities of Mumbai, Delhi NCR, Bengaluru, Hyderabad, Chennai, Kolkata and Pune. The resultant analysis of the survey findings has gone into this report. The report indicates that the supply of beds by organised co-living players is expected to increase to about 541,000 across the top seven cities by 2023, with Delhi NCR and Bengaluru accounting for more than 50% of this cumulative capacity. According to the report’s analysis, by 2023, India’s urban co-living market is set to become an INR 1-trillion opportunity. A clear invitation for organised shared space operators, local landlords, property owners as well as real estate development firms to enter the segment while it continues to be at a nascent stage in India. As an indication of future opportunities, alternative assets such as co-living are gradually coming into the radar of domestic as well as overseas investment firms. Several large global funds and institutional investors have shown active interest in co-living projects. The report foresees this young shared living market continuing to be re-shaped during its nascent years.