India co-living market to hit trillion mark in 2023

A future supply of shared rental spaces more akin to hotels

The shared rental market in India is projected to hit a demand of 5.7 million beds, representing a market opportunity of INR1 trillion (USD71.6 million), by 2023, according to a joint study by JLL and the Associated Chambers of Commerce and Industry of India (ASSOCHAM).

The Delhi-NCR area as well as Bengaluru will comprise more than 50 percent of the cumulative capacity for shared rental spaces, the study predicted. Demand for shared rental beds had hit 3.6 million units last year, in comparison.

While India is no stranger to co-living, it is welcoming a more formalised form of the sector—distinct from the unorganised, self-rented accommodations that characterised spaces in years prior. Companies such as Oxfordcaps, CoHo, Zolo Stays, Stanza Living, Placio, OYO Life, Housr, Ziffy Homes and Nestaway have forayed into the segment in the last two years, either solely or through ventures with local private equity firms.

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“The co-living concept brings a drastic transition in the manner in which physical space is managed. It transforms the real estate product into a service akin to the hospitality sector,” the report stated.

“In co-living there is greater emphasis on spaces such as dining and living area. The emphasis is also on supporting facilities such as gym, mobile apps, and house-keeping. These features are not available in self-rented accommodations.’’

The paper recommended co-living as “a good opportunity to realise rental yield.” Unsold residential properties can be converted into co-living spaces or student housing if they are in proximity to universities or office corridors.