Will Co-living Spaces Can Survive In India Into The New Normal?

Coliving Spaces in India is a trend that provides shared accommodation most cost-effectively. Check this article to know about the future of co-living spaces in India and how it is beneficial for individuals. 

If you are staying single and get significantly less spare time, then spending a huge amount of money on accommodation can be of no use. 

You might be paying for those areas of your house that you use occasionally. 

Then there is only one solution for this which is staying in a coliving space which will help you to save a lot of money. 

You will get to share rent for the less used space in the apartment and staying with like-minded people will be interesting. 

What Is Co-living Space

Co-living space provides amenities such as a shared kitchen, utility space, lounge room, and a joint working zone for members to utilize. 

This is in addition to each resident’s separate bathroom and bedroom.

This is the best option if you’re seeking a decent place to stay that provides all of the amenities while also taking management and maintenance. 

More significantly, you don’t want to pay for rooms that you don’t use very often but can’t live without as they are necessities. 

The main purpose of co-living spaces is to bring together people of similar lifestyles and preferences by allowing community living and providing a variety of facilities and amenities.

Co-living Spaces Future

A study has specified that for a working person, the bedroom only accounts for around 40% of the entire rental cost. 

So, it is beneficial to have the less-used quarters shared by numerous individuals to split the rental, utility, and maintenance costs.

A report in 2021 stated that around 61% of 20000 respondent prefer to stay in a private room where they can enjoy their privacy. 

This also provides a flexible rental agreement eliminating the requirement to search for new furniture.  

However, 39% of the total respondents stated that they would love to share their room and create a bond with like-minded new people as it would also help them to save money. 

Coliving spaces are generally located near any educational institution or business park so that the people staying there can cut down the struggle of traffic every day. 

Many startups like Co-live have captured this business idea and currently operate in Bangalore, Mumbai, Chennai, and Hyderabad. 

In the future, many new companies will provide similar kinds of facilities to people near their educational institutes and business park. 

Gen Z or early-stage professionals are the ones who demand co-living spaces where they can travel easily to their destination and also save a lot of money. 

Coliving Spaces Post-Pandemic

The increasing rate of vaccination has helped every sector to recover from the pandemic substantially. Each of the sectors is now looking forward to improving its situation. 

Meanwhile, start-ups with coliving spaces business models have also bloomed as there has been a rise in the employment rate in November 2021.  

Grabbing the opportunity at the right time, new start-ups have been established. 

According to the Colliers report, it is mentioned that the beds in coliving spaces will increase from 210000 beds to 450000 beds by the year 2024. 

During the pandemic, these businesses have seen a lot of ups and downs. 

During the time between December 2020 and March 2021, the business crossed the limit of coliving facilities by 45-50%, and at that time the market improved. 

In March 2022, the percentage of coliving facilities improved to 60-70%. 

However, after the second wave, the business faced a loss due to the fact of ‘sharing’, working from home, etc. 

As the unlock process started, the business was again on track and now they are performing better than expected. 

Coliving Spaces In India

The types of coliving spaces are numerous. However, because they’re frequently set in big cities, the scenery is usually the same. 

You’ll have several residences to choose from depending on the location of your workplace.

It is observed that millennials from across the country who are around the age group of 20-30 years are more interested in living independently. 

However, they also look to save money at the same time.  

Coliving spaces have connected the bridge between staying independent, saving money, and also connecting with like-minded people. 

Around 50 startups have generated this idea of coliving space in the market. As per Knight Frank Report, this market in India has the potential worth 93 billion dollars each year. 

By 2025, 525 million Indians will be living in urban areas. An increase in the number of individuals shifting to Urban areas for living will increase the demand for staying in accommodation with less rent.

The Co-Living spaces business has future opportunities to grow in the Indian market. 

How Does Coliving Work

Considering the utilities which the coliving space offers to a person, there are many benefits which a person staying in coliving spaces avails and they are:

1. Cost-effective: staying in a rented apartment or hotel can be very costly for a single person. Coming up with an idea where housekeeping and maintenance services are available, makes the concept very appealing to single people looking for rental housing. 
2. Ideal condition: There are more opportunities to bond and form new friendships, making this active living situation even more interesting and sought after by single people. The co-living concept is rapidly being seen as an effective remedy for lonely singles.
3. Need to explore: It might take a little more time for India to grab this innovative idea due to infrastructure costs and financials. However, it is also believed that this would be feasible for the employees which result will add value to their work life. Currently, an unofficial idea exists in which a 3 or 4-bedroom apartment is shared, along with the living and dining areas serving as common spaces. However, the full idea must be optimised before implementing it.   
4. Other benefits: These innovative living spaces are designed and offered to members who share similar interests, preferences, and beliefs, and co-living allows people to interact and live with people who share similar ideologies.

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